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Issues: Whether an advocate can lawfully claim fee calculated as a percentage of the decretal amount or contingent on the result of litigation, and whether a cheque issued towards such disputed fee can support proceedings under Section 138 of the Negotiable Instruments Act, 1881.
Analysis: A fee arrangement tying the advocate's remuneration to the outcome of litigation is inconsistent with professional ethics and public policy. The governing conduct rules prohibit an advocate from stipulating a fee contingent on the result of litigation or from sharing the proceeds thereof. Where the client disputes the very basis and quantum of the fee, issuance of a cheque by itself does not establish that it was given in discharge of a legally enforceable debt. In such a situation, the advocate must independently prove a valid fee contract and the existence of liability. A claim founded on a percentage of the subject matter in litigation cannot furnish the foundation for criminal prosecution under the cheque dishonour provision.
Conclusion: The claim based on contingent or percentage-linked advocate's fee was impermissible, and the proceedings under Section 138 could not be sustained; the complaint was liable to be quashed in favour of the appellant.
Ratio Decidendi: An advocate cannot enforce a contingent fee arrangement based on the result or proceeds of litigation, and a cheque issued towards such a disputed claim does not, by itself, establish a legally enforceable debt for the purpose of Section 138 of the Negotiable Instruments Act, 1881.