Receiving money on client's behalf: In case the advocate receives any amount on behalf of the he client, the fact of receipt of the amount has to be intimated to the client as early as possible. An advocate receiving any money on behalf of his client in the course of his employment, does so as a trustee and is bound to return the same. He cannot claim any lien on the money so received unless it is expressly stipulated
Purchasing property on client's behalf: An advocate is prohibited from purchasing, directly or indirectly, or bidding for, or purchasing, either in his own name, for his own benefit, or for the benefit of any other person, any property sold in the execution of a decree or order in which he was in any way professionally engaged. However, in case the advocate is expressly authorised in writing to bid for or purchase any property for his client, this prohibition does not apply.
Dealing with actionable claims: An advocate should not buy, or deal in or agree to deal in any share or interest in any actionable claim. But this restriction may not apply to stocks, shares and debentures or government securities or to any instruments which are, for the time being, by law or custom, negotiable, nor is it applicable to any mercantile document of title to goods.
Maintaining proper accounts: An advocate should keep proper accounts of the client's money entrusted to him and such accounts should clearly reflect the following:
- Amounts received from the client or on behalf of the client (the entries in the accounts should contain a reference as to whether the amounts have been received for fees or expenses)
- Expenses incurred for the client
- Debits made on account of fees with all the necessary dates and particulars.
A copy of the client's accounts must be furnished to the client on demand.
Giving and receiving loans: An advocate is also prohibited from entering into arrangements whereby the funds in his hands are converted to loans.
An advocate must not lend money to his client for the purpose of any action or legal proceedings in which he is engaged by such client nor should he, except in very special circumstances, accept loans from their clients
Adjusting fee amount: An advocate may not adjust the fee payable to him by his client against his own personal liability to the client, when the liability does not arise in the course of his employment as an advocate.
Even with regard to fees during the course of the proceedings, the advocate should not, without the consent of the client, divert any portion of the expenses towards fees. However, once the proceedings are terminated, the advocate is entitled to appropriate towards the settled fee due to him, any sum remaining out of the amount paid or sent to him for expenses, or any amount that has come into his hands in that proceeding. The balance must re returned to the client.
| imer |
