INTRODUCING THIRD-PARTY FUNDING IN INDIAN ARBITRATION: A TUSSLE BETWEEN CONFLICTING PUBLIC POLICIES

Abstract

Third-party funding in litigation as well as arbitration is a development that has taken the world by storm. Despite such development, India continues to take a silent stance regarding the same. As opposed to this silent stance, this paper aims to shed light on the possibility of introducing third party funding in the Indian arbitration regime. By adopting a comprehensive approach, this paper begins by laying down a working definition of third-party funding. Next, this paper makes reference to the practices prevalent in various jurisdictions with respect to third party funding. While tracing such developments, the author also critiques some of the problems associated with third party funding and what approach has been adopted globally to effectively solve such problems. By employing the international developments as a foundational basis, the author then turns to Indian law by analyzing various rulings and statutory provisions that impliedly permit third party funding in the Indian arbitral regime. Finally, the author concludes by suggesting the changes that need to be introduced to effectively deal and promote third part funding.