Abstract
Third-party funding in International Commercial Arbitration is one of the most contemporaneous and controversial issue in the normative framework in India. The last several years have witnessed increasing involvement of Third Party Funders in International Commercial Arbitration proceedings. Third-party funding has been considered as one of the means of access to justice for those who have a credible claim but no financial means to pursue it. Dispute resolution in India tends to be a cost-heavy proposition for the parties involved. The present discussion highlights critical appraisal regarding TPF (Third Party Funding) from the delivery of procedural and substantive justice as well as suggesting legal and jurisprudential grounds in third party funding governance all across the world.
Highlights
Third Party Funding in International Commercial Arbitration as well as Investment Arbitration has become widespread practice over the years and Singapore being one of the developed countries and member of ASEAN has on March, 2017 already given effect to Third Party Funding practice in International arbitration and related court proceedings by amending its “Civil Law being Civil Law (Amendment) Act (Bill No 38/2016)”
Hong Kong has followed by adopting the “Arbitration and Mediation Legislation (Third Party Funding)(Amendment) Bill 2016 on 14 June 2017” which is much similar to that of Singapore
“The Transatlantic Trade and Investment Partnership (TTIP), which is currently available in proposed form only, includes rules on third-party funding”
Summary
Third Party Funding in International Commercial Arbitration as well as Investment Arbitration has become widespread practice over the years and Singapore being one of the developed countries and member of ASEAN has on March, 2017 already given effect to Third Party Funding practice in International arbitration and related court proceedings by amending its “Civil Law being Civil Law (Amendment) Act (Bill No 38/2016)”. The tortuous principles of Maintenance and Champerty regained its access from late 2012 and early 2013 in International Commercial Dispute Resolution and some developed countries, for example, Australia, the United Kingdom and the United States, Canada, Singapore have already endorsed TPF practice in International Commercial Arbitration Proceedings in their legal frameworks. With Third Party Funding mechanism gaining increasing global significance in providing parties’ access to justice, the time has come for India to formally open its doors to dispute financing in International Commercial Arbitration. As an alternative to long drawn-out court litigation where cases languish for years without resolution, commercial arbitration has provided much needed relief to disputants in India In this context, third-party funding in India would enable access to justice, but effective access to justice. The exhaustive due diligence conducted by funders prior to entering into funding agreements would go a long way towards ensuring that only meritorious claims receive funding
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