Regulating Third Party Funding In Arbitration In India: An Exploratory Study

Sebukta Nasrin Hussain, CHRIST (Deemed to be University) Delhi NCR

ABSTRACT

The emergence of third-party funding (TPF) in international arbitration and litigation has sparked significant interest, particularly concerning its potential impact on the Indian legal system. This paper delves into the necessity of regulating third-party funding within the Indian legal framework, aiming to scrutinize its various dimensions and potential effects on the judiciary. Positioned to establish itself as a global arbitration hub and enhance legal accessibility, India faces both opportunities and challenges with third-party finance. Initially tracing the evolution of third-party funding and elucidating its modalities, the paper investigates the motivations behind seeking external financial support, including risk mitigation, cost management, and ensuring access to justice. It underscores the imperative for a balanced legal framework tailored to the specificities of third-party finance in India, advocating for the preservation of ethical standards, the integrity of the legal system, and equitable access to justice. The conclusions drawn contribute to ongoing discussions on the regulation of third-party funding in India, providing valuable insights for policymakers, legal practitioners, and scholars navigating this evolving landscape.

Keywords: Third party funding, Arbitration, Cost Control, Access to Justice, Changing Environment, Risk Mitigation