A STUDY ON THIRD PARTY FUNDING IN COMMERCIAL ARBITRATION

Authors: Elamathi. J & Soorya. S, Students of Christ (Deemed to be University), Bangalore

Best Citation – Elamathi. J & Soorya. S, A STUDY ON THIRD PARTY FUNDING IN COMMERCIAL ARBITRATION, Indian Journal of Legal Review (IJLR), 3 (1) of 2023, Pg. 78-87, ISSN – 2583-2344.

Abstract:

The growth of third-party funding is inevitable given the complexity of international commercial disputes and the variety of requests for dispute resolution. The third-party funding model compensates for the absence of a legal aid system in the arbitration field, which indirectly enhances the quality of arbitration trials, thereby promoting the better development of arbitration as a dispute settlement method. It also provides investment opportunities for the funders and shares the financial burden and arbitration risks with the parties to disputes. However, the practice of arbitration also faces considerable difficulties due to resulting conflicts of interest, case confidentiality, enforcement issues, and other dangers. Therefore, it is essential to set up reliable regulatory frameworks to safeguard the advancement of third-party finance models. The hazards that the model faces in practice are examined in this study, and the pertinent issues that prevent the model from developing more effectively are made clear. This foundation allows for the consideration of all subjects’ interests, the detailed regulation of each stage of the process, and the overall organisation of the “regulation” of third-party funding.

Keywords: Arbitration, Third party funding