This note gives an Indian perspective into third party
funding in international arbitration.
Introduction
With increasing cross-border transactions international
commercial and investment arbitrations have also increased
concurrently. Though, arbitration is the more efficient and time
saving procedure (as compared to litigation in domestic
jurisdictions) the exorbitant costs attached with it cannot be
ignored. The concept of third party funding agreements has helped
financially weaker claimants to successfully pursue their
legitimate interests without putting their businesses at economical
risk. With the advent of third party funding there are various
legal issues which have arisen in different jurisdictions. These
issues mainly revolve around the aspect of enforcement of an award,
where the claimant had been funded by the third party, and the
validity of the third party funding agreements. An arbitration
award, where a third party funding agreement is present, can
