Footprint of TPF entities in Trade Liberalization and International Commercial Dispute Resolution Mechanism with Reference to India

Abstract

Lately International Commercial Arbitration has witnessed a remarkable development in the contribution of Third-Party funders not only in litigation but also in in arbitral proceedings, raising queries regarding the legitimacy of TPF in international arbitral proceedings. Presently, more and more litigants are seeking to take advantage of external funding, “either because they lack the necessary funds to commence arbitration proceedings or because they want to maintain cash-flow and offset the risk of an uncertain outcome.” Dispute resolution mechanism in India tends to be a cost-heavy proposition for the parties involved. And being the developing country India is now willing to open its door towards the outside funding practices in dispute resolution mechanism. The present discussion highlights the footprint of third party funding in trade

liberalization and the governing principles of  International Commercial Arbitration with reference to Indian Legal Policies.