International Journal of Social Science & Economic Research
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Title:
THIRD-PARTY FUNDING FOR ARBITRATION IN INDIA

Authors:
Siddhartha Fuller

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Siddhartha Fuller
Rajiv Gandhi National University of Law, Punjab

MLA 8
Fuller, Siddhartha. "THIRD-PARTY FUNDING FOR ARBITRATION IN INDIA." Int. j. of Social Science and Economic Research, vol. 7, no. 6, June 2022, pp. 1729-1741, doi.org/10.46609/IJSSER.2022.v07i06.019. Accessed June 2022.
APA 6
Fuller, S. (2022, June). THIRD-PARTY FUNDING FOR ARBITRATION IN INDIA. Int. j. of Social Science and Economic Research, 7(6), 1729-1741. Retrieved from https://doi.org/10.46609/IJSSER.2022.v07i06.019
Chicago
Fuller, Siddhartha. "THIRD-PARTY FUNDING FOR ARBITRATION IN INDIA." Int. j. of Social Science and Economic Research 7, no. 6 (June 2022), 1729-1741. Accessed June, 2022. https://doi.org/10.46609/IJSSER.2022.v07i06.019.

References

[1]. Emmanuel Gaillard& John Savage, Fouchard, Gaillard, Goldman On International Commercial Arbitration (Kluwer Law International, 1st ed. 1999).
[2]. International Council For Commercial Arbitration et al., Report of the ICCA-Queen Mary Task Force on Third-Party Funding in International Arbitration (April, 2018), https://cdn.arbitration-icca.org/s3fs-public/document/media_document/Third-Party-Funding-Report%20.pdf.
[3]. Id.
[4]. LISA BENCH NIEUWVELD & VICTORIA SHANNON SAHANI, THIRD-PARTY FUNDING IN INTERNATIONAL ARBITRATION (Wolters Kluwer, 2nd ed. 2017).
[5]. Id.at 1277.
[6]. Tsai-fang Chen, The Outsider’s Identity in International Commercial Arbitration — From the Group of Companies Doctrine and IBA Guidelines on Conflict of Interest to Adverse Costs Awards Against Third-Party Funders, 12 Contemporary Asia Arbitration Journal (2019).
[7]. Id.
[8]. Julio César Betancourt & Great Britain, Defining issues in international arbitration : celebrating 100 years of the Chartered Institute of Arbitrators (Oxford University Press) (2016); Frank Garcia, Third-Party Funding as Exploitation of the Investment Treaty System, 59 Boston College Law Review 2911 (2018), https://lawdigitalcommons.bc.edu/bclr/vol59/iss8/15 (last visited Oct 29, 2021).
[9]. Nieuwveld & Sahani, supranote 4.
[10]. Pranav V. Kamnani & Aastha Kaushal, Regulation of Third Party Funding of Arbitration in India: The Road Not Taken, 8 Indian Journal of Arbitration Law 151(2019).
[11]. Christine Sim, Third Party Funding in Asia: Whose Duty to Disclose? (May 22, 2018) (KluwerArbitration), http://arbitrationblog.kluwerarbitration.com/2018/05/22/third-party-funding-asia-whose-duty-disclose/.
[12]. Ram CoomarCoondoo v. Chunder Canto Mookerjee,[1876] 2 AC 186, 208 (PC).
[13]. Id.
[14]. Id.at 210.
[15]. AVTAR SINGH, TEXTBOOK ON THE TRANSFER OF PROPERTY ACT 39 (Lexis Nexis 6) (2019).
[16]. AIR1954 SC 557, ¶11.
[17]. Id.
[18]. Bar Council of India (Standards of Professional Conduct and Etiquette) Rules, 1975, Gazette of India, Rule 20-21.
[19]. AIR 2018 SC 1382, ¶35.
[20]. G.A. Res. 67/1, Declaration of the High-Level Meeting of the General Assembly on the Rule of Law at the National and International Levels, (2012) ¶ 2.
[21]. Tara Santosuosso & Randall Scarlett, Third-Party Funding in Investment Arbitration: Misappropriation of Access to Justice Rhetoric by Global Speculative Finance, 60 Boston College Law Review E. Supp. I.–8 (2019), https://lawdigitalcommons.bc.edu/bclr/vol60/iss9/5 (last visited Oct 29, 2021).
[22]. Pranav v. Kamnani & Aastha Kaushal;supranote 10.
[23]. Michael Abramowicz, Litigation Finance and the Problem of Frivolous Litigation, 63 DePaul Law Review (2014).
[24]. RSM Production Corporation v. Saint Lucia, ICSID Case No. ARB/12/10, ¶33.
[25]. Clive Bowman et al., Third party funding in international commercial and treaty arbitration - a panacea or a plague? A discussion of the risks and benefits of third party funding, 4 TDM (2011).
[26]. UNCTAD, Recent Developments in ISDS (UNCTAD) (2013).
[27]. Pranav V. Kamnani & Aastha Kaushal, supranote 10.
[28]. Id.
[29]. Jason Geiskar & Dirk Luff, The Third Party Litigation Funding Law Review: Australia, The Third Party Litigation Funding Law Review (2021).
[30]. (2006) 229 CLR 386, ¶ 146-149.
[31]. (2002)211CLR1.
[32]. Supranote 30, ¶ 92.
[33]. Id.¶ 88-93.
[34]. Id.¶ 91.
[35]. Bhavana Sunder & Kshama Loya, Demystifying Public Policy To Enable Enforcement Of Foreign Awards – Indian Perspective PART II, 11 The National Law Review (2021).
[36]. International Council For Commercial Arbitration et al.;supranote 2 at p. 81.
[37]. Id. at p. 117.
[38]. ICC, Note To Parties and Arbitral Tribunals On The Conduct Of The Arbitration Under The ICC Rules Of Arbitration (ICC) (2021), ¶. 28.
[39]. See Eurogas Inc. & Belmont Res. Inc. v. Slovak Repub., ICSID Case No. ARB/14/14, Hearing on Provisional Measures (2015); Muhammet Çap & Sehil Ins¸aat Endustri ve Ticaret Ltd. Sti. v. Repub. of Turkm, ICSID Case No. ARB/12/6.
[40]. Pranav V. Kamnani & Aastha Kaushal,supranote 10.
[41]. Teinver S.A., Transportes de Cercanías S.A. & Autobuses Urbanos del Sur S.A. v. Argentine Republic, ICSID Case No. ARB/09/1, Decision (2011).
[42]. Burford Capital, 2018 Annual Report (Burford Capital) (2018).
[43]. Frank Garcia,supranote 8.
[44]. UK Ministry of Justice, The Code of Conduct for Litigation Funders (Civil Justice Council) (2011).
[45]. Rachael Mulheron, England’s Unique Approach To The Self-Regulation Of Third Party Funding: A Critical Analysis Of Recent Developments, 73 The Cambridge Law Journal 570–597 (2014).
[46]. Mahdev Mohan & Chester Brown, The Asian turn in foreign investment (Cambridge University Press) (2021).
[47]. Pranav V. Kamnani & Aastha Kaushal, supranote 10.
[48]. Shri. Ravi Prasad Shankar, High Level Committee to Review the Institutionalisation of Arbitral Mechanism in India (Legal Affairs) (2017).
[49]. Id.
[50]. Carlos Esplugues Mota, Foreign investment and investment arbitration in Asia (Intersentia) (2019).

ABSTRACT:
Third-party funding has become a necessary evil in light of the exorbitant expenses associated with international and local arbitration. Third-party funding had historically been declared unlawful in litigation in the majority of common-law countries due to the application of the outdated doctrines of maintenance and champerty. Arbitration hotspots such as Singapore and Hong Kong have enacted legal frameworks recognizing and accepting third-party funding in arbitration, thus abolishing these antiquated principles. Despite the uproar over its ethical, economic, and legal implications, regulating this financing method encourages access to justice and helps qualified plaintiffs to progress in their cases. This paper attempts to examine the advantages and dangers connected with third-party funding by referring to current regulatory systems in various countries. Due to the absence of regulation, the Indian market may continue to face considerable dangers. Legislation to address this legal void might aid India in becoming the arbitration center that it aspires to be.

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