This article suggests that the disclosure of the existence of a third-party funder in arbitration is an essential step to safeguard the fairness and transparency of the arbitral process.
Authors
Rahul Bipin Meduri, Jindal Global Law School, O.P. Jindal Global University, Sonipat, Haryana, India.
Ravneet Kaur Baweja, Jindal Global Law School, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
This article discusses the concept of third party funding in the context of international arbitration. After a general description of what third party funding is and how it works, the article examines the possible implications that the various principles of third party funding such as the conflict of interest, confidentiality, the control of arbitral proceedings may have on the impartiality and independence of the arbitral proceedings.
Since the involvement of a third-party funder may create different situations of conflict of interest for the arbitrators, which in turn may affect the entire arbitral proceedings and the final award, the article suggests that the disclosure of the existence of a third-party funder in arbitration is an essential step to safeguard the fairness and transparency of the arbitral process.
The article then discusses the various dispute funding models such as the insurance of disputes corporate financing and the sale of claims. Further the article briefly discusses the various jurisdictions, which recognized the idea of third party funding. The article then evaluates as to whether third party funding should be given statutory recognition in India or not? Finally, the article concludes by suggesting that third party funding should be adopted in India.
Published in: Supremo Amicus
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