India: Third-Party Funding in Practice of International Arbitration

Abstract

High expenses are associated with international investment arbitration. To save the additional expenditure of the adjudication, parties typically prefer sponsored third-party arbitration proceedings. On the other hand, the third-party funder is interested in funding the arbitration to benefit significantly from the dispute's resolution. Interestingly, the arbitrators should be able to overlook the Third-Party Funding [TPF] issue to gain the necessary competency. Their competence is limited to disputes between the foreign investor and the host state only. This article discusses the concept and legal status of the third-party funder in arbitration.