Third-Party Funding in Dispute Resolution in India

Third-party funding, is a non-recourse funding a litigation, arbitration, mediation or any other form of dispute resolution costs of a party by a third party which is not a party to a dispute. Some hail it as the ‘biggest and most influential trend in civil justice’. Internationally, the third-party funding is permitted and the industry has grown exponentially. But despite such progress, India continues to restraint from acknowledging third-party funding, though not explicitly being silent on the concept. The paper provides overview of the framework and legal status of the Third-party funding in India. The author critiques some of the prevalent problems and lacunae associated with it. The paper provides insight into the global perspective and internationally recognized practices associated with third-party funding. The article sheds light to the fact that the idea of third-party funding is not uncanny to India while analyzing judicial precedents and statutory provisions permitting such funding.