Third-Party Litigation Funding In India: A Legal Vacuum Or A Regulatory Opportunity
- IJLLR Journal
- May 30
- 2 min read
Debashreeta Purohit, Faculty of Law, The Maharaja Sayajirao University of Baroda
ABSTRACT
A financial mechanism known as Third Party Litigation Funding (hereinafter referred to as TPLF) allows an outside party, usually a private investor or business organization, to pay for a litigant's legal fees in exchange for a share of the money made from the lawsuit, which is dependent on its success. With its roots in the ancient theories of champerty and maintenance, TPLF has undergone substantial development, particularly in countries like Australia, the United States, and some regions of Europe, where it is now more widely acknowledged as a means of improving access to the legal system. With confidentiality and ethical protections in place, TPLF agreements often specify the identities of investors, funding amounts, and control rights in litigation strategy. The increasing participation of a wide range of investors, including as hedge funds, insurance companies, and even crowdfunding websites, highlights the way in which legal claims are treated as financial assets. In India, TPLF is still in its infancy, but if judicial supervision and regulatory clarity develop together, it has the potential to democratize access to the legal system, especially in high-stakes commercial and arbitration conflicts. By reducing the financial burden on litigants with limited resources, assisting public interest cases, and facilitating the advancement of complicated claims like intellectual property rights and insolvency, Third Party Litigation Funding (TPLF) can improve access to justice in India. Laws would control investor involvement in court cases, guarantee transparency, and shield plaintiffs from exploitation.The author of the said research paper has briefly discussed the concept and history of TPLF along with this the author has attempted a comparative analysis with respect to functioning of TPLF in United Kingdom, Australia and Singapore.
