By Shivansh Jolly
With the passing of time, the concept of third party funding in international arbitration has started attracting attention, and has consequently attained considerable significance. The concept involves providing monetary assistance by a third party (stranger to arbitration) to one of the parties to the concerned arbitration, generally supported by a formalized agreement laying down the terms and conditions governing the assistance provided. Such agreements may entail a pre-decided incentive for a funder in the instance of a favourable award with respect to the party funded, such as remuneration to the extent of a fixed percentage of the award. The need for third party funding usually arises in cases where either the Complainant or the Respondent is financially incapable of bearing the expenses arising out of the dispute, more importantly, the costs following a possible adverse award. Another possible scenario which may invite third party funding may be an instance where a favourable result of a dispute benefits the funder in question, either directly or indirectly.Read More »
By Shivansh Jolly*
The developing jurisprudence in international investment arbitration has lately been confronted with the question of whether claims arising from contracts tainted with a blot of corruption in the international fora can be validly upheld. A classic example to describe such an instance would be where a private party in one country obtains a contract for infrastructural development in another country while illegally colluding with a minister of the host State which would prove decisive in the said contract being awarded to the concerned private party. With the contract being awarded and necessary investments being made in the host State, relationship between the parties reach a roadblock due to a possible reluctance of a new government regime to honour the terms of the tainted agreement in existence.
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By Shivansh Jolly
On 18th of July, 2014, a historical award in international investment arbitration was passed by the Permanent Court of Arbitration, commonly known as the “Yukos Arbitration”, in the case of Hulley Enterprises Ltd. (Cyprus) v The Russian Federation. The Tribunal comprised of arbitrators L. Yves Fortier (Chairman), Dr. Charles Poncet, and Judge Stephen M. Schwebel. The award went down in the books of unprecedented events for granting, by far, the largest sum of damages ever allowed in the field of investment arbitration, i.e., to the tune of 50 billion USD.Read More »