Jul 28, 2023

Delhi HC Holds that Third-Party Funder Not a Party to Arbitration Award Cannot be Held Liable to Pay Arbitral Award

In Tomorrow Sales Agency (P) Ltd. v. SBS Holdings Inc.[1] a Division Bench of the Delhi High Court (‘Delhi HC’) held that a third-party funder in an arbitration, being a non-signatory to the arbitration award ‘cannot be mulcted with liability, which they have neither undertaken’ simply because the third party funder funded a party in the arbitration proceedings.

[1] Tomorrow Sales Agency (P) Ltd. v. SBS Holdings Inc., 2023 SCC OnLine Del 3191.




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