TPFL

Third-Party Litigation Funding (TPLF) 

Third-Party Litigation Funding (TPLF) offers a new approach that is a game-changer, potentially opening courtroom doors for many who have felt shut out. It can be termed as Potential Equaliser.

Pros:

1. Access to Justice: Enables plaintiffs with financial constraints to pursue legal claims without the burden of upfront costs.2. Risk Mitigation: Plaintiffs don’t have to repay if they lose the case, minimizing financial risk.3. Leveling the Field: Balances the scales between financially unequal parties.4. Resource Optimization: Allows businesses to allocate their resources to core activities rather than diverting funds to litigation.5. Ensure Consumer Rights: TPLF ensure market accountability for Companies and safety nets for consumers. 6. Promotes Fundamental Rights: Right to access justice is a fundamental right under Article 21 of the Indian Constitution. TPLF is a mechanism to enhance this right by providing financial support to pursue legal claims.

Cons:

1. Profit Motive: Funders might push for settlements that favor their returns over the plaintiff’s best interest.2. Control Issues: Funders could influence the litigation strategy, impacting the plaintiff’s autonomy.3. High Costs: Successful claims can result in a significant portion of the winnings going to the funder.4. Confidentiality Risks: Sharing sensitive case details with third-party funders could potentially breach confidentiality agreements.

Wayforward:

1. Pan India Legislation : Need Pan India legislation for better implimentation. 

Eg: States like Odisha , Madhya Pradesh , Gujrat and Maharashtra have amended their civil procedure codes to recognise TPLF.

2. Transparency in process: Implement measures that require transparency and reasonable profit margin.

CONCLUSION: India need to develop targeted and comprehensive regulation to promote safeguard  of rights. At the same time financial innovation of TPLF will promote 'justice for all'.