BILATERAL INVESTMENT TREATY CLAIMS AGAINST INDIA DISMISSED, EXTERNAL…
BILATERAL INVESTMENT TREATY CLAIMS AGAINST INDIA DISMISSED
The government has announced that the International Arbitration Tribunal has dismissed all claims against India in entirety in relation to the cancellation of Letters of Intent for providing 2G services.
Investment Treaties (BITs)
These are agreements between two countries (States) for the reciprocal promotion and protection of investments in each other’s territories by individuals and companies situated in either State.
• It is an independent non-governmental panel of independent and impartial experts.
• It comprises of three members nominated by the Parties (or appointed by the International Arbitration Institution, or by a National Court) on the basis of their legal and practical expertise and knowledge, to render a final and binding award
• India signed its first BIT in 1994 with the United Kingdom.
The following are the essential clauses covered under BITs:
Fair and Equitable Treatment and Full Protection & Security
National treatment and Most-favored-nation treatment
Dispute settlement mechanisms, both between States and between an investor and a State
• The claims were filed by Tenoch Holdings Limited (Cyprus), Mr. Maxim Naumchenko (Russian Federation) and Mr. Andrey Poluektov (Russian Federation) against India under the Bilateral Investment Treaties with Cyprus and Russian Federation.
• The proceedings were administered by the Permanent Court of Arbitration (PCA).
• Bilateral Investment Treaties between the two countries allow a private investor to initiate dispute arbitration proceedings against the government to protect its investments.
• The verdict was pronounced last year in July 2019 by the International Arbitration Tribunal constituted in accordance with the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules, 1976.