GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

India s Model Bilateral Investment Treaty

India s Model Bilateral Investment Treaty - News and Press Release - Dated:- 20-1-2016 - F. No. 26/5/2013-IC Government of India Ministry of Finance Department of Economic Affairs (Investment Division) North Block, New Delhi Dated: 28th December, 2015 OFFICE MEMORANDUM Subject: India's Model Bilateral Investment Treaty Text India's Model Bilateral Investment Treaty (BIT) Text has been approved. 2. The text of the revised Model Bilateral Investment Treaty is at Annex, which will replace t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Block, New Delhi. Annex Model Text for the Indian Bilateral Investment Treaty BILATERAL INVESTMENT TREATY BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND Preamble The Government of the Republic of India and the Government of the Republic of - (hereinafter referred to as the Party individually or the Parties collectively); Desiring to promote bilateral cooperation between the Parties with respect to foreign investments; and Recognizing that the promotion and the protection of investments of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on means business confidential information, e.g. confidential commercial, financial or technical information which could result in material loss or gain or prejudice a disputing party s competitive position, and information that is privileged or otherwise protected from disclosure under the law of a Party; 1.2 Designated Representative means: (i) for India, Secretary/Additional Secretary/Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India. (ii) for - 1.3 ent .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ory the investment is made, taken together with the assets of the enterprise, has the characteristics of an investment such as the commitment of capital or other resources, certain duration, the expectation of gain or profit, the assumption of risk and a significance for the development of the Party in whose territory the investment is made. An enterprise may possess the following assets: (a) shares, stocks and other forms of equity instruments of the enterprise or in another enterprise; (b) a d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ow-how and intellectual property rights such as patents, trademarks, industrial designs and trade names, to the extent they are recognized under the law of a Party; and (g) moveable or immovable property and related rights; (h) any other interests of the enterprise which involve substantial economic activity and out of which the enterprise derives significant financial value; For greater clarity, investment does not include the following assets of an enterprise: (i) portfolio investments of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y from commercial contracts for the sale of goods or services by a national or enterprise in the territory of a Party to an enterprise in the territory of another Party; (v) goodwill, brand value, market share or similar intangible rights; (vi) claims to money that arise solely from the extension of credit in connection with any commercial transaction; (vii) an order or judgment sought or entered in any judicial, administrative or arbitral proceeding; (viii) any other claims to money that do not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty; or (b) a legal entity that is constituted, organised and operated under the laws of that Party and that is directly or indirectly owned or controlled by a natural person of that Party or by a legal entity mentioned under subclause (a) herein. 1.6 law includes: (i) the Constitution, legislation, subordinate/delegated legislation, laws & bylaws, rules & regulations, ordinance, notifications, policies, guidelines, procedures, administrative measures/executive actions at all levels of go .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

regulation, rule, procedure, decision, administrative action, requirement or practice. 1.9 natural person means a national or citizen of a Party in accordance with its law and regulations. A natural person who is a dual national or citizen shall be deemed to be exclusively a national or citizen of the country of her or his dominant and effective nationality/citizenship, where she/he ordinarily or permanently resides. 1.10 PCA Optional Rules means the Permanent Court of Arbitration Optional Rules .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

estments in the Party where the investment is made in specific sectors falls within the meaning of Pre-investment activity . 1.12 Sub-national government means a State Government or a Union Territory administration in the case of India but does not include local governments; and - in case of - 1.13 Territory means: (i) In respect of India: the territory of the Republic of India in accordance with the Constitution of India, including its territorial waters and the airspace above it and other mari .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tegral part of this Treaty and are to be accorded the same effect as other provisions in this Treaty. Article 2 Scope and General Provisions 2.1 This Treaty shall apply to measures adopted or maintained by a Party relating to investments of investors of another Party in its territory, in existence as of the date of entry into force of this Treaty or established, acquired, or expanded thereafter, and which have been admitted by a Party in accordance with its law, regulations and policies as appli .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s arising out of events which occurred, or claims which have been raised prior to the entry into force of this Treaty. 2.4 This Treaty shall not apply to: (i) any measure by a local government; (ii) any law or measure regarding taxation, including measures taken to enforce taxation obligations. For greater certainty, it is clarified that where the State in which investment is made decides that conduct alleged to be a breach of its obligations under this Treaty is a subject matter of taxation, su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er the WTO Agreement. (iv) government procurement by a Party; (v) subsidies or grants provided by a Party; (vi) services supplied in the exercise of governmental authority by the relevant body or authority of a Party. For the purposes of this provision, a service supplied in the exercise of governmental authority means any service which is not supplied on a commercial basis. Chapter II: Obligations of Parties Article 3 Treatment of investments 3.1 No Party shall subject investments made by inves .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rs with respect to their investments full protection and security. For greater certainty, full protection and security only refers to a Party s obligations relating to physical security of investors and to investments made by the investors of the other Party and not to any other obligation whatsoever. 3.3 A determination that there has been a breach of another provision of this Treaty, or of a separate international agreement, does not establish that there has been a breach of this Article. 3.4 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wn investors or to investments by such investors with respect to the management, conduct, operation, sale or other disposition of investments in its territory. 4.2 The treatment accorded by a Party under Article 4.1 means, with respect to a Sub-national government, treatment no less favourable than the treatment accorded, in like circumstances, by that Sub-national government to investors, and to investments of investors, of the Party of which it forms a part. Article 5 Expropriation 5.1 Neither .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

te of expropriation ), and shall not reflect any change in value occurring because the intended expropriation had become known earlier. Valuation criteria shall include going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine fair market value. 5.2 Payment of compensation shall be made in a freely convertible currency. Interest on payment of compensation, where applicable, shall be paid in simple interest at a commercial .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f a Party has an effect equivalent to direct expropriation, in that it substantially or permanently deprives the investor of the fundamental attributes of property in its investment, including the right to use, enjoy and dispose of its investment, without formal transfer of title or outright seizure. b) The determination of whether a measure or a series of measures have an effect equivalent to expropriation requires a case-by-case, fact-based inquiry, that takes into consideration: (i) the econo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent to the investor whether by contract, licence or other legal document. 5.4 For the avoidance of doubt, the Parties agree that an action taken by a Party in its commercial capacity shall not constitute expropriation or any other measure having similar effect. 5.5 Non-discriminatory regulatory measures by a Party or measures or awards by judicial bodies of a Party that are designed and applied to protect legitimate public interest or public purpose objectives such as public health, safety and t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o be freely transferred and on a non-discriminatory basis. Such funds may include: (i) contributions to capital; (ii) profits, dividends, capital gains and proceeds from the sale of all or any part of the investment or from the partial or complete liquidation of the investment; (iii) interest, royalty payments, management fees, and technical assistance and other fees; (iv) payments made under a contract, including a loan agreement; (v) payments made pursuant to Article 5 [Expropriation], Article .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bankruptcy, insolvency or the protection of the rights of the creditors; ii. compliance with judicial, arbitral or administrative decisions and awards; iii. compliance with labour obligations; iv. financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; v. issuing, trading or dealing in securities, futures, options, or derivatives; vi. compliance with the law on taxation; vii. criminal or penal offences and the recovery of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

where applicable, provided that, any new measure which would require a lock-in period for investments will not apply to existing investments. 6.4 Notwithstanding anything in Article 6.1 and 6.2 to the contrary, the Parties may temporarily restrict transfers in the event of serious balance-of-payments difficulties or threat thereof, or in cases where, in exceptional circumstances, movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in particular, mo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.1 If a Party or its designated agency makes a payment to any of its investors under a guarantee or a contract of insurance it has entered into in respect of an investment, the other Party shall recognize the validity of the subrogation in favour of such Party or agency thereof to any right or title held by the investor. 8.2 A Party or its designated agency thereof which is subrogated to the rights of an investor in accordance with paragraph 1 of this Article shall be entitled in all circumstanc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and remain in its territory for the purpose of engaging in activities connected with the investment. 9.2 For the purposes of this Article, natural person of the other Party means a natural person who resides in the territory of that Party or elsewhere, and who under the law of that other Party: (i) is a national of that other Party; or (ii) has the right of permanent residence in that other Party, provided that such other Party accords substantially the same treatment to its permanent residents .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arification, no Party is obliged to accord to permanent residents of another Party treatment more favourable than would be accorded by that other Party to such permanent residents. Article 10 Transparency 10.1 Each Party shall, to the extent possible, ensure that its laws, regulations, procedures, and administrative rulings of general application in respect of any matter covered by this Treaty are promptly published or otherwise made available in such a manner as to enable interested persons and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in this Treaty shall require a Party to furnish or allow access to confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular juridical persons, public or private. Chapter III - Investor obligations Article 11 Compliance with laws The parties reaffirm and recognize that: (i) Investors and their investments shall comply with all laws, regulations, administr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

intain other improper advantage nor shall be complicit in inciting, aiding, abetting, or conspiring to commit such acts. (iii) Investors and their investments shall comply with the provisions of law of the Parties concerning taxation, including timely payment of their tax liabilities. (iv) An investor shall provide such information as the Parties may require concerning the investment in question and the corporate history and practices of the investor, for purposes of decision making in relation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts, community relations and anti-corruption. Chapter IV Settlement of Disputes between an Investor and a Party Article 13 Scope and Definitions 13.1 Without prejudice to the rights and obligations of the Parties under Chapter V, this Chapter establishes a mechanism for the settlement of disputes between an investor and a Defending Party. 13.2 This Chapter shall only apply to a dispute between a Party and an investor of the other Party with respect to its investment, arising out of an alleged bre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ution provisions set out in the relevant contract. 13.4 An investor may not submit a claim to arbitration under this Chapter if the investment has been made through fraudulent misrepresentation, concealment, corruption, money laundering or conduct amounting to an abuse of process or similar illegal mechanisms. 13.5 In addition to other limits on its jurisdiction, a Tribunal constituted under this Chapter shall not have the jurisdiction to: (i) review the merits of a decision made by a judicial a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rty. (iv) disputing investor means an investor of a Party that makes a claim against another Party on its behalf under this Article, and where relevant, includes an investor of a Party that makes a claim on behalf of the locally established enterprise. (v) ICSID means the International Centre for Settlement of Investment Disputes. (vi) ICSID Additional Facility Rules means the Rules Governing the Additional Facility for the Administration of Proceedings by the Secretariat of the International Ce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

CITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on International Trade Law. Article 14 Proceedings under different international agreements 14.1 Where claims are brought pursuant to this Chapter and another international agreement and: (a) there is a potential for overlapping compensation; or (b) the other international claim could have a significant impact on the resolution of the claim brought pursuant to this Chapter, a Tribunal constituted under this Cha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

before the relevant domestic courts or administrative bodies of the Defending Party for the purpose of pursuing domestic remedies in respect of the same measure or similar factual matters for which a breach of this Treaty is claimed. Such claim before the relevant domestic courts or administrative bodies of the Defending Party must be submitted within one (1) year from the date on which the investor first acquired, or should have first acquired, knowledge of the measure in question and knowledg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hall not be applicable if the investor or the locally established enterprise can demonstrate that there are no available domestic legal remedies capable of reasonably providing any relief in respect of the same measure or similar factual matters for which a breach of this Treaty is claimed by the investor. 15.2 Where applicable, if, after exhausting all judicial and administrative remedies relating to the measure underlying the claim for at least a period of five years from the date on which the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alleged to have been breached and any other relevant provisions; demonstrate compliance with Article 15.1 and 15.2, where applicable; specify the relief sought and the approximate amount of damages claimed; and furnish evidence establishing that the disputing investor is an investor of the other Party. 15.4 For no less than six (6) months after receipt of the notice of dispute, the disputing parties shall use their best efforts to try to resolve the dispute amicably through meaningful consultati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cquired, or should have first acquired, knowledge of the measure in question and knowledge that the disputing investor with respect to its investment, had incurred loss or damage as a result; or (ii) where applicable, not more than twelve (12) months have elapsed from the conclusion of domestic proceedings pursuant to 15.1. (iii) the disputing investor or the locally established enterprise have waived their right to initiate or continue before any administrative tribunal or court under the law o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

w of any Party, or other dispute settlement procedures, any proceedings with respect to the measure of the Defending Party that is alleged to be a breach referred to in Article 13.2. (v) At least 90 days before submitting any claim to arbitration, the disputing investor has transmitted to the Defending Party a written notice of its intention to submit the claim to arbitration ( notice of arbitration ). The notice of arbitration shall: a. attach the notice of dispute and the record of its transmi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

an enterprise; d. specify the name of the arbitrator appointed by the disputing investor. Article 16 Submission of Claim to Arbitration 16.1 A disputing investor who meets the conditions precedent provided for in Article 15 may submit the claim to arbitration under: (a) the ICSID Convention, provided that both the Parties full members of the Convention; (b) the Additional Facility Rules of ICSID, provided that either Party, but not both, is a member of the ICSID Convention; or (c) the UNCITRAL A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s received by the Secretary-General of ICSID; or (c) the notice of arbitration given under the UNCITRAL Arbitration Rules is received by the Defending Party. 16.4 Delivery of notice and other documents on a Party shall be made to the Designated Representative for each Party. Article 17 Consent to Arbitration 17.1 Each Party consents to the submission of a claim to arbitration in accordance with the terms of this Agreement. 17.2 The consent given in Article 17.1 and the submission by a disputing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

w, or the resolution of disputes arising under international trade or international investment agreements. They shall be independent of, and not be affiliated with or take instructions from a disputing party or the government of a Party with regard to trade and investment matters. Arbitrators shall not take instructions from any organisation, government or disputing party with regard to matters related to the dispute. 18.2 One arbitrator shall be appointed by each of the disputing parties and th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

an arbitration submitted under the UNCITRAL Rules, the Secretary-General of the Permanent Court of Arbitration; Provided that if the appointing authority referred to is sub-paragraph (a) or (b) of Article 18.3 is a national of a Party, the appointing authority shall be in the following order: the President, the Vice-President or the next most senior Judge of the International Court of Justice who is not a national of either Party. 18.4 The appointing authority shall appoint in her/his discretio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es that may, in the eyes of the disputing parties, give rise to doubts as to her/his independence, impartiality, or freedom from conflicts of interest. This includes any items listed in Article 19.10 and any other relevant circumstances pertaining to the subject matter of the dispute, and to existing or past, direct or indirect, financial, personal, business, or professional relationships with any of the parties, legal counsel, representatives, witnesses, or co-arbitrators. Such disclosure shall .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

required shall be resolved in favour of such disclosure. 19.3 A disputing party may challenge an arbitrator appointed under this Treaty: (a) if facts or circumstances exist that may, in the eyes of the parties, give rise to justifiable doubts as to the arbitrator s independence, impartiality or freedom from conflicts of interest; or (b) in the event that an arbitrator fails to act or in the event of the de jure or de facto impossibility of the arbitrator performing his or her functions, Provided .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er Article 18.3. The notice of challenge shall state the reasons for the challenge. 19.5 When an arbitrator has been challenged by a disputing party, all disputing parties may agree to the challenge. The arbitrator may also, after the challenge, withdraw from his or her office. In neither case does this imply acceptance of the validity of the grounds for the challenge. 19.6 If, within 15 days from the date of the notice of challenge, the disputing parties do not agree to the challenge or the cha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to the arbitrator s lack of independence, impartiality, freedom from conflicts of interest, or ability to perform his or her role, in the eyes of an objective third party. 19.8 In any event where an arbitrator has to be replaced during the course of the arbitral proceedings, a substitute arbitrator shall be appointed or chosen pursuant to the procedure provided for in the Treaty and the arbitration rules that were applicable to the appointment or choice of the arbitrator being replaced. This pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

from conflicts of interest shall be deemed to exist on account of the following factors, including if: a. The arbitrator or her/his associates or relatives have an interest in the outcome of the particular arbitration; b. The arbitrator is or has been a legal representative/advisor of the appointing party or an affiliate of the appointing party in the preceding three (3) years prior to the commencement of arbitration; c. The arbitrator is a lawyer in the same law firm as the counsel to one of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

itrator is a manager, director or member of the governing body, or has a similar controlling influence by virtue of shareholding or otherwise in one of the parties; h. The arbitrator has publicly advocated a fixed position regarding an issue on the case that is being arbitrated. 19.11 The Parties shall by mutual agreement and after completion of their respective procedures adopt a separate code of conduct for arbitrators to be applied in disputes arising out of this Treaty, which may replace or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the ICSID Convention; or (b) the UNCITRAL Arbitration Rules if the arbitration is under those Rules. 20.2 Unless otherwise agreed by the disputing parties, the Tribunal may determine a place for meetings and hearings and the legal seat of arbitration. In doing so, the Tribunal shall take into consideration the convenience of the disputing parties and the arbitrators, the location of the subject matter, the proximity of the evidence, and give special consideration to the capital city of the Defen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hat a claim submitted by the investor is: (a) not within the scope of the Tribunal s jurisdiction, or (b) manifestly without legal merit or unfounded as a matter of law. 21.2 Such objection shall be submitted to the Tribunal as soon as possible after the Tribunal is constituted, and in no event later than the date the Tribunal fixes for the Defending Party to submit its counter-memorial (or, in the case of an amendment to the notice of arbitration, the date the Tribunal fixes for the Defending P .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

port of any claim in the notice of arbitration (or any amendment thereof). The Tribunal may also consider any relevant facts not in dispute. 21.4 The Tribunal shall issue an award under this Article no later than 150 days after the date of the receipt of the request under Article 21.2. However, if a Defending Party requests a hearing, the Tribunal may take an additional 30 days to issue the decision or award. 21.5 The Defending Party does not waive any objection as to competence or any argument .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

im by the disputing investor or the objection by the Defending Party was frivolous, and shall provide the disputing parties a reasonable opportunity to present its cases. Article 22 Transparency in arbitral proceedings 22.1 Subject to applicable law regarding protection of confidential information, the Defending Party shall make available to the public the following documents relating to a dispute under this Chapter: a. the notice of dispute and the notice of arbitration; b. pleadings and other .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e Tribunal shall make arrangements to hold in private that part of the hearing requiring such protection. b. The Tribunal shall make logistical arrangements to facilitate public access to hearings, including by organizing attendance through video links or such other means as it deems appropriate. However, the arbitral tribunal may, after consultation with the disputing parties, decide to hold all or part of the hearings in private where this becomes necessary for logistical reasons, such as when .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rmation. 22.4 The Non-disputing Party may make oral and written submissions to the Tribunal regarding the interpretation of this Treaty. Article 23 Burden of Proof and Governing Law 23.1 This Treaty shall be interpreted in the context of the high level of deference that international law accords to States with regard to their development and implementation of domestic policies. 23.2 The disputing investor at all times bears the burden of establishing: (a) jurisdiction; (b) the existence of an ob .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ples of public international law relating to the interpretation of treaties, including the presumption of consistency between international treaties to which the Parties are party; and (c) for matters relating to domestic law, the law of the Defending Party. Article 24 Joint Interpretations 24.1 Interpretations of specific provisions and decisions on application of this Treaty issued subsequently by the Parties in accordance with this Treaty shall be binding on tribunals established under this A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the joint interpretation of any provision of this Treaty that is subject of a dispute. The Parties shall submit in writing any joint decision declaring their interpretation to the Tribunal within sixty (60) days of the request. Without prejudice to the rights of the Parties under Article 24.1 and 24.2, if the Parties fail to submit a decision to the Tribunal within sixty (60) days, any interpretation issued individually by a Party shall be forwarded to the disputing parties and the Tribunal, w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

icle 26 Award 26.1 An award shall include a judgement as to whether there has been a breach by the Defending Party of any rights conferred under this Treaty in respect of the disputing investor and its investment and the legal basis and the reasons for its decisions. 26.2 The arbitral tribunal shall reach its decision by a majority of votes. Such decision shall be binding on both disputing parties to the arbitration. 26.3 A tribunal can only award monetary compensation for a breach of the obliga .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ages or any injunctive relief against either of the Parties under any circumstance. Article 27 Finality and enforcement of awards 27.1 An award made by a tribunal shall have no binding force except between the disputing parties and in respect of the particular case and the tribunal must clearly state those limitations in the text of the award. 27.2 Subject to Article 27.3, a disputing party shall abide by and comply with an award without delay. 27.3 A disputing party may not seek enforcement of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

roceeding to revise, set aside or annul the award, or (ii) a court has dismissed or allowed an application to revise, set aside or annul the award and there is no further appeal. 27.4. Each Party shall provide for the enforcement of an award in its territory in accordance with its law. 27.5 A claim that is submitted to arbitration under this Article shall be considered to arise out of a commercial relationship or transaction for purposes of Article I of the New York Convention. Article 28 Costs .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he Parties may by agreement or after the completion of their respective procedures regarding the enforcement of this Treaty may establish an institutional mechanism5 to develop an appellate body or similar mechanism to review awards rendered by tribunals under this chapter. Such appellate body or similar mechanism may be designed to provide coherence to the interpretation of provisions in this Treaty. In developing such a mechanism, the Parties may take into account the following issues, among o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sting domestic laws and international law on the enforcement of arbitral awards. Article 30 Diplomatic Exchange between Parties 30.1 If a disputing investor has commenced a dispute against a Defending Party under this Chapter, the Non-disputing Party shall not give diplomatic protection, or bring an international claim, in respect of such dispute between one of its investors and the Defending Party, unless the Defending Party has failed to abide by and comply with an award or the decisions of it .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ettlement Article 31 Disputes between Parties 31.1 Disputes between the Parties concerning: (i) the interpretation or application of this Treaty, or (ii) whether there has been compliance with obligations to consult in good faith under Articles 30 or 36, should, as far as possible, be settled through consultation or negotiation, which may include the use of non-binding third-party mediation or other mechanisms. 31.2 If a dispute between the Parties cannot be settled within six months from the ti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the date of appointment of the other two members. 31.4 If within the periods specified in Article 31.3 the necessary appointment(s) have not been made, either Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make any necessary appointment(s). If the President is a national of either Party or if he or she is otherwise prevented from discharging the said function, the Vice President shall be invited to make the necessary appointment(s) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rbitrator fees, expenses, allowances and other administrative costs. Each Party shall bear the cost of its representation in the arbitral proceedings. The Tribunal may, however, in its discretion direct that the entire costs or a higher proportion of costs shall be borne by one of the two disputing Parties and this determination shall be binding on both disputing Parties. 31.7 The Tribunal shall decide all questions relating to its competence and, subject to any agreement between the disputing P .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nconsistent with the provisions of this Agreement; (iv) protect and conserve the environment, including all living and non-living natural resources; (v) protect national treasures or monuments of artistic, cultural, historic or archaeological value. 32.2 Nothing in this Treaty shall apply to non-discriminatory measures of general application taken by a central bank or monetary authority of a Party in pursuit of monetary and related credit policies or exchange rate policies. This paragraph is wit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

33 Security Exceptions 33.1 Nothing in this Treaty shall be construed: (i) to require a Party to furnish any information, the disclosure of which it considers contrary to its essential security interests; or (ii) to prevent a Party from taking any action which it considers necessary for the protection of its essential security interests including but not limited to: (a) action relating to fissionable and fusionable materials or the materials from which they are derived; (b) action taken in time .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, requirement or measure including, without limitation, a requirement obtaining (or denying) any security clearance to any company, personnel or equipment; or (iii) to prevent a Party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security. 33.2 Each Party shall inform the other Party to the fullest extent possible of measures taken under Article 33.1 and of their termination. 33.3 Nothing in this Chapter sha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

accordance with the understanding of the Parties on security exceptions as set out in Annex 1, which shall form an integral part of this Treaty. Chapter VII: Final Provisions Article 34 Relationship with other Treaties 34.1 This Treaty or any action taken hereunder shall not affect the rights and obligations of the Parties under any other Agreements to which they are parties. 34.2 Any inconsistency, or question regarding the relationship between this Treaty and another bilateral agreement betwe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stment or investor that has been established or restructured with the primary purpose of gaining access to the dispute resolution mechanisms provided in this Treaty. Article 36 Consultations and Periodic Review 36.1 Either Party may request, and the other Party shall promptly agree to, consultations in good faith on any issue regarding the interpretation, application, implementation, execution or any other matter including, but not limited to: (i) reviewing the implementation of this Treaty; (ii .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ations of this Treaty, and adopting joint measures in order to improve the effectiveness of this Treaty. 36.3 The Parties shall meet every five years after the entry into force of this Treaty to consult and review the operation and effectiveness of this Treaty. Article 37 Amendments 37.1 This Treaty may be amended at any time at the request of either Party. The requesting Party must submit its request in written form explaining the grounds on which the amendment shall be made. The other Party sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and a tribunal award must be consistent with all amendments to this Treaty. Article 38 Entry into force, duration and termination 38.1 This Treaty shall be subject to ratification and shall enter into force on the date of exchange of instruments of ratification. 38.2 This Treaty shall remain in force for a period of ten years and shall lapse thereafter unless the Parties expressly agree in writing that it shall be renewed. This Treaty may be terminated anytime after its entry into force if eith .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

spective Governments, have signed this Treaty. Done at ____________on this ________ day of _________ in two originals each in the Hindi, English and (languages), all texts being equally authoritative. In case of any divergence in interpretation, the English text shall prevail. For the Government of the Republic of India For the Government of the Republic of ______ Annex 1: Security Exceptions The Parties confirm the following understanding with respect to interpretation and/or implementation of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, 1999 and the rules and regulations made thereunder. India shall, upon request by the other Party, provide information on the measures concerned; b. In the case of other Party - (ii) Where the Party asserts as a defence that conduct alleged to be a breach of its obligations under this Treaty is for the protection of its essential security interests protected by Article 33, any decision of such Party taken on such security considerations and its decision to invoke Article 33 at any time, whether .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version