Arathi B, School of law, Christ (Deemed to be) University
ABSTRACT
The Investment Treaty Arbitration commonly referred to as Investor-State Dispute Settlement (ISDS), is used to settle disputes between a foreign investor and the host State. India made the reservation that the New York Convention only applies to the recognition and enforcement of awards made in the territory of another contracting state under the Convention and only to disputes arising out of legal relationships, whether contractual or not, that are considered "commercial" under Indian law when it acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York Convention).
The Bilateral Investment Treaty was largely created to protect the investments that various nations had made. The BITs provide a means to address disputes that arise throughout the lifetime of the investment, rather than providing security for the investments like insurance coverage.
Due to India's extensive network of International Investment Treaty (IITs), and the extent of India’s FDI to reach global heights, it is important that there is an investor-state treaty arbitration to resolve disputes between foreign investors and India, the problem of ITA decisions' enforcement in India has gained significance. More precisely, any investor-state disagreement will make the situation worse for developing nations like India, which have already been severely impacted economically by the pandemic.
Keywords: Arbitration, Investment Treaty, Investor-State Dispute, Bilateral Investment Treaty.
