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Diplomatic Protection Of Investor As A Rule Of Customary International Investment Law

Mrinal Aiyappa, Symbiosis Law School, Pune


International investment contains specialised legal rules distinct from investments within a State. The reason is that international investment operates between States and in international practice, an individual or a corporation cannot bring an action against a State.1 The legal regime of international investments therefore, is centred around the protection of investors’ interests and the investor’s State of nationality’s relation with the host State. State practice recognises three routes for the protection of the investor’s interests:

(i) Remedy in private international law: By way of a contract between the investor and the host State stipulating the investor’s duties, liabilities and right to sue the host State;

(ii) Remedy in Treaty: By way of a Bilateral investment Treaty between the investor’s State of Nationality and host State, providing for a right to sue between the States; and

(iii) Remedy in Customary International law: By way of Diplomatic Protection in the absence of the above-mentioned recourses, where the State of Nationality represents its national’s interest against the host State.


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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