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Permanent Court Of Arbitration – What Is It?

Permanent Court Of Arbitration - What Is It?

If your fight happened with the neighbors, so what are the options available to you to solve the problem or to find out the solution. The world has this option and that is The Permanent Court of Arbitration. In the world, there are different countries and if some problems are occurred in between these countries then the Permanent Court of Arbitration is the Court available for the countries/world for the interest of Justice. Let us see all about the Permanent Court of Arbitration.

ENRICA LEXIE Case:- It Is Italian Sheep Case

• According to India, the incident in question concerns the killing of two Indian fishermen onboard an Indian vessel named the “St. Antony”, and India’s subsequent exercise of jurisdiction. It is alleged that the two Italian marines aboard the “Enrica Lexie” killed the fishermen.

• Italian authorities maintained that India lacked jurisdiction in judging the case, since, based on the Enrica Lexie positional records, the ship was outside the Indian SAUDI territorial waters, and well in the international navigation area.

•Furthermore, they maintained that India lacked jurisdiction for arresting the two marines, since they were on an Italian ship in international waters, charged with security duties. As such, they were military personnel on duty in defense of a part of the national territory, and could not be considered terrorists or being accused of murder. India countered that if the marines were on military duty and had killed unarmed civilians they could be charged with war crimes under the Geneva convention and murder was the lesser charge.

•Vodafone Group Plc. entered India in 2007 through a subsidiary based in the Netherlands, which acquired Hutch is now Vodafc Hutchison Telecommunications International Ltd’s (HTIL) stake in Hutchison Essar Ltd (HEL) -the joint venture that held and operated telecom licenses in India. This Cayman Islands transaction, along with several related agreements, gave Vodafone control over 67% of HEL and extinguished Hong Kong-based Hutchison’s rights of control in India, a deal that cost the world’s largest telco 11.2 billion at the time.

•In 2012, India changed its Income Tax Act retroactively and made sure that any company, in similar circumstances, is not able to avoid tax by operating out of tax – havens like the Cayman Islands or Lichtenstein. In May 2012, Indian authorities confirmed that they were going to charge Vodafone about 20,000 crores (US $ 3.3 billion) in taxes and fines.

• Fifteen years ago, in 2006-2007, Cairn UK had, as part of an internal rearrangement process, transferred shares of Cairn India Holdings to Cairn India. Income – Tax authorities then decided that since Cairn UK had made capital gains, it ought to pay capital gains tax up to Rs 24,500 crore.

•The company interpreted Indian laws on capital gains differently and refused to pay. Several rounds of litigation at the Income – Tax Appellate Tribunal (ITAT) and the High Court followed. Cairn lost the case at ITAT; A case on the valuation of capital gains is pending before the Delhi High Court.

• While Cairn Energy sold the majority of its India business, Cairn India, to mining giant Vedanta in 2011, income-tax authorities barred it from selling about 10 percent, citing pending taxation issues. The payment of dividends by Cairn India to Cairn Energy was also frozen.

•2 On 2 July 2020, the Permanent Court of Arbitration recognized the functional immunity of the two Italian marines, noting that they were engaged in a mission on behalf of the Italian Government, and thus ruled that the process continued in Italy. However, Italy was required to find an agreement with India in order to compensate for the two deaths and for the physical and moral damages suffered by the crew members and the vessel.

•Cairn Energy took the case to arbitration in 2015 to fight against demand in 2014 from the Indian income tax department for Rs 102 billion rupees ($ 1.4 billion) in taxes that it said were owed on capital gains related to the 2007 listing of its Indian unit.

•The tribunal ruled unanimously that India had breached its obligations to Cairn Energy under the UK India Bilateral Investment Treaty and awarded the firm damages of Rs 10,247 crore ($ 1.2 billion). plus interest and costs.

Permanent Court Of Arbitration - What Is It?

                                                                Permanent Court Of Arbitration – What Is It?


• Permanent Court of Arbitration The PCA is the oldest institution for international dispute resolutions. It was established in 1899 and is headquartered in The Hague, Netherlands.

•Purpose: It is an intergovernmental organization dedicated to serving the international community in the field of dispute resolution and facilitating arbitration and other forms of dispute resolution between States.

PERMANENTE COURT OF ARBITRAGE MDCCCXCIXThe Permanent Court of Arbitration (PCA) is an intergovernmental organization located in The Hague, Netherlands. It is not a court in the traditional sense but provides services of arbitral tribunal to resolve disputes that arise out of international agreements between member states, international organizations, or private parties.

•The cases span a range of legal issues involving territorial and maritime boundaries, sovereignty, human rights, international investment, and international and regional trade. The PCA is constituted through two separate multilateral conventions with a combined membership of 122 states.

• The organization is not a United Nations agency, but the PCA is an official United Nations Observer.

• The PCA is not a court in the conventional understanding of that term but an administrative organization with the object of having permanent and readily available means t serve as the registry for purposes of international arbitration and other related procedures, including commissions of inquiry and conciliation.

•The judges’ arbitrators that hear cases are called Members of the Court. Each member state may appoint up to four known competencies in questions of international law, of the highest moral reputation and disposed to accept the duties of arbitrators “for a renewable 6 – year term.

• The PCA sometimes gets confused with the International Court of Justice Justice, which has its seat in the same building. The PCA is however not part of the UN system, although it does have observer status in the UN General Assembly since 1993.

•Arbitration between two states takes place when two member states of the PCA decide to submit a dispute for arbitration to a PCA Tribunal. The tribunal consists of 5 arbitrators, two of which are selected by each party to the arbitration (and one of whom may be a national of the party concerned). The four arbitrators choose the fifth and presiding arbitrator.

Diference between ICJ, ICC, PCA(Permanant Court of Arbitration).

ICJ (International Criminal Court of Justice) – Established under UN Charter 1945 (which also established UNSC) to act as a principal Judicial organ of UN-  Headquarter of it in Hague, The Netherland. – Members of UN automatically  becomes the member of  ICJ.-  It is Civil Court. – ICJ settles legal disputes between Nations only. ICJ settle disputes on issues of Sovereignty, trade, treaty, violations and interpretations, etc.

ICC (International Criminal Court)– It IS PCA (Permanent Court of Arbitration) – It set up under Rome Statute in 1998.  The head quarter of ICC is in Hague, the Natherland.- Tha nations have to sign and ratify the Rome Statute to become the member of ICC. It is Criminal Court. ICC tries individual only for the crimes like Genocide, war crimes, crimes of aggression and crimes against humanity.

PCA (Permanent Court Of Arbitration) – Permanent Court of Arbitration established by the Convention for the pacific settlement of international disputes, concluded at the Hague in 1989, and the convention revised in second Hague peace Conference in 1907. – headquarters of the Permanent Court of Arbitration is in Hague, The Netherlands. The nations have to sign and ratify any one of the above conventions to become a member of the Permanent Court of Arbitration. Permanent Court of Arbitration Arbitration tribunal.

A permanent court of Arbitration settles disputes between member states. International organizations or private parties like territorial and maritime disputes, sovereignty, human rights, International investments, regional trade, etc.

A Case tried by the Permanent Court of Arbitration

•Bangladesh went in for arbitration over the delimitation of maritime boundary under the United Nations Convention on the Law of the Sea (UNCLOS) on October 8, 2009.

•The argument focussed on issues including the location of the land boundary terminus, delimitation of the territorial sea, exclusive economic zone, and the continental shelf within and beyond 200 nautical miles.

• dispute regarding the delimitation of the maritime boundary between India and Bangladesh was delivered on Monday, with a United Nations tribunal awarding Bangladesh 19,467 sq. km of the 25,602 sq. km sea area of ​​the Bay of Bengal.

•The tribunal verdict is binding on all parties and there is no option for appeal.

Vinayak Damodar Savarkar Case Tried By Permanent Court Of Arbitration

In 1910-11, in the Minto Marley Reforms Savarker had given some agitations. At that time Savarker was caught in France by Britain. France had made a case in the Permanent Court of Arbitration at that time and said that Britain did not have the right to take Savarkar. The judgment of the Permanent Court of Arbitration went in favor of Britain. PCA held that Britain has not forcibly caught Savarkar, Coastal officers of France handed over the Savarkar to the Britishers.

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