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Report No. 260

B. Article 14.1. Purpose

(i) Analysis and comment:

5.2.1 The provision may be construed as vague because it prohibits the use of the Investor-State Dispute Settlement (ISDS) mechanism to 'obtain money, property, or any other thing of value from the Host State, or otherwise compel the Host State to act or refrain from acting. The provision may also potentially cover the enforcement of awards that may penalize the Respondent State for violating a substantive provision, which would lead to a monetary award, and therefore violate this provision. It is likely that this provision may not be acceptable to countries on the other side of the negotiating table.

Analysis of the 2015 Draft Model Indian Bilateral Investment Treaty Back

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