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UNIQUE IDENTIFICATION CODE – ‘’PD201904”

INTERNATIONAL COURT OF JUSTICE

REPORTS OF JUDGEMENTS
ADVISORY OPINIONS AND ORDERS

POWER PLANT CASE


(REPUBLIC OF REYNES Vs. REPUBLIC OFANVILLANIA)

COUR INTERNATIONAL DE JUSTICE

RECEUEIL DES ARRETS

AVIS CONSULATIES ET ORDONNANCES

AFFAIRE DES POTENTIA HERBA


Official Citation

Power Plant Case

(Reynes v. Anvillania)

Judgement

ICJ Report

Sales Number
NO de vendre
INTERNATIONAL COURT OF JUSTICE

POWER PLANT CASE

(Reynes V. Anvillania)

Question of jurisdiction and admissibility - Analysis of claims on the basis of


application and determination of objects of claim.
Power of court to interpret submissions
Principle of good faith

JUDGEMENT

In Power Plant Case


Between
Reynes
And
Anvillania
THE COURT,
Composed above
delivers the following judgement

The ICJ has the jurisdiction over this issue between the Republic of Reynes and the Republic
of Anvillania as according to Section 36(6) of the Statute of the International Court of Justice,
the ICJ shall have jurisdiction and the court will decide as ICJ have jurisdiction or not.

The Anvillania an Reynes also member states of preferential trade agreement known as Treaty
of Co-operation in Trade and Commerce (TCTC), signed between the 7 developed and
developing countries in the year 2000, in which the members have agreed to prefer any dispute
arising between them on the question of law relating to trade and commerce to International
Court of Justice.

Both Reynes and Anvillania have agreed to the jurisdiction of the International Court of Justice,
but later on Anvillania raised and objection now stating that the matter should be first referred
to the domestic court, as it is not appropriate as all nations have certain obligations and duties
which they have accepted, cannot renounce later.

The Reynes Renew Power Company Limited(RRPCL) and it’s investment in the territory of
Anvillania has not fallen within the definition of investor and investment as the Republic of
Anvillania has a certain restrictions like High tariff, that is why investment has not been made,
thus, it does not come under the definition of investment.

The imposition of safeguard duty by Anvillania through it’s department of Commerce and
Industry to protect domestic industries has imposed 25 percent safeguard duty on imported
sonar panels is against the principle of Most Favoured Nations(MFN) and National
Treatment9NT) as the duty imposed are making the imported sonar panels very expensive and
thus, the Agni Power Project cannot survive. As both the countries are the members and parties
to General Agreement On Tarrifs and Trade(GATT) in which MFN and NT are enshrined and
the imposition of safeguard duty is against it as the objection raised by Anvillania that
imposition is for the public interest is inappropriate as it is Nuclear Armed State and it does not
produce such of those things as solar panels and domestic industries are not of such nature in
Anvillania.
The restrictions on environment clearance are against the bilateral agreement between the
parties as Neer Power initiated work on December 2015 carrying out preliminary survey and
studies, acquiring land and identifying the relevant rehabilitation scheme for affected area.

The work came to stop by the activist group MY NATION is inappropriate and against the
principles as building dam and producing hydro power cannot affect the climate, environment
and affect land use, homes and natural habitants in the area of the dam.

Hence, it will improve the quality of people near to that area as it will provide energy in many
forms.

The measures on the part of Republic of Anvillania is against the principles of MOST
FAVOURED NATION (MFN) and NATIONAL TREATMENT (NT) under GATT but they
are also against the promise which was been made between the parties for mutual cooperation
and preferential treatment as agreed upon in the Treaty of Cooperation in Trade and Commerce
(TCTC) and the BIT.

The actions on part of Anvillania has not amounted to expropriation as what they did was just
to save their domestic industry and economy but Republic of Reynes can ask for compensation
and Anvillania is liable to pay damages to Reynes as both Agni Power and Neer Power has
been layed un-operated and Renew Power has suffered loss on daily basis.

The Government of Anvillania has asserted that RRPCL is aggrieved then it should explore
dispute settlement options provided in the BIT signed between the two countries.

However, BIT specifies exhaustion of domestic remedies clause which RRPCL cannot afford
is correct as 5 years exhaustion of domestic remedies clause is not appropriate as exhaustion
of remedy clause is totally against the principle of natural justice as you cannot give some
remedy after a great lapse of time and exhaustion of this clause is irrelevant.

Thus, Anvillania has to pay damages for loss incurred by Reynes.

The court held that, Anvillania safeguard duty and environmental restrictions are inappropriate
and Anvillania has to remove them.

The Agni power and Neer power should start it’s operation after the removal of safeguard duty
and environmental restriction which are against MFN and Anti under GATT.

The court orders the Republic of Reynes to provide effective rehabilitation scheme for the
affected area and to provide every locals of that area good and precise settlement area to live.
The court orders Anvillania to pay the damages / Compensation to Republic of Reynes as they
have incurred great loss due to un-operation of Agni power and Neer power projects.

For these reasons –

The court finds claim of Republic of Reynes are right and Republic of
Anvillania has to obey the courts order.

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