Abstract

This research paper deals with the concept of international arbitration and the necessity of the requirement of international laws to bring a State or a State entity as a party to the arbitration and thus covering the void of bringing the above-mentioned entities into a liability. Global diplomacy is the widespread solution that is used by countries to settle a dispute. There are certain cases where this fails. The State appears in front of the International courts to settle these disputes. The International Chamber of Commerce has its system and rules set for international arbitration where the State or a State entity can be a party. The gap between ‘the effectiveness of this setup being under the radar of doubt’ and ‘the antagonizing principle of Westphalia Sovereignty of the nations’ when the State or State entities are the parties in an International arbitral proceeding is researched and found. The results of this study are crucial to implementing effective measures in international arbitral proceedings to bring the states and state entities into the umbrella of liability. The status quo is widely discussed by analysing contemporary incidents and the findings are used to try and prove the requirement of a more effective mechanism of arbitration by abiding by the principles of international law.

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