Problem with Parallel Proceedings and Need for Embodying the Principles of Lis Pendens and Res Judicata in International Investment Arbitration

Parallel proceedings in investor-state Arbitration is an issue that is emerging at large and creating hindrance in the dispute resolution process. Parallel proceedings in the international regime are possible because the international laws do not provide for the applications of the principles of Res Judicata and Lis pendens as compared to domestic laws. Most countries are able to deal with the problem of parallel proceedings by restricting the parties to bring the same case in two different forums by applying the principles of Res Judicata and Lis pendens. The emerging cases dealing with parallel proceedings has now necessitated an urgent need to embody these principles in the international investment era as well. Apart from the principles, consolidation of the two simultaneous arbitration proceedings is also a convincing solution to prevent multiple proceedings on the same subject matter. In this paper, I have dealt with the causes and problems of parallel proceedings. The preventive and procedural measures to be taken to avoid parallel proceedings are suggested in this paper.