Abstract

This paper focuses on the settlement of investment disputes between States. There are numerous ways to handle the legal issues which arise from investment practices. This paper mainly deals with the areas of state-investor dispute settlement from the point of view of the state as well as the investor. How the venues for the dispute settlement are decided and how the disputes are resolved in accordance with Alternative Dispute Resolution (ADR) mechanisms. These third-party resolution procedures help to gain the trust of the investor and also create a space for a fair process of settling these disputes. On the other hand, there are some countries that have been following the old tradition where foreign investors are not allowed to go for the methods of dispute settlement and are only entitled to resolve their disputes through the judiciary system or the national courts of the country. This paper will further discuss the various options that are there when a dispute settlement is considered in international investment agreements. The inclusion of dispute settlement procedures can be omitted in investment agreements, the reference of a dispute settlement approach can be based upon the consent of the disputing parties and can come under the jurisdiction of the courts and tribunals. The choice offered to the disputing parties makes it easier for them to choose an approach whether national or international, in cases that are exceptional, a dispute can be compulsorily referred to as an international mode of dispute settlement

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