♤ Rationale for a BIT?

o It was in 2011 that India faced its first adverse arbitral award arising out of a BIT in the White Industries case, an Australian firm that succeeded in obtaining a foreign arbitral award against Coal India Ltd. White Industries argued that it had been denied “effective means” of enforcing its rights in relation to its investment, a protection incorporated into the India-Australia BIT by virtue of an MFN clause it contained. Since then 17 firms including Vodafone have issued notices for arbitration against India. For instance, Vodafone’s retrospective tax amendment case and Telenor, whose investment in India was in 2G licences that stood cancelled pursuant to a Supreme Court order.