Name – Riddhi Kapadni

Class – TY LLB

Subject – Alternative Dispute Resolution

Challenges for Bilateral Investment Treaties and Issues Related to

Investment Arbitration

Abstract

This paper outlines some procedural challenges that emerge primarily in investment disputes,
i.e. treaty-based arbitration against states, and which concern special due process prerogatives
conjured up by the respondent state and actions unique to a state that may amount to a misuse
of its powers and jeopardise the arbitral procedure's integrity. It contends that investment treaty
arbitration is unequal in nature, with treaty nations wielding excessive power in comparison to
private litigants. When used incorrectly, such capabilities have the potential to undermine the
principle of the equality of arms in arbitration. In such a case, the arbitral tribunal has a duty to
vigorously seek to re-establish the equality of arms harmed by abuse of government authority.
The concept of inherent powers is important to fulfilling the tribunal's obligation to restore
equality of weapons.