RESPONDENT’S COUNTERCLAIMS ARE NOT ADMISSIBLE BEFORE THE TRIBUNAL Sample Clauses

RESPONDENT’S COUNTERCLAIMS ARE NOT ADMISSIBLE BEFORE THE TRIBUNAL. 163. In its Answer, Respondent attempts to assert counterclaims and hold Claimant liable for environmental pollution. Respondent requests USD 150,000,000 compensation for the alleged damages caused by Claimant through the contamination of the Xxxx River. Respondent bases its demands on the alleged breach of Article 9(2) BIT. However, Respondent’s counterclaims are inadmissible before the Tribunal and should not be examined on the merits. 164. Respondent invokes the SCC Rules as an adequate basis to assert its counterclaims. However, contrary to Respondent’s assertion, arbitration rules by themselves cannot create a jurisdiction to hear counterclaims201. In investment arbitration two requirements need to be fulfilled for counterclaims to be admissible: the parties must consent to the admissibility of counterclaims and the counterclaims need to have a factual and juridical connection to the primary claim.202 165. In this case, Xxxxxxxxxx’s counterclaims are inadmissible as Xxxxxxxx did not consent to admit counterclaims (A).
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