3.5. pants
nosaka divas situācijas. Pirmā ir tiešā

ekspropriācija, kad ieguldījums ir nacionalizēts vai savādāk

tieši ekspropriēts, formāli mainot īpašumtiesības vai pilnīgi

konfiscējot.

4. Otra situācija, kas tiek noteikta 5. pantā, ir netiešā

ekspropriācija, kad Līgumslēdzējas puses pasākumam vai pasākumu

kopumam ir tiešajai ekspropriācijai līdzvērtīgs efekts bez

formālas īpašumtiesību maiņas vai pilnīgas konfiskācijas.

(a) Lai konstatētu vai pasākums vai pasākumu kopums konkrētā

faktiskā situācijā veido netiešo ekspropriāciju, nepieciešams uz

faktiem balstīta katra konkrētā gadījuma izpēte, kas starp citiem

faktoriem ietver:

(i) valdības pasākuma ekonomisko ietekmi, lai gan viens

vienīgs fakts, ka Līgumslēdzējas puses pasākumam vai pasākumu

kopumam ir nelabvēlīgs efekts uz ieguldījuma ekonomisko vērtību,

nenosaka, ka ir notikusi netiešā ekspropriācija;

(iii) pakāpi kādā valdības pasākums kavē noteiktu, saprātīgu

uz ieguldījuma atdevi balstītu prognozi; un

(iii) valdības pasākuma raksturu.

(b) Valdības vai valdības kontrolē esošo iestāžu pasākumi, kas

tiek pieņemti normālas uzņēmējdarbības aktivitāšu ietvaros, nav

uzskatāmi par netiešo ekspropriāciju, ja vien tie acīmredzami

(prima facie) netiek pieņemti ar mērķi radīt nelabvēlīgu efektu

uz ieguldījuma ekonomisko vērtību.

(c) Izņemot atsevišķus gadījumus, Līgumslēdzējas puses

nediskriminējoši regulatorie pasākumi, kas ir izveidoti un

piemēroti, lai likumīgi aizsargātu sabiedrības labklājības

mērķus, tādus kā sabiedrības veselība, drošība un vide, neveido

netiešo ekspropriāciju.

LATVIJAS REPUBLIKAS

VALDĪBAS VĀRDĀ

Artis Kampars

Ekonomikas ministrs

INDIJAS REPUBLIKAS

VALDĪBAS VĀRDĀ

Anands Šarma

Tirdzniecības un rūpniecības ministrs

AGREEMENT

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF LATVIA AND THE

GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE PROMOTION AND

PROTECTION OF INVESTMENTS

The Government of the Republic of Latvia and the Government of

the Republic of India (hereinafter referred to as the

"Contracting Parties");

Desiring to create conditions favourable for fostering greater

investment by investors of one Contracting Party in the territory

of the other Contracting Party;

Recognising that the encouragement and reciprocal protection

of investments of investors of one Contracting Party in the

territory of the other Contracting Party on a non discriminatory

basis under international agreement will be conducive to the

stimulation of individual business initiative and will increase

prosperity in the territory of both Contracting Parties;

Have agreed as follows:

ARTICLE 1

Definitions

For the purposes of this Agreement:

(a) "investment" means every kind of asset established or

acquired including changes in the form of such investment, in

accordance with the national laws and regulations of the

Contracting Party in whose territory the investment is made and

in particular, though not exclusively, includes:

(i) movable and immovable property as well as other rights

such as mortgages, liens or pledges;

(ii) shares in and stock and debentures of a company and any

other similar forms of participation in a company;

(iii) rights to money or to any performance under contract

having a financial value;

(iv) intellectual property rights, in accordance with the

relevant laws and regulations of the respective Contracting

Parties;

(v) business concessions conferred by law or under contract,

including concessions to search for and extract oil and other

minerals;

(b) "investor" means any natural or juridical person who has

made investment in the territory of the other Contracting

Party:

(i) "natural person" means:

in respect of the Republic of Latvia: a citizen or non-citizen

in accordance with the laws and regulations of the Republic of

Latvia;

in respect of the Republic of India: persons deriving their

status as Indian nationals from the law in force in India;

(ii) "juridical person" means:

in respect of the Republic of Latvia: commercial company

(partnership or capital company), association and foundation

incorporated or constituted in accordance with the laws and

regulations of the Republic of Latvia, whether or not for

profit;

in respect of the Republic of India: any entity that is

incorporated, constituted, set up or otherwise duly organized

under the law in force in any part of India; whether or not for

profit, whether privately or otherwise owned, with limited or

unlimited liability, including any corporation, company,

association, partnership, trust, joint venture, co-operatives or

sole proprietorship;

(c) "returns" means the monetary amounts yielded by an

investment such as profit, interest, capital gains, dividends,

royalties and fees;

(d) "territory" means:

(i) in respect of Latvia: the land territory, internal waters

and territorial sea of the Republic of Latvia and the airspace

above it, as well as the maritime zones beyond the territorial

sea, including the seabed and subsoil, over which the Republic of

Latvia exercises sovereign rights or jurisdiction in accordance

with its national laws in force and international law, for the

purpose of exploration and exploitation of the natural resources

of such areas;

(ii) in respect of India: the territory of the Republic of

India including its territorial waters and the airspace above it

and other maritime zones including the Exclusive Economic Zone

and continental shelf over which the Republic of India has

sovereignty, sovereign rights or exclusive jurisdiction in

accordance with its laws in force, the l982 United Nations

Convention on the Law of the Sea and International Law.

ARTICLE 2

Scope of the Agreement

This Agreement shall apply to all investments made by

investors of either Contracting Party in the territory of the

other Contracting Party, accepted as such in accordance with its

laws and regulations, whether made before or after the coming

into force of this Agreement, but shall not apply to any dispute

concerning an investment which arose, or any claim which was

settled before its entry into force.

ARTICLE 3

Promotion and Protection of Investment

(1) Each Contracting Party shall encourage and create

favourable conditions for investors of the other Contracting

Party to make investments in its territory, and admit such

investments in accordance with its laws and regulations.

(2) Investments and returns of investors of each Contracting

Party shall at all times be accorded fair and equitable treatment

in the territory of the other Contracting Party.

(3) A Contracting Party shall, subject to its laws, accord

within its territory protection and security to investments and

shall not impair the management, maintenance, use, enjoyment or

disposal of investments.

ARTICLE 4

National Treatment and Most-Favoured-Nation Treatment

(l) Each Contracting Party shall accord to investments of

investors of the other Contracting Party, treatment which shall

not be less favourable than that accorded either to investments

of its own or investments of investors of any third State,

whichever is more favourable.

(2) In addition, each Contracting Party shall accord to

investors of the other Contracting Party, including in respect of

returns on their investments, treatment which shall not be less

favourable than that accorded to investors of any third

State.

(3) The provisions of paragraph (1) and (2) above shall not be

construed so as to oblige one Contracting Party to extend to the

investors of the other Contracting Party and to their investments

and returns on investments the present or future benefit of any

treatment, preference or privilege resulting from:

(a) any membership in a free trade area, customs union,

monetary union, common market and any international agreement

resulting in similar arrangements, or

(b) any international agreement or arrangement or, domestic

legislation relating wholly or mainly to taxation.

ARTICLE 5

Expropriation

(1) Investments of investors of either Contracting Party shall

not be nationalised, expropriated or subjected to measures having

effect equivalent to nationalisation or expropriation

(hereinafter referred to as "expropriation") in the

territory of the other Contracting Party except for a public

purpose in accordance with law on a non-discriminatory basis and

against fair and equitable compensation. Such compensation shall

amount to the fair market value of the investment expropriated

immediately before the expropriation or before the impending

expropriation became public knowledge, whichever is the earlier,

shall include interest at the normal market rate until the date

of payment, shall be made without unreasonable delay, be

effectively realizable and be freely transferable.

(2) The investor affected shall have

right, under the law of the Contracting Party making the

expropriation, to review, by a judicial or other independent

authority of that Contracting Party, of his or its case and of

the valuation of his or its investment in accordance with the

principles set out in this Article. The Contracting Party making

the expropriation shall make every endeavour to ensure that such

review is carried out promptly.

(3) Where a Contracting Party

expropriates the assets of a company which is incorporated or

constituted under the law in force in any part of its own

territory, and in which investors of the other Contracting Party

own shares, it shall ensure that the provisions of paragraph (1)

of this Article are applied to the extent necessary to ensure

fair and equitable compensation in respect of their investment to

such investors of the other Contracting Party who are owners of

those shares.

ARTICLE 6

Compensation for Losses

Investors of one Contracting Party whose investments in the

territory of the other Contracting Party suffer losses owing to

war or other armed conflict, a state of national emergency or

civil disturbances in the territory of the latter Contracting

Party shall be accorded by the latter Contracting Party

treatment, as regards restitution, indemnification, compensation

or other settlement, no less favourable than that which the

latter Contracting Party accords to its own investors or to

investors of any third State, whichever is more favourable.

Resulting payments shall be freely transferable.

ARTICLE 7

Transfers

(l) Each Contracting Party shall permit all funds of an

investor of the other Contracting Party related to an investment

in its territory to be freely transferred, without unreasonable

delay and on a non-discriminatory basis. Such funds may

include:

(a) Initial capital and additional

capital amounts used to maintain and increase investments;

(b) Net operating profits including

dividends and interest in proportion to their share-holdings;

(c) Repayments of any loan including interest thereon,

relating to the investment;

(d) Payment of royalties and services fees relating to the

investment;

(e) Proceeds from sales of their shares;

(f) Proceeds received by investors in case of sale or partial

sale or liquidation;

(g) The earnings of natural persons of one Contracting Party

who work in connection with investment in the territory of the

other Contracting Party.

(2) Nothing in paragraph (l) of this Article shall affect the

transfer of any compensation under Article 6 of this

Agreement.

(3) Unless otherwise agreed to between the parties, currency

transfer under paragraph (1) of this Article shall be permitted

in the currency of the original investment or any other freely

convertible currency. Such transfer shall be made at the

prevailing market rate of exchange on the date of transfer.

ARTICLE 8

Subrogation

Where one Contracting Party or its designated agency has

guaranteed any indemnity against non-commercial risks in respect

of an investment by any of its investors in the territory of the

other Contracting Party and has made payment to such investors in

respect of their claims under this Agreement, the other

Contracting Party agrees that the first Contracting Party or its

designated agency is entitled by virtue of subrogation to

exercise the rights and assert the claims of those investors. The

subrogated rights or claims shall not exceed the original rights

or claim of such investors.

ARTICLE 9

Settlement of Disputes Between an Investor and a Contracting

Party

(1) Any dispute between an investor of one Contracting Party

and the other Contracting Party in relation to an investment of

the former under this Agreement shall, as far as possible, be

settled amicably through negotiations between the parties to the

dispute.

(2) If the dispute has not been settled within six months from

the date on which it was raised in writing, the dispute may, at

the choice of investor, be submitted:

(a) to the competent courts of the Contracting Party in whose

territory the investment is made; or

(b) to arbitration under the International Centre for

Settlement of Investment Disputes between States and Nationals of

other States, opened for signature at Washington on

18th March, 1965 (hereinafter referred to as the

"Centre') provided that both the disputing Contracting Party and

the Contracting Party of the investor are parties to the ICSID

Convention; or

(c) to arbitration under the Additional Facility of the

Centre, provided that either the disputing Contracting Party or

the Contracting Party of the investor is a party to the ICSID

Convention; or

(d) to any ad-hoc arbitration tribunal which unless otherwise

agreed on by the parties to the dispute, is to be established

under the Arbitration Rules of the United Nations Commission on

International Trade Law (UNCITRAL) with the following

modifications:

(i) The appointing authority under Article 7 of the Rules

shall be the President, the Vice-President or the next senior

Judge of the International Court of Justice, who is not a

national of either Contracting Party. The third arbitrator shall

not be a national of either Contracting party.

(ii) The parties shall appoint their respective arbitrators

within two months.

(iii) The arbitral award shall be made in accordance with the

provisions of this Agreement.

(3) The arbitral tribunal shall state

the basis of its decision and give reasons upon the request of

either party.

(4) The arbitration award shall be

final and binding upon both parties to the dispute. Both

Contracting Parties shall commit themselves to the enforcement of

the award.

(5) If either Party submits a dispute for resolution under

paragraph 2(a), it shall be precluded from invoking the procedure

under paragraph 2(b), 2(c) or 2(d) and vice-versa.

(6) Neither of the Contracting Parties, which is a Party to a

dispute, can raise an objection, at any phase of the arbitration

procedure or of the execution of an arbitral award, on account of

the fact that the investor, which is the other Party to the

dispute, has received an indemnification covering a part or the

whole of its losses by virtue of an insurance.

ARTICLE l0

Settlement of Disputes between the Contracting Parties

(1) Disputes between the Contracting Parties concerning the

interpretation or application of this Agreement should, as far as

possible, be settled through negotiation.

(2) If a dispute between the Contracting Parties cannot thus

be settled within six months from the time the dispute arose, it

shall upon the request of either Contracting Party be submitted

to an arbitral tribunal.

(3) Such an arbitral tribunal shall be constituted for each

individual case in the following way. Within two months of the

receipt of the request for arbitration, each Contracting Party

shall appoint one member of the tribunal. Those two members shall

then select a national of a third State who on approval by the

two Contracting Parties shall be appointed Chairman of the

tribunal. The Chairman shall be appointed within two months from

the date of appointment of the other two members.

(4) If within the periods specified

in paragraph (3) of this Article the necessary appointments have

not been made, either Contracting Party may, in the absence of

any other agreement, invite the President of the International

Court of Justice to make any necessary appointments. If the

President is a national of either Contracting Party or if he is

otherwise prevented from discharging the said function, the Vice

President shall be invited to make the necessary appointments. If

the Vice President is a national of either Contracting Party or

if he too is prevented from discharging the said function, the

Member of the International Court of Justice next in seniority

who is not a national of either Contracting Party shall be

invited to make the necessary appointments.

(5) The arbitral tribunal shall reach its decision by a

majority of votes. Such decisions shall be binding on both

Contracting Parties. Each Contracting Party shall bear the cost

of its own member of the tribunal and of its representation in

the arbitral proceedings; the cost of the Chairman and the

remaining costs shall be borne in equal parts by the Contracting

Parties. The tribunal may, however, in its decision direct that a

higher proportion of costs shall be borne by one of the two

Contracting Parties, and this award shall be binding on both

Contracting Parties. The tribunal shall determine its own

procedures.

ARTICLE 11

Entry and Sojourn of Personnel

A Contracting Party shall, subject to its laws and regulations

relating to the entry and sojourn of foreign nationals, permit

natural persons of the other Contracting Party and personnel

employed by companies of the other Contracting Party to enter and

remain in its territory for the purpose of engaging in activities

connected with investments.

ARTICLE 12

Applicable Laws

(1) Except as otherwise provided in this Agreement, all

investment shall be governed by the laws and regulations in force

in the territory of the Contracting Party in which such

investments are made.

(2) Notwithstanding paragraph (1) of

this Article nothing in this Agreement precludes the host

Contracting Party from taking action for the protection of its

essential security interests or in circumstances of extreme

emergency in accordance with its laws normally and reasonably

applied on a non discriminatory basis.

ARTICLE l3

Application of other Rules

If the provisions of law of either Contracting Party or

obligations under international law existing at present or

established hereafter between the Contracting Parties in addition

to the present Agreement contain rules, whether general or

specific, entitling investments by investors of the other

Contracting Party to a treatment more favourable than is provided

for by the present Agreement, such rules shall to the extent that

they are more favourable prevail over the present Agreement.

ARTICLE l4

Entry into Force

Each Contracting Party shall notify

the other in writing of the completion of the procedures required

by its law for bringing this Agreement into force. The Agreement

shall enter into force on the thirtieth day following the date of

receipt of the last notification.

ARTICLE l5

Duration and Termination

(1) This Agreement shall remain in force for a period of ten

years and thereafter it shall be deemed to have been

automatically extended unless either Contracting Party gives to

the other Contracting Party a written notice of its intention to

terminate the Agreement. The termination of this Agreement shall

become effective twelve months after the date of receipt of such

written notice by the other Contracting Party.

(2) Notwithstanding termination of this Agreement pursuant to

paragraph (1) of this Article, the Agreement shall continue to be

effective for a further period of fifteen years from the date of

its termination in respect of investments made or acquired before

the date of termination of this Agreement.

(3) The Protocol shall form an integral part of the

Agreement.

In witness whereof the undersigned, duly authorised thereto by

their respective Governments, have signed this Agreement.

Done at New Delhi on this 18th February 2010 in two

originals each in the Latvian, Hindi and English languages, all

texts being equally authentic.

In case of any divergence, the English text shall prevail.

For the Government

of the Republic of Latvia

Artis Kampars

For the Government

of the Republic of India

Shri Anand Sharma

PROTOCOL

TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF LATVIA

AND THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE PROMOTION AND

PROTECTION OF INVESTMENTS

On the signing of the Agreement between the Government of the

Republic of Latvia and the Government of the Republic of India

for the Promotion and Protection of Investments, the undersigned

representatives have agreed on the following provisions which

constitute an integral part of the Agreement:

Ad Article 1

The Republic of India takes note of the statement of the

Republic of Latvia that the term "non-citizens" referred to in

Article 1, paragraph (b)(i), means a person who, in accordance

with the Law on Status of Those Former U.S.S.R. Citizens Who Do

Not Have Citizenship Of Latvia Or That of any Other State, has a

right to a non-citizen passport issued by the Republic of

Latvia.

Ad Article 5

1. Article 5 (Expropriation) is intended to reflect customary

international law concerning the obligation of States with

respect to expropriation.

2. An action or a series of actions by a Contracting Party

cannot constitute an expropriation unless it interferes with a

tangible or intangible property right or property interest in an

investment.

3. Article 5 addresses two situations. The first is direct

expropriation, where an investment is nationalized or otherwise

directly expropriated through formal transfer of title or

outright seizure.

4. The second situation addressed by Article 5 is indirect

expropriation, where an action or series of actions by a

Contracting Party has an effect equivalent to direct

expropriation without formal transfer of title or outright

seizure.

(a) The determination of whether an action or series of

action, in a specific fact situation, constitutes an indirect

expropriation requires a case-by-case, fact based inquiry that

considers, among other factors:

(i) the economic impact of the governmental action, although

the fact that an action or series of actions by a Contracting

Party has an adverse effect on the economic value of an

investment, standing alone, does not establish that an indirect

expropriation has occurred;

(ii) the extent to which the government action interferes with

distinct, reasonable investment-backed expectations; and

(iii) the character of the government action.

(b) Actions by a Government or Government controlled bodies,

taken as a part of normal business activities, will not

constitute indirect expropriation unless it is prima facie

apparent that it was taken with an intent to create an adverse

impact on the economic value of an investment.

(c) Except in rare circumstances, non-discriminatory

regulatory actions by a Contracting Party that are designed and

applied to protect legitimate public welfare objectives, such as

public health, safety, and the environment, do not constitute

indirect expropriation.

For the Government

of the Republic of Latvia

Artis Kampars

For the Government

of the Republic of India

Shri Anand Sharma