43/1998 Coll.



Ministry of Foreign Affairs



Modified: 20/2011 Coll.



Ministry of Foreign Affairs declares that on 11 July. October 1996

Prague agreement signed between the Czech Republic and the Republic of India

the promotion and protection of investments.



Parliament gave its assent to the agreement the United States and the President of the

the Republic has ratified it. The instruments of ratification were exchanged in Delhi day

February 6, 1998.



Agreement entered into force, pursuant to article 15, the day of the 6. February

1998.



The Czech version of the agreement shall be published at the same time. In the English text of the agreement,

for its interpretation of the applicable, can be consulted at the Ministry of

Foreign Affairs and the Ministry of finance.



The AGREEMENT



between the Czech Republic and the Republic of India for the promotion and protection of

investment



Czech Republic and the Republic of India (hereinafter referred to as "the Contracting Parties");



Desiring to create favourable conditions to support larger investments

investors of one State in the territory of the other State;



Recognizing that the promotion and reciprocal protection of investments in accordance with this

the international agreement will contribute to stimulating individual business

initiatives and increase wealth in both countries;



have agreed upon the following:



Article 1



The definition of the



For the purposes of this agreement:



and the term "investor") means any natural or legal person,

that invests in the territory of the other Contracting Party.



(i) the notion of "natural person" means any natural person having a

the nationality of the Contracting Parties in accordance with its legal system.



(ii) the term "legal person" means, with regard to both parties

any person, including the business of the company, firm or partnership,

that has a permanent Office in the territory of one of the Contracting Parties and is

registered or established in accordance with its laws, regulations and recognised as

a legal entity.



(b)) "investment" means any pecuniary value based or

acquired in connection with economic activities by an investor of one Contracting

party to the territory of the other party, including changes in the form of investment, in

accordance with the legislation of the Contracting Party in whose territory the investment

located, and includes, in particular, but not limited to:



(i) movable and immovable property, as well as other rights such as mortgages,

the collateral or guarantees;



(ii) stocks, bonds and unsecured bonds by the company and any

other similar forms of participation in society;



(iii) cash claims or claims to any execution of the contract

arrangements having a financial value associated with an investment;



(iv) the rights of intellectual property, goodwill, technical procedures

and know-how in accordance with the relevant legislation of the Contracting Party;



(v) the right of trade concessions and licenses under the law, including the

concessions for the exploration and production of oil and other minerals.



(c)) "proceeds" means the monetary amount resulting from investments such as

profits, interest, capital gains, dividends, licensing, or other

fees.



(d)) "territory" means:



(i) with regard to the Czech Republic: the Czech Republic, on which

Czech Republic will, in accordance with international law, the sovereign

law and jurisdiction;



(ii) with regard to India: the territory of the Republic of India, including coastal waters

and airspace and other marine areas, including exclusive economic

zone and the continental shelf, over which the Republic of India

the sovereignty, sovereign rights or exclusive jurisdiction in accordance with the

its applicable law and the United Nations Convention on marine and

the international law of the sea, 1982.



Article 2



The promotion and protection of investments



(1) each Contracting Party shall encourage and create favourable conditions

for investors of the other Contracting Party, to invest in its territory, and

admit such investments in accordance with their national law and the competent

the framework laid down by the Government.



(2) investment and the returns of the investors of each Contracting Party the

all circumstances provided the proper and fair treatment and will be

enjoy full protection and security in the territory of the other Contracting Party.



Article 3



National treatment and MFN clause



(1) each Contracting Party shall provide the investments of investors of the other Contracting

the parties, including their operation, management, maintenance, use, use of

or the management of these investors, treatment no less favourable than those

provides for investments of its own investors or investments

investors of any third State.



(2) in addition, each Party shall provide to investors of the other Contracting

the parties and the proceeds of their investments treatment no less favourable than those

provides investors of any third State.



(3) the provisions of paragraphs (1) and (2) of this article shall not apply to

the benefits that provides Contracting Party on the basis of their obligations as

a member of any existing or future customs, economic or monetary

the Union, the common market or free trade zone.



(4) the obligations of the Contracting Parties as a member of the customs, economic or monetary

the Union, the common market or free trade area also include obligations

arising from an international treaty or agreement relating to the

This tariff, economic or monetary Union, a common market or zone

free trade.



(5) the provisions of paragraphs (1) and (2) of this article shall be interpreted so that the

one contracting party undertake to provide investors of the other Contracting

the parties or their investments, or the proceeds of such an advantage, preference

or privileges, which may provide the first Contracting Party on the basis of

any international agreement or arrangement relating wholly or

most taxation.



Article 4



The expropriation



(1) investments of investors of one or the other party will not be

nationalized, expropriated or subjected to measures having similar effect

as nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the

the other Contracting Parties with the exception of expropriation in the public interest, the

under the law, on a non-discriminatory basis and against the proper and fair

the refund. Such compensation will be equal to the value of the expropriated investments

immediately before the expropriation or before the intended expropriation became

publicly known, whichever occurs sooner, will include interest at

the proper and fair amount of data into the payment of the refund, will be carried out without

undue delay, it will be immediately realizable and freely transferable

in freely convertible currency.



(2) The investor has the right to request, in accordance with the legislation of the Contracting

the party vyvlastnila, to review the investment of their case and the

evaluate your investments judicial or other independent authority of the Contracting

Parties in accordance with the principles contained in this article. Contracting Party,

that makes the expropriation, will make every endeavour to ensure that the review

the procedure was carried out immediately.



(3) where a Contracting Party expropriates the assets of a company,

which it is registered or established in accordance with the law in force in

any part of its territory, and in which investors of the other Contracting Parties

own shares, the Contracting Party shall ensure that the provisions of paragraph 1

This article will apply to these investors with regard to their

the investment, to the extent necessary to ensure the proper and fair

the refund.



Article 5



Compensation for damage



(1) to investors of one Contracting Party whose investments in the territory of the other

the Contracting Parties will suffer damage due to war or other armed

the conflict, a State of emergency or civil unrest, or other

similar events on the territory of the other Contracting Party, it shall provide the second

Contracting Party, as regards restitution, indemnification, compensation or other

settlement, treatment no less favourable than that which will provide their own

investors or to investors of any third State. The resulting payments

will be freely transferable in freely convertible currency.



(2) Notwithstanding the provisions of paragraph 1 of this article will be to investors of one

the Contracting Parties, who in any event referred to in

the preceding paragraph suffered damage in the territory of the other Contracting Party

consisting of:



) and seize their assets, by the armed forces or by an

the other Contracting Party, or



(b)) the destruction of their property by the armed forces or by the official authorities of the other

the Contracting Parties, which was not due to combat action or not

invoked when the necessity of the situation,

granted restitution or fair and reasonable compensation for damage

suffered during or as a result of the destruction of the expropriation of property. The resulting payments

will be freely transferable without delay in freely convertible currency.



Article 6



Transfers of investments and income



(1) each Contracting Party shall ensure the free transfer of all financial

the funds of the investor of the other Contracting Parties which are associated with

investment and income in its territory, without undue delay and to

non-discriminatory basis. These funds include e.g.:



and) capital and additional amounts to maintain and enlarge the investment;



b) net operating profits after tax, including dividends and interest, to the extent

the corresponding share in the company, license fees, and any other

revenue;



(c)) the amounts of the loans, including interest on loans related to

investment;



(d) revenues received by an investor from) the sale or partial sale or

liquidation of the investment;



(e) State) income of citizens of one party who are working in relation


the investment in the territory of the other Contracting Party.



(2) Anything from what is stated in paragraph 1 of this article shall not affect the

conversion of any refunds in accordance with article 5 of this agreement.



(3) unless the parties agree otherwise, the transfer payments referred to in paragraph 1

This article will be effected in the currency of the original investment or in any

Another freely convertible currency. Transfer payments will be effected on the basis of

the conversion rate, which is the prevailing market exchange rate valid at the date of

the conversion.



(4) Nothing in this Agreement shall prevent any Contracting Party

accept or maintain in good faith and in a fair and non-discriminatory

way of security measures for a limited duration, that can

be taken in exceptional circumstances when the occurrence or threat of serious

macroeconomic problems or serious trouble with the balance of payments, the Contracting

the parties or the customs, economic or monetary Union, common market, zone

free trade or regional economic organization which the Contracting

the party is or may become a member.



Article 7



Assignment of rights



If a Contracting Party or its designated agency to guarantee compensation

against non-commercial risks related to the investment of any of its

investors in the territory of the other party, and carried out the payment in such a

investors with respect to their claims arising out of this agreement, the second

the Contracting Party agrees that the Contracting Party or its designated

the Agency is entitled to by virtue of subrogation to exercise the rights and

to claim these investors. Our rights and remedies

do not exceed the rate of indigenous rights or claims of the investors.



Article 8



The settlement of disputes between an investor and a Contracting Party to



(1) any dispute between an investor of one Contracting Party and other Contracting

party relating to the investment of the investor will be addressed pursuant to this agreement,

If possible, friendly negotiations between the parties to the dispute.



(2) if such dispute has not been resolved amicably within six months from the

written notice of the claim, may be referred to the decision: in accordance with the

the legal order of the Contracting Parties, that investment has admitted to the competent

Court, administrative, or arbitration body, whose final decision

will be binding; or, Alternatively, under any of the following

procedures:



and) international conciliation in accordance with the rules of the Peace Commission

The United Nations for international commercial law;



(b) the International Centre) settlement of investment disputes, if

the Contracting Party of the investor and the other party are both members of the Convention on

settlement of investment disputes between States and nationals of other States, 1965;



(c) ad hoc arbitration tribunal), one of the parties to the dispute in accordance with the

Arbitration rules of the United Nations Commission for

international business law, 1976, in accordance with the following modifications:



(i) the Authority for the appointment in accordance with article 7 of these rules will be the Chairman,

the Deputy Chairman or senior judge of the International Court of

the Court who is not a citizen of any of the Contracting Parties. The third arbitrator

It will not be a citizen of any of the Contracting Parties.



(ii) the Parties shall appoint their arbitrator within two months.



(iii) the Arbitration Tribunal shall state the basis on which decided, at the request of

any party decisions.



(3) the Arbitral Award shall be final and binding.



Article 9



The resolution of disputes between the Contracting Parties



(1) disputes between the Contracting Parties concerning the interpretation or application of this

the agreement should be, if possible, resolved by negotiations and

to the consultation.



(2) if the dispute cannot be resolved within a period of six months from the

the time of its inception, will be at the request of one of the Contracting Parties

submitted to the Court of arbitration.



(3) the arbitral tribunal shall be established for each individual case in the following

follows: Each Contracting Party shall designate one arbitrator, within two

months from receipt of the request for arbitration. These two arbitrators then

Select a citizen of a third State, that will be with the consent of both Contracting

party appointed Chairman of the Court. The Chairman shall be appointed within two months

from the date of the appointment of the two arbitrators.



(4) If in any of the periods referred to in paragraph 3 of this article has not been

the necessary appointment, any Contracting Party may, if it is not

unless otherwise agreed, to invite the President of the International Court of Justice, to

made the necessary appointment. If the President is a citizen of one of the Contracting

Parties, or for any other reason unable to perform this operation, it will be necessary

the appointment of the Vice-President asked. If it is also Vice-Chair of the citizen

some Contracting Parties to enforce this Act or not, will be on the implementation of

the necessary appointment asked senior member of the international

of the Court who is not a citizen of any of the Contracting Parties.



(5) the arbitral tribunal adopts its decisions by majority vote. Such

the decision is binding on both Contracting Parties. Each Contracting Party shall

only the costs are borne by its own arbitrator and its participation in the arbitration proceedings;

the costs of the Chairman and the remaining costs will be borne by the Contracting Parties

equally. The arbitral tribunal may by decision determine that higher part

the costs will be paid by one of the Contracting Parties, and this decision will be

be binding on both Contracting Parties. The arbitral tribunal shall determine its own rules

rules.



Article 10



The entry and residence of workers



Contracting Party, in accordance with their respective applicable laws

relating to the entry and stay of foreign citizens, enables

individuals and employees of companies of the other party's input and

to remain in its territory for the purposes of employment in activities

associated with investments.



Article 11



Application of the legislation



Unless otherwise agreed in this agreement, all investments will be

governed by the law in force in the territory of the Contracting Party in whose territory they are

the investment made.



Article 12



Essential security interests



Nothing in this Agreement shall be interpreted so that it is prevented from

any of the Contracting Parties to accept in good faith the steps that

considers it necessary to protect its essential security interests,

or that it is prevented from taking the measures arising from the membership of the Contracting

Parties in any existing or future customs, economic or monetary

Union, common market or free trade zone. These steps, or

the measures may include in particular, but not exclusively, such:



(a) relating to criminal offences;



(b) relating to the traffic in arms, ammunition and military resources

and trade in other goods, materials, services, and technologies that

It is carried out, directly or indirectly, with the aim of supplying military forces, or



(c) taken in time of war or in time of emergencies in the

international relations, or



(d) adopted, in accordance with its obligations under the Charter of the UNITED NATIONS to the maintenance of

international peace and security.



Article 13



The Scope Of The Agreement



This agreement shall apply to all investments made by investors of one

Contracting Party in the territory of the other Contracting Party, admitted in accordance with the

its legal order, whether they were made before or after this

the agreement enters into force. The provisions of this Agreement shall not apply to any dispute,

claim or conflict arising before the entry into force of this agreement.



Article 14



The use of other provisions



If a provision of the law of a Contracting Party or obligations

under international law existing at present or

based in the future between the parties, outside of this agreement, contain

rules, General or specific, entitling investments by investors of a Contracting

Parties to a more favourable treatment than that provided by this

Agreement, then these rules prevail not before long over this agreement, to the extent

which are more favourable.



Article 14bis



Mutual consultation



The Contracting Parties may consult each other in case of necessity

matters relating to any changes to this agreement. The changes will be

made after the agreement and shall enter into force on the date of receipt of the last

notification by the Contracting Parties reported that their national

procedures for entry into force of such amendments have been completed and shall remain in

force for the duration of the agreement.



Article 15



Entry into force



This agreement is subject to ratification and shall enter into force on the date of the exchange of

instruments of ratification.



Article 16



Term and termination



(1) this Agreement shall remain in force for a period of ten years, and then will be

considered to be in force for automatically extended unless one of the

contracting party notifies the other party of its intention to

terminate the agreement. This agreement will terminate one year from

the date of receipt of the written notification.



(2) Notwithstanding the termination of this agreement under paragraph 1

This article, the agreement shall remain effective for a further period of 15 years from the date of

their validity with regard to investments made or acquired prior to

on the date of termination of this agreement.



In witness whereof the undersigned, duly authorised thereto, have signed this agreement.



Done in Prague on 11. October 1996, in duplicate in the Czech,

Hindi and English languages, all texts being equally authentic. In

the case of any discrepancy the English version is decisive.



For the Czech Republic:



Ing. Ivan Kočárník, CSc. v. r.



Deputy Prime Minister and Minister of finance



For the Republic of India:



Bolla Buli Ramayah in r.



State Minister of trade