ABSTRACT
In the international investment regime (as is the case in most municipal legal systems as well), any encroachment of an investor’s right to enjoyment of his or her property or investment by the government of the host state should necessarily be followed by compensating the same. 1 As in most legal propositions, there is a dispute with this as well. The dispute in this particular case is regarding what factors need to be considered in order to classify an act/policy of the host state as an expropriation, thereby entitling the investor to compensation while the remaining can be put in the category of ‘regulation’ to prevent giving rise to any liability for the host state.
