USHA INDUSTRIES, INC Lawsuit v. Bosnia and Hercegovina dismissed
The Arbitration Tribunal dismissed the claimants` 30 million USD claims, filed against Bosnia and Hercegovina by Naween Aggarwall, Gupta Neete and their company USHA INDUSTRIES, INC, in relation to the claimant`s investment in the insurance company “Krajina osiguranje” a. d. Banja Luka. The claimants have been also ordered to bear part of the costs of the proceedings.
Naveen Aggarwall and Gupta Neete filed a Request for Arbitration against Bosnia and Hercegovina in September 2017, under the rules of UNCITRAL and in relation to Bilateral Investment Treaty between Bosnia and Hercegovina and India (BIT), claiming that the information about the insurance company “Krajina osiguranje” a. d. Banja Luka listed in the prospectus during the issues of shares they bought, was incorrect.
Regarding the Decision of the Arbitration Tribunal, the Ministry of Finance of Republika Srpska stated that they were very satisfied with the Decision of the Tribunal which ordered the claimant to pay the 1.1 million euros to the respondent. This Decision is proof that the institutions of Republika Srpska, primarily the Insurance Agency and the Securities Commission have complied with financial market regulations, applying best supervisory practices and timely adopting appropriate measures to protect the interests of their citizens.
It is also important to emphasize that there was no violation of the provisions of the Bilateral Investment Treaty between Bosnia and Hercegovina and India (BIT).
The UNCITRAL Tribunal consisted of:
Bernard Hanotiau (chair, appointed by co-arbitrator), Ian Laird (claimant`s appointee) and Bernardo Cremades (respondent’s appointee).
The claimants were represented by Baker McKenzie and Steptoe & Johnson, while the respondent were represented by Dimitrijević & Partners, Mikijelj Jankovic & Bogdanovic and MIM Law.