Sociology | Mercantile Law | International Law | International Relations

As far as the admissibility and rejection of a state’s claims in the matter of state responsibility are concerned then the International Law puts forward certain points on the basis of which a claim may be rejected.

A. Failure to Exhaust Local Remedies
The local remedies if are not exhausted by the state claiming for justice in a matter of state responsibility will not have its plea accepted.

B. Non-Compliance with Rules regarding Nationality
The case precedent in this regard is Nottebohm Case: Liechtenstein v. Guatemala (1955). In this case, Nottebohm born in Germany had nationality of two other states; one Liechtenstein and other Guatemala. His property was confiscated by Guatemala in the wake of world war two as he was a German. The matter when went to the ICJ, Liechtenstein proposed its diplomatic protection for him. But the court did not allow that holding that; “He had no genuine link with Liechtenstein.” Because all his life he lived in Guatemala, had business and property there and rarely visited the other state. So, the nationality active prevailed over the passive one.

In Case of Companies
Another case Barcelona Traction Case: Belgium v. Spain (1970) reflects that the rule of ‘Genuine Link’ does not apply in case of companies. An electric company working in Barcelona (Spain), have registered itself in Canada and carrying 88% shareholders from Belgium when came in some conflict with the Spanish state; the matter was taken to the ICJ when complaint was filed by Belgium on the behalf of shareholders. The ICJ held; “The argument that the company is registered in Canada with 88% shareholders in Belgium had a genuine link with it and which entitled it instead of Canada to launch a proceeding against Spain is not accepted.” The court further declared that; “Unlike the Nottebohm case, the party here have link with Canada as it’s incorporated in there.”

C. Unreasonable Time
A claim may be rejected if taken to the international tribunal beyond reasonable time limits specified for different cases.

INSULT TO THE STATE
Insulting a state either by dishonoring its flag or by any other means will also hold a state responsible under the International Law.