CASIRJ Volume 8 Issue 8 [Year - 2017] ISSN 2319 – 9202 International Research Journal of Commerce Arts and Science http://www.casirj.com Page 150 International Institutions and Dispute Settlement: The Case of ICSID Nitesh Kumar Srivastava 1 * Prof. (Dr.) R. L. Koul 2 ** Abstract: Disputes between States belong to the realm of Public International Law. These disputes are often resolved by two basic techniques of conflict management: diplomatic procedures and adjudication. For this purpose, Public International Law discusses matters as the law of international organisations, the law of treaties, human rights, humanitarian law, international courts, etc. However, where the State exercises a commercial function, either by itself or through a State entity and entersinto a business relationship with a private party, any disputes which arise are likely to be referred either to the courts of the State concerned or to international commercial arbitration. Almost invariably, the private party to such a contract will prefer arbitration as it is a „neutral‟ process. Keywords: arbitration in disputes between States and private parties, International Centre for the Settlement of Disputes (ICSID) Introduction: Disputes between States belong to the realm of Public International Law. These disputes are often resolved by two basic techniques of conflict management: diplomatic procedures and adjudication. 3 For this purpose Public International Law discusses matters as the law of international organisations, the law of treaties, human rights, humanitarian law, international courts, etc. However, where the State exercisesa commercial function, either by itself or through 1 Nitesh Kumar Srivastava is a PhD Scholar at Amity University NOIDA, Uttar Pradesh. This article is an outcome of his research that he is pursuing for PhD degree under the guidance of ProfR.L.Koul.. 2 Prof.R.L.Koul is a Professor at Amity University NOIDA,He is the guide of Nitesh Kumar Srivastava. 3 Malcolm N Shaw, International Law, (Cambridge, New York, 5th ed, 2003).