UK instituted proceedings 26 may 1951, challenging the legality of the Iranian Oil Nationalisation Act 1951, such Act resolved that the oil industry throughout all parts of the country, without exception should be nationalised. The oil industry consisted only of the Company (discriminatory?)
Art 22 of the concession provided for arbitration of ‘any differences between the parties of any nature whatever’ and stated that award must be based on juridical principles contained in 38 PCIJ
UK claimed illegality because lack of adequate (value of the taking at them moment of dispossession plus interest), prompt (immediate payment in cash) and effective (recipient must be able to make use of it) compensation
Iran rejected totally to arbitrate claiming that the annulment of the concession implied abrogating of any obligation to arbitrate
The UK claimed that a concession granted to the Company by Persia in 1933, was a treaty (UK government was the major shareholder of the company). The court held that since the concession was not an agreement between two states, it was not a treaty and then, declined jurisdiction.
Here the mainline jurisdiction was based on the mutual acceptances of the compulsory jurisdiction.
On June 22 1951 provisional measures were asked: to permit the company extracting oil. An order giving them was issued on July 5 1951.