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Flecha and Tuphs are two sovereign independent states which, in 2995, concluded a treaty to facilitate the joint construction of hydro-electric dams on the Lauterpacht

Flecha and Tuphs are two sovereign independent states which, in 2995, concluded a treaty to facilitate the joint construction of hydro-electric dams on the Lauterpacht River, which marks the common boundary between the two States, in order to meet the present and future energy requirements to facilitate the rapid industrialization for the mutual socio-economic benefit of the two States. The treaty did not contain any provision regarding its termination. In January 1997,Flecha faced with a lot of opposition from local and international NGO's concerned about the environmental impacts of the project, suspended the works .Flecha also argued that the suspension of the works was a matter of necessity for the state .

Tuphs rejected Flecha's grounds for suspension of the works unilaterally proceeding with the execution of the works and ended up diverting the waters of the Lauterpacht River into a bypass canal in its own territory .Flecha then claimed the rights to terminate the treaty arguing that Tuphs had violated the treaty by undertaking unilateral works, culminating the diversion of the Lauterpacht River. On learning that the Republic of Flecha's declaration filed under the statute of the international court of justice accepting the court's jurisdiction has not been withdrawn, the Republic of Tuph's did in January 2000, file a suit in the international court of justice seeking inter alia; a declaration that the republic of flecha actions aforesaid violate international law and a determination that the republic of flecha is liable for losses incurred by the republic of Tuphs and order payment of reparation .

The Republic of Flecha, contest the claim on the grounds that its actions did not invoke its international responsibility as alleged or at all as they were legitimate and justified under international law. Both Flecha and Tuphs are parties to the Vienna Convention on the Law of Treaties and a part from the above referred treaty ,neither of them is a party or signatory to any other treaty relevant to this case.

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