Pakistan, Sept. 1 -- India's attempt to place the Indus Waters Treaty in "abeyance" suffered a sweeping legal setback on Monday as a Hague-based Court of Arbitration unanimously ruled that the 1960 water-sharing pact remains fully in force, rejected every ground capable of justifying its unilateral suspension or termination and separately ordered restrictions on construction of India's Ratle hydroelectric project.

The Court issued two decisions on August 31 (an Award on the Status of the Indus Waters Treaty and an Order on Interim Measures concerning the Ratle Hydro-Electric Plant) in proceedings brought by Pakistan under Article IX and Annexure G of the treaty. The Permanent Court of Arbitration acts as secretariat for the proceedings....