The Permanent Court of International Justice applied the principle of res judicate while deciding the Chozow factory indemnity case.

Background:
The Chozow factory indemnity case was a dispute between Germany and Poland over the issue of compensation for damages caused by the German occupation of Poland during World War II. The Chozow factory, located in Poland, was destroyed by the German forces, and the Polish government sought compensation for the damages.

Principle of res judicata:
The principle of res judicata, also known as the rule of finality, is a legal doctrine that prevents the same matter from being relitigated between the same parties once a final judgment has been reached. It ensures that there is finality and certainty in legal proceedings, preventing the parties from repeatedly bringing the same case before the court.

Application of res judicata in the Chozow factory indemnity case:
In the Chozow factory indemnity case, the principle of res judicata was applied by the Permanent Court of International Justice. The court referred to a previous decision by the Mixed Arbitral Tribunal in the case between Germany and Poland, which had already determined the issue of compensation for war damages.

The Permanent Court of International Justice considered the previous decision as final and binding on the parties involved. The court held that the principle of res judicata prevented the parties from re-litigating the same issue and seeking a different outcome.

Reasoning behind applying res judicata:
The application of res judicata in this case was based on the need for finality and certainty in international legal proceedings. By upholding the previous decision, the court ensured that the matter was settled and could not be reopened.

Furthermore, the principle of res judicata promotes judicial efficiency by preventing the wasteful expenditure of time and resources on repetitive litigation. It encourages parties to accept and abide by the decisions of the court, fostering confidence in the international legal system.

Conclusion:
In the Chozow factory indemnity case, the Permanent Court of International Justice applied the principle of res judicata to uphold the finality and certainty of the previous decision made by the Mixed Arbitral Tribunal. This decision prevented the parties from re-litigating the issue of compensation for war damages, ensuring the efficient resolution of the dispute.