India must limit work on an hydroelectric plant in the Kashmir region and uphold a water-sharing treaty with Pakistan it suspended over tensions with its neighboring country, the Permanent Court of Arbitration said on Monday.

For all the latest headlines follow our Google News channel online or via the app.The Hague-based court said the Indus Water Treaty between the two countries remained fully in force, as India had no justification for ending or suspending the agreement.

Pakistan government said it welcomed the court’s order.

India, however, dismissed the ruling.

“India categorically rejects its so-called award, just as it has firmly rejected all prior pronouncements by this illegally constituted body,” the foreign ministry said in a statement.