Islamabad says the treaty remains binding and enforceable, while India rejects the court's jurisdiction and its order challenging the pact's suspension.
MEA says the World Bank-constituted body was formed in breach of the treaty and its ruling will have no effect on India's projects or its decision to keep the pact in abeyance.
India has stated that the treaty can no longer function in its present form and will remain in abeyance until Pakistan "credibly and irrevocably" ends its support for cross-border terrorism.
Sources said India honoured the treaty even during wars, while Pakistan repeatedly challenged hydropower projects, including Salal, Baglihar, Kishanganga, Ratle and Pakal Dul.
Earlier, Japan and India called for urgent global action against all UN-listed terrorist groups and their proxies, specifically naming LeT, JeM, Al Qaeda and ISIS.
The MEA rejected Defence Minister Khwaja Asif’s comments linking water security to war, accusing Islamabad of diverting attention from human rights abuses and governance failures in PoK.
