Israel's High Court of Justice will hear an appeal against the controversial "Boycott Law," on Wednesday, and decide whether to fulfill requests to issue an order nisi against it.

According to the law, which was passed in July last year, a person or an organization calling for the boycott of Israel, including the settlements, can be sued by the boycott's targets without having to prove that they sustained damage. The court will then decide how much compensation is to be paid. The second part of the law says a person or a company that declare a boycott of Israel or the settlements will not be able to bid in government tenders.

The appeal was submitted in March by a number of civil society and political organizations. Wednesday's session will be presided by Supreme Court President Asher Grunis, and Judges Esther Hayot and Yoram Danziger.

Those who submitted the appeal say that the law infringes on rights to freedom of expression, dignity and equality. "The law imposes a 'price tag' on legitimate political statements and hurts public debate, especially on the most burning and controversial issues," they claim.

They also claim that harsh punishments for violating the law have a "censorship effect" on those who wish to express a political opinion by calling for a boycott, and as such the law is damaging even before it is invoked against a particular individual or organization.

The appeal was submitted by attorneys Hassan Jabareen and Sawsan Zaher from the Adalah organization, and Dan Yakir from the Association of Civil Rights in Israel on behalf of the Public Committee Against Torture in Israel, the Israel Movement for Reform and Progressive Judaism, the Center for the Defense of the Individual, and the Yesh Din. The appeal was also presented on behalf of three Israeli organizations that support a general economic boycott against Israel in protest at the occupation: The Coalition of Women for Peace, The Follow-Up Committee on Arab Education – Israel, and The Jerusalem Legal Aid and Human Rights Center.

The bill faced broad criticism before it was approved by the Knesset in 2011, both nationally and internationally. It was the subject of U.S. and European Union criticism, among others.

Before it was passed, the Knesset's legal adviser, attorney Eyal Yanon, published a legal assessment saying parts of the law edge towards "illegality and perhaps beyond." He went on to warn that the law "damages the core of freedom of expression in Israel." Yanon's assessment contradicted that of Attorney General Yehuda Weinstein, who said the bill is legal.