MT
Third Schedule — ARBITRATION ACT
Third Schedule · ARBITRATION ACT
Amended by
XVIII. 1999.32.
CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES
BETWEEN STATES AND NATIONALS OF OTHER STATES
(WASHINGTON 1965)
Preamble
The Contracting States
Considering the need for international co-operation for economic development,
and the role of private international investment therein;
Bearing in mind the possibility that from time to time disputes may arise in
connection with such investment between Contracting States and nationals of other
Contracting States;
Recognising that while such disputes would usually be subject to national legal
processes, international methods of settlement may be appropriate in certain cases;
Attaching particular importance to the availability of facilities for international
conciliation or arbitration to which Contracting States may submit such disputes if
they so desire;
Desiring to establish such facilities under the auspices of the International Bank
for Reconstruction and Development;
Recognising that mutual consent by the parties to submit such disputes to
conciliation or to arbitration through such facilities constitutes a binding agreement
which requires in particular that due consideration be given to any recommendation
of conciliators, and that any arbitral award be complied with; and
Declaring that no Contracting State shall by the mere fact of its ratification,
acceptance or approval of this Convention and without its consent be deemed to be
under any obligation to submit any particular dispute to conciliation or arbitration;
Have agreed as follows
CHAPTER I
INTERNATIONAL CENTRE FOR SETTLEMENT OF
INVESTMENT DISPUTES
SECTION 1
Establishment and Organisation
ARTICLE I
(1) There is hereby established the International Centre for Settlement of
Investment Disputes (hereinafter called the Centre).
(2) The purpose of the Centre shall be to provide facilities for conciliation and
arbitration of investment disputes between Contracting States and nationals of other
ARBITRATION
Contracting States in accordance with the provisions of this Convention.
ARTICLE 2
The seat of the Centre shall be at the principal office of the International Bank for
Reconstruction and Development (hereinafter called the Bank). The seat may be
moved to another place by decision of the Administrative Council adopted by a
majority of two-thirds of its members.
ARTICLE 3
The Centre shall have an Administrative Council and a Secretariat and shall
maintain a Panel of Conciliators and a Panel of Arbitrators.
SECTION 2
The Administrative Council
ARTICLE 4
(1) The Administrative Council shall be composed of one representative of each
Contracting State. An alternate may act as representative in case of his principal’s
absence from a meeting or inability to act.
(2) In the absence of a contrary designation, each governor and alternate
governor of the Bank appointed by a Contracting State shall be ex officio its
representative and its alternate respectively.
ARTICLE 5
The President of the Bank shall be ex officio Chairman of the Administrative
Council (hereinafter called the Chairman) but shall have no vote. During his absence
or inability to act and during any vacancy in the office of President of the Bank, the
person for the time being acting as President shall act as Chairman of the
Administrative Council.
ARTICLE 6
(1) Without prejudice to the powers and functions vested in it by other
provisions of this Convention, the Administrative Council shall
(a) adopt the administrative and financial regulations of the Centre;
(b) adopt the rules of procedure for the institution of conciliation and
arbitration proceedings;
(c) adopt the rules of procedure for conciliation and arbitration proceedings
(hereinafter called the Conciliation Rules and the Arbitration Rules);
(d) approve arrangements with the Bank for the use of the Bank’s
administrative facilities and services;
(e) determine the conditions of service of the Secretary-General and of any
Deputy Secretary-General;
(f) adopt the annual budget of revenue and expenditures of the Centre;
ARBITRATION
(g) approve the annual report on the operation of the Centre.
The decisions referred to in subparagraphs (a), (b), (c) and (f) above shall be
adopted by a majority of two-thirds of the members of the Administrative Council.
(2) The Administrative Council may appoint such committees as it considers
necessary.
(3) The Administrative Council shall also exercise such other powers and
perform such other functions as it shall determine to be necessary for the
implementation of the provisions of this Convention.
ARTICLE 7
(1) The Administrative Council shall hold an annual meeting and such other
meetings as may be determined by the Council, or convened by the Chairman, or
convened by the Secretary-General at the request of not less than five members of
the Council.
(2) Each member of the Administrative Council shall have one vote and, except
as otherwise herein provided, all matters before the Council shall be decided by a
majority of the votes cast.
(3) A quorum for any meeting of the Administrative Council shall be a majority
of its members.
(4) The Administrative Council may establish, by a majority of two-thirds of its
members, a procedure whereby the Chairman may seek a vote of the Council without
convening a meeting of the Council. The vote shall be considered valid only if the
majority of the members of the Council cast their votes within the time limit set by
the said procedure.
ARTICLE 8
Members of the Administrative Council and the Chairman shall serve without
remuneration from the Centre.
SECTION 3
The Secretariat
ARTICLE 9
The Secretariat shall consist of a Secretary-General, one or more Deputy
Secretaries-General and staff.
ARTICLE 10
(1) The Secretary-General and any Deputy Secretary-General shall be elected
by the Administrative Council by a majority of two-thirds of its members upon the
nomination of the Chairman for a term of service not exceeding six years and shall
be eligible for re-election. After consulting the members of the Administrative
Council, the Chairman shall propose one or more candidates for each such office.
(2)
The offices of Secretary-General and Deputy Secretary-General shall be
ARBITRATION
incompatible with the exercise of any political function. Neither the Secretary-
General nor any Deputy Secretary-General may hold any other employment or
engage in any other occupation except with the approval of the Administrative
Council.
(3) During the Secretary-General’s absence or inability to act, and during any
vacancy of the office of Secretary-General, the Deputy Secretary-General shall act
as Secretary-General. If there shall be more than one Deputy Secretary-General, the
Administrative Council shall determine in advance the order in which they shall act
as Secretary-General.
ARTICLE 11
The Secretary-General shall be the legal representative and the principal officer
of the Centre and shall be responsible for its administration, including the
appointment of staff, in accordance with the provisions of this Convention and the
rules adopted by the Administrative Council. He shall perform the function of
registrar and shall have the power to authenticate arbitral awards rendered pursuant
to this Convention, and to certify copies thereof.
SECTION 4
The Panels
ARTICLE 12
The Panel of Conciliators and the Panel of Arbitrators shall each consist of
qualified persons, designated as hereinafter provided, who are willing to serve
thereon.
ARTICLE 13
(1) Each Contracting State may designate to each Panel four persons who may
but need not be its nationals.
(2) The Chairman may designate ten persons to each Panel. The persons so
designated to a Panel shall each have a different nationality.
ARTICLE 14
(1) Persons designated to serve on the Panels shall be persons of high moral
character and recognised competence in the fields of law, commerce, industry or
finance, who may be relied upon to exercise independent judgement. Competence in
the field of the law shall be of particular importance in the case of persons on the
Panel of Arbitrators.
(2) The Chairman, in designating persons to serve on the Panels, shall in
addition pay due regard to the importance of assuring representation on the Panels of
the principal legal systems of the world and of the main forms of economic activity.
ARTICLE 15
(1)
Panel members shall serve for renewable periods of six years.
ARBITRATION
(2) In case of death or resignation of a member of a Panel, the authority which
designated the member shall have the right to designate another person to serve for
the remainder of that member’s term.
(3) Panel members shall continue in office until their successors have been
designated.
ARTICLE 16
(1)
A person may serve on both Panels.
(2) If a person shall have been designated to serve on the same Panel by more
than one Contracting State, or by one or more Contracting States and the Chairman,
he shall be deemed to have been designated by the authority which first designated
him or, if one such authority is the State of which he is a national by that State.
(3) All designations shall be notified to the Secretary-General and shall take
effect from the date on which the notification is received.
SECTION 5
Financing the Centre
ARTICLE 17
If the expenditure of the Centre cannot be met out of charges for the use of its
facilities, or out of other receipts, the excess shall be borne by Contracting States
which are members of the Bank in proportion to their respective subscriptions to the
capital stock of the Bank, and by Contracting States which are not members of the
Bank in accordance with rules adopted by the Administrative Council.
SECTION 6
Status, Immunities and Privileges
ARTICLE 18
The Centre shall have full international legal personality. The legal capacity of
the Centre shall include the capacity
(a)
to contract;
(b)
to acquire and dispose of movable and immovable property;
(c)
to institute legal proceedings.
ARTICLE 19
To enable the Centre to fulfil its functions, it shall enjoy in the territories of each
Contracting Centre the immunities and privileges set forth in this Section.
ARTICLE 20
The Centre, its property and assets shall enjoy immunity from all legal process,
ARBITRATION
except when the Centre waives this immunity.
ARTICLE 21
The Chairman, the members of the Administrative Council, persons acting as
conciliators or arbitrators or members of a Committee appointed pursuant to
paragraph (3) of Article 52, and the officers and employees of the Secretariat
(a) shall enjoy immunity from legal process with respect to acts performed
by them in the exercise of their functions, except when the Centre
waives this immunity;
(b) not being local nationals, shall enjoy the same immunities from
immigration restrictions, alien registration requirements and national
service obligations, the same facilities as regards exchange restrictions
and the same treatment in respect of travelling facilities as are accorded
by Contracting States to the representatives, officials and employees of
comparable rank of other Contracting States.
ARTICLE 22
The provisions of Article 21 shall apply to persons appearing in proceedings
under this Convention as parties, agents, counsel, advocates, witnesses or experts;
provided, however, that subparagraph (b) thereof shall apply only in connection with
their travel to and from, and their stay at, the place where the proceedings are held.
ARTICLE 23
(1)
The archives of the Centre shall be inviolable wherever they may be.
(2) With regard to its official communications, the Centre shall be accorded by
each Contracting State treatment not less favourable than that accorded to other
international organisations.
ARTICLE 24
(1) The Centre, its assets, property and income, and its operations and
transactions authorised by this Convention shall be exempt from all taxation and
customs duties. The Centre shall also be exempt from liability for the collection or
payment of any taxes or customs duties.
(2) Except in the case of local nationals, no tax shall be levied on or in respect
of expense allowances paid by the Centre to the Chairman or members of the
Administrative Council, or on or in respect of salaries, expense allowances or other
emoluments paid by the Centre to officials or employees of the Secretariat.
(3) No tax shall be levied on or in respect of fees or expense allowances
received by persons acting as conciliators, or arbitrators, or members of a Committee
appointed pursuant to paragraph (3) of Article 52, in proceedings under this
Convention, if the sole jurisdictional basis for such tax is the location of the Centre
or the place where such proceedings are conducted or the place where such fees or
allowances are paid.
ARBITRATION
CHAPTER II
JURISDICTION OF THE CENTRE
ARTICLE 25
(1) The jurisdiction of the Centre shall extend to any legal dispute arising
directly out of an investment, between a Contracting State (or any constituent
subdivision or agency of a Contracting State designated to the Centre by that State)
and a national of another Contracting State, which the parties to the dispute consent
in writing to submit to the Centre. When the parties have given their consent, no
party may withdraw its consent unilaterally.
(2)
"National of another Contracting State" means
(a) any natural person who had the nationality of a Contracting State other
than the State party to the dispute on the date on which the parties
consented to submit such dispute to conciliation or arbitration as well as
on the date on which the request was registered pursuant to paragraph
(3) of Article 28 or paragraph (3) of Article 36, but does not include any
person who on either date also had the nationality of the Contracting
State party to the dispute; and
(b) any juridical person which had the nationality of a Contracting State
other than the State party to the dispute on the date on which the parties
consented to submit such dispute to conciliation or arbitration and any
juridical person which had the nationality of the Contracting State party
to the dispute on that date and which, because of foreign control, the
parties have agreed should be treated as a national of another
Contracting State for the purposes of this Convention.
(3) Consent by a constituent subdivision or agency of a Contracting State shall
require the approval of that State unless that State notifies the Centre that no such
approval is required.
(4) Any Contracting State may, at the time of ratification, acceptance or
approval of this Convention or at any time thereafter, notify the Centre of the class
or classes of disputes which it would or would not consider submitting to the
jurisdiction of the Centre. The Secretary-General shall forthwith transmit such
notification to all Contracting States. Such notification shall not constitute the
consent required by paragraph (1).
ARTICLE 26
Consent of the parties to arbitration under this Convention shall, unless otherwise
stated, be deemed consent to such arbitration to the exclusion of any other remedy. A
Contracting State may require the exhaustion of local administrative or judicial
remedies as a condition of its consent to arbitration under this Convention.
ARTICLE 27
(1) No Contracting State shall give diplomatic protection, or bring an
international claim, in respect of a dispute which one of its nationals and another
Contracting State shall have consented to submit or shall have submitted to
arbitration under this Convention, unless such other Contracting State shall have
ARBITRATION
failed to abide by and comply with the award rendered in such dispute.
(2) Diplomatic protection, for the purposes of paragraph (1), shall not include
informal diplomatic exchanges for the sole purpose of facilitating a settlement of the
dispute.
CHAPTER III
CONCILIATION
SECTION 1
Request for Conciliation
ARTICLE 28
(1) Any Contracting State or any national of a Contracting State wishing to
institute conciliation proceedings shall address a request to that effect in writing to
the Secretary-General who shall send a copy of the request to the other party.
(2) The request shall contain information concerning the issues in dispute, the
identity of the parties and their consent to conciliation in accordance with the rules
of procedure for the institution of conciliation and arbitration proceedings.
(3) The Secretary-General shall register the request unless he finds, on the basis
of the information contained in the request, that the dispute is manifestly outside the
jurisdiction of the Centre. He shall forthwith notify the parties of registration or
refusal to register.
SECTION 2
Constitution of the Conciliation Commission
ARTICLE 29
(1) The Conciliation Commission (hereinafter called the Commission) shall be
constituted as soon as possible after registration of a request pursuant to Article 28.
(2) (a) The Commission shall consist of a sole conciliator or any uneven number
of conciliators appointed as the parties shall agree.
(b) Where the parties do not agree upon the number of conciliators and the
method of their appointment, the Commission shall consist of three conciliators, one
conciliator appointed by each party and the third, who shall be the president of the
Commission, appointed by agreement of the parties.
ARTICLE 30
If the Commission shall not have been constituted within 90 days after notice of
registration of the request has been dispatched by the Secretary-General in
accordance with paragraph (3) of Article 28, or such other period as the parties may
agree, the Chairman shall, at the request of either party and after consulting both
parties as far as possible, appoint the conciliator or conciliators not yet appointed.
ARBITRATION
ARTICLE 31
(1) Conciliators may be appointed from outside the Panel of Conciliators,
except in the case of appointments by the Chairman pursuant to Article 30.
(2) Conciliators appointed from outside the Panel of Conciliators shall possess
the qualities stated in paragraph (1) of Article 14.
SECTION 3
Conciliation Proceedings
ARTICLE 32
(1)
The Commission shall be the judge of its own competence.
(2) Any objection by a party to the dispute that a dispute is not within the
jurisdiction of the Centre, or for other reasons is not within the competence of the
Commission, shall be considered by the Commission which shall determine whether
to deal with it as a preliminary question or to join it to the merits of the dispute.
ARTICLE 33
Any conciliation proceeding shall be conducted in accordance with the provisions
of this Section and except as the parties otherwise agree, in accordance with the
Conciliation Rules in effect on the date on which the parties consented to
conciliation. If any question of procedure arises which is not covered by this Section
or the Conciliation Rules or any rules agreed by the parties, the Commission shall
decide the question.
ARTICLE 34
(1) It shall be the duty of the Commission to clarify the issues in dispute
between the parties and to endeavour to bring about agreement between them upon
mutually acceptable terms. To that end, the Commission may at any stage of the
proceedings and from time to time recommend terms of settlement to the parties. The
parties shall cooperate in good faith with the Commission in order to enable the
Commission to carry out its functions, and shall give their most serious
consideration to its recommendations.
(2) If the parties reach agreement, the Commission shall draw up a report noting
the issues in dispute and recording that the parties have reached agreement. If, at any
stage of the proceedings, it appears to the Commission that there is no likelihood of
agreement between the parties, it shall close the proceedings and shall draw up a
report noting the submission of the dispute and recording the failure of the parties to
reach agreement. If one party fails to appear or participate in the proceedings the
Commission shall close the proceedings and shall draw up a report noting that
party’s failure to appear or participate.
ARTICLE 35
Except as the parties to the dispute shall otherwise agree, neither party to a
conciliation proceedings shall be entitled in any other proceeding, whether before
ARBITRATION
arbitrators or in a court of law or otherwise, to invoke or rely on any views expressed
or statements or admissions or offers of settlement made by the other party in the
conciliation proceedings, or the report or any recommendations made by the
Commission.
CHAPTER IV
ARBITRATION
SECTION 1
Request for Arbitration
ARTICLE 36
(1) Any Contracting State or any national of a Contracting State wishing to
institute arbitration proceedings shall address a request to that effect in writing to the
Secretary-General who shall send a copy of the request to the other party.
(2) The request shall contain information concerning the issues in dispute, the
identity of the parties and their consent to arbitration in accordance with the rules of
procedure for the institution of conciliation and arbitration proceedings.
(3) The Secretary-General shall register the request unless he finds, on the basis
of the information contained in the request, that the dispute is manifestly outside the
jurisdiction of the Centre. He shall forthwith notify the parties of registration or
refusal to register.
SECTION 2
Constitution of the Tribunal
ARTICLE 37
(1) The Arbitral Tribunal (hereinafter called the Tribunal) shall be constituted
as soon as possible after registration of a request pursuant to Article 36.
(2) (a) The Tribunal shall consist of a sole arbitrator or any uneven number of
arbitrators appointed as the parties shall agree.
(b) Where the parties do not agree upon the number of arbitrators and the
method of their appointment, the Tribunal shall consist of three arbitrators, one
arbitrator appointed by each party and the third, who shall be the president of the
Tribunal, appointed by agreement of the parties.
ARTICLE 38
If the Tribunal shall not have been constituted within 90 days after notice of
registration of the request has been dispatched by the Secretary-General in
accordance with paragraph (3) of Article 36, or such other period as the parties may
agree, the Chairman shall, at the request of either party and after consulting both
parties as far as possible, appoint the arbitrator or arbitrators not yet appointed.
ARBITRATION
Arbitrators appointed by the Chairman pursuant to this Article shall not be nationals
of the Contracting State party to the dispute or of the Contracting State whose
national is a party to the dispute.
ARTICLE 39
The majority of the arbitrators shall be nationals of States other than the
Contracting State party to the dispute and the Contracting State whose national is a
party to the dispute; provided, however, that the foregoing provisions of this Article
shall not apply if the sole arbitrator or each individual member of the Tribunal has
been appointed by agreement of the parties.
ARTICLE 40
(1) Arbitrators may be appointed from outside the Panel of Arbitrators, except
in the case of appointments by the Chairman pursuant to Article 38.
(2) Arbitrators appointed from outside the Panel of Arbitrators shall possess the
qualities stated in paragraph (1) of Article 14.
SECTION 3
Powers and Functions of the Tribunal
ARTICLE 41
(1)
The Tribunal shall be the judge of its own competence.
(2) Any objection by a party to the dispute that is not within the jurisdiction of
the Centre, or for other reasons is not within the competence of the Tribunal, shall be
considered by the Tribunal which shall determine whether to deal with it as a
preliminary question or to join it to the merits of the dispute.
ARTICLE 42
(1) The Tribunal shall decide a dispute in accordance with such rules of law as
may be agreed by the parties. In the absence of such agreement, the Tribunal shall
apply the law of the Contracting State party to the dispute (including its rules on the
conflict of laws) and such rules of international law as may be applicable.
(2) The Tribunal may not bring in a finding of non liquet on the ground of
silence or obscurity of the law.
(3) The provisions of paragraphs (1) and (2) shall not prejudice the power of the
Tribunal to decide a dispute ex aequo et bono if the parties so agree.
ARTICLE 43
Except as the parties otherwise agree, the Tribunal may, if it deems it necessary at
any state of the proceedings
(a) call upon the parties to produce documents or other evidence, and
(b) visit the scene connected with the dispute, and conduct such enquiries
ARBITRATION
there as it may deem appropriate.
ARTICLE 44
Any arbitration proceeding shall be conducted in accordance with the provisions
of this Section and, except as the parties otherwise agree, in accordance with the
Arbitration Rules in effect on the date on which the parties consented to arbitration.
If any question of procedure arises which is not covered by this Section or the
Arbitration Rules or any rules agreed by the parties, the Tribunal shall decide the
question.
ARTICLE 45
(1) Failure of a party to appear or to present his case shall not be deemed an
admission of the other party’s assertions.
(2) If a party fails to appear or to present his case at any stage of the
proceedings the other party may request the Tribunal to deal with the questions
submitted to it and to render an award. Before rendering an award, the Tribunal shall
notify, and grant a period of grace to, the party failing to appear or to present its
case, unless it is satisfied that party does not intend to do so.
ARTICLE 46
Except as the parties otherwise agree, the Tribunal shall, if requested by a party,
determine any incidental or additional claims or counter-claims arising directly out
of the subject-matter of the dispute provided that they are within the scope of the
consent of the parties and are otherwise within the jurisdiction of the Centre.
ARTICLE 47
Except as the parties otherwise agree, the Tribunal may, if it considers that the
circumstances so require, recommend any provisional measures which should be
taken to preserve the respective rights of either party.
SECTION 4
The Award
ARTICLE 48
(1) The Tribunal shall decide questions by a majority of the votes of all its
members.
(2) The award of the Tribunal shall be in writing and shall be signed by the
members of the Tribunal who voted for it.
(3) The award shall deal with every question submitted to the Tribunal, and
shall state the reasons upon which it is based.
(4) Any member of the Tribunal may attach his individual opinion to the award,
whether he dissents from the majority or not, or a statement of his dissent.
(5)
The Centre shall not publish the award without the consent of the parties.
ARBITRATION
ARTICLE 49
(1) The Secretary-General shall promptly dispatch certified copies of the award
to the parties. The award shall be deemed to have been rendered on the date on
which the certified copies were dispatched.
(2) The Tribunal upon the request of a party made within 45 days after the date
on which the award was rendered may after notice to the other party decide any
question which it had omitted to decide in the award and shall rectify any clerical,
arithmetical or similar error in the award. Its decision shall become part of the award
and shall be notified to the parties in the same manner as the award. The periods of
time provided for under paragraph (2) of Article 51 and paragraph (2) of Article 52
shall run from the date on which the decision was rendered.
SECTION 5
Interpretation, Revision and Annulment of the Award
ARTICLE 50
(1) If any dispute shall arise between the parties as to the meaning or scope of
an award, either party may request interpretation of the award by an application in
writing addressed to the Secretary-General.
(2) The request shall, if possible, be submitted to the Tribunal which rendered
the award. If this shall not be possible, a new Tribunal shall be constituted in
accordance with Section 2 of this Chapter. The Tribunal may, if it considers that the
circumstances so require, stay enforcement of the award pending its decision.
ARTICLE 51
(1) Either party may request revision of the award by an application in writing
addressed to the Secretary-General on the ground of discovery of some fact of such a
nature as decisively to effect the award, provided that when the award was rendered
that fact was unknown to the Tribunal and to the applicant and that the applicant’s
ignorance of that fact was not due to negligence.
(2) The application shall be made within 90 days after the discovery of such fact
and in any event within three years after the date on which the award was rendered.
(3) The request shall, if possible, be submitted to the Tribunal which rendered
the award. If this shall not be possible, a new Tribunal shall be constituted in
accordance with Section 2 of this Chapter.
(4) The Tribunal may, if it considers that the circumstances so require, stay
enforcement of the award pending its decision. If the applicant requests stay of
enforcement of the award in his application, enforcement shall be stayed
provisionally until the Tribunal rules on such request.
ARTICLE 52
(1) Either party may request annulment of the award by an application in
writing to the Secretary-General on one or more of the following grounds
(a) that the Tribunal was not properly constituted;
ARBITRATION
(b) that the Tribunal had manifestly exceeded its powers;
(c) that there was corruption on the part of a member of the Tribunal;
(d) that there has been a serious departure from a fundamental rule of
procedure; or
(e) that the award has failed to state the reasons on which it is based.
(2) The application shall be made within 120 days after the date on which the
award was rendered except that when annulment is requested on the ground of
corruption such application shall be made within 120 days after discovery of the
corruption and in any event within three years after the date on which the award was
rendered.
(3) On receipt of the request the Chairman shall forthwith appoint from the
Panel of Arbitrators an ad hoc Committee of three persons. None of the members of
the Committee shall have been a member of the Tribunal which rendered the award,
shall be of the same nationality as any such member, shall be a national of the State
party to the dispute or of the State whose national is a party to the dispute, shall have
been designated to the Panel of Arbitrators by either of those States, or shall have
acted as a conciliator in the same dispute. The Committee shall have the authority to
annul the award or any part thereof on any of the grounds set forth in paragraph (1).
(4) The provisions of Articles 41 - 45, 48, 49, 53 and 54, and of Chapters VI and
VII shall apply mutatis mutandis to proceedings before the Committee.
(5) The Committee may, if it considers that circumstances so require, stay
enforcement of the award pending its decision. If the applicant requests a stay of
enforcement of the award in his application, enforcement shall be stayed
provisionally until the Committee rules on such request.
(6) If the award is annulled the dispute shall, at the request of either party, be
submitted to a new Tribunal constituted in accordance with Section 2 of this Chapter.
SECTION 6
Recognition and Enforcement of the Award
ARTICLE 53
(1) The award shall be binding on the parties and shall not be subject to any
appeal or to any other remedy except those provided for in this Convention. Each
party shall abide by and comply with the terms of the award except to the extent that
enforcement shall have been stayed pursuant to the relevant provisions of this
Convention.
(2) For the purposes of this Section, "award" shall include any decision
interpreting, revising or annulling such award pursuant to Articles 50, 51 or 52.
ARTICLE 54
(1) Each Contracting State shall recognise an award rendered pursuant to this
Convention as binding and enforce the pecuniary obligations imposed by that award
within its territories as if it were a final judgement of a court in that State. A
Contracting State with a federal constitution may enforce such an award in or
through its federal courts and may provide that such courts shall treat the award as if
it were a final judgement of the courts of a constituent state.
ARBITRATION
(2) A party seeking recognition or enforcement in the territories of a
Contracting State shall furnish to a competent court or other authority which such
State shall have designated for this purpose a copy of the award certified by the
Secretary-General. Each Contracting State shall notify the Secretary-General of the
designation of the competent court or other authority for this purpose and of any
subsequent change in such designation.
(3) Execution of the award shall be governed by the laws concerning the
execution of judgements in force in the State in whose territories such execution is
sought.
ARTICLE 55
Nothing in Article 54 shall be construed as derogating from the law in force in
any Contracting State relating to immunity of that State or of any foreign State from
execution.
CHAPTER V
REPLACEMENT AND DISQUALIFICATION OF CONCILIATORS AND
ARBITRATORS
ARTICLE 56
(1) After a Commission or a Tribunal has been constituted and proceedings have
begun, its composition shall remain unchanged; provided, however, that if a
conciliator or an arbitrator should die, become incapacitated, or resign, the resulting
vacancy shall be filled in accordance with the provisions of Section 2 of Chapter III
or Section 2 of Chapter IV.
(2) A member of the Commission or Tribunal shall continue to serve in that
capacity notwithstanding that he shall have ceased to be a member of the Panel.
(3) If a conciliator or an arbitrator appointed by a party shall have resigned
without the consent of the Commission or Tribunal of which he was a member, the
Chairman shall appoint a person from the appropriate Panel to fill the resulting
vacancy.
ARTICLE 57
A party may propose to a Commission or Tribunal the disqualification of any of
its members on account of any fact indicating a manifest lack of the qualities
required by paragraph (1) of Article 14. A party to arbitration proceedings may, in
addition, propose the disqualification of an arbitrator on the ground that he was
ineligible for appointment to the Tribunal under Section 2 of Chapter IV.
ARTICLE 58
The decision on any proposal to disqualify a conciliator or arbitrator shall be
taken by the other members of the Commission or Tribunal as the case may be,
provided that where those members are equally divided, or in the case of a proposal
to disqualify a sole conciliator or arbitrator, or a majority of the conciliators or
ARBITRATION
arbitrators, the Chairman shall take that decision. If it is decided that the proposal is
well-founded the conciliator or arbitrator to whom the decision relates shall be
replaced in accordance with the provisions of Section 2 of Chapter III or Section 2 of
Chapter IV.
CHAPTER VI
COST OF PROCEEDINGS
ARTICLE 59
The charges payable by the parties for the use of the facilities of the Centre shall
be determined by the Secretary-General in accordance with the regulations adopted
by the Administrative Council.
ARTICLE 60
(1) Each Commission and each Tribunal shall determine the fees and expenses
of its members within limits established from time to time by the Administrative
Council and after consultation with the Secretary-General.
(2) Nothing in paragraph (1) shall preclude the parties from agreeing in advance
with the Commission or Tribunal concerned upon the fees and expenses of its
members.
ARTICLE 61
(1) In the case of conciliation proceedings the fees and expenses of members of
the Commission as well as the charges for the use of the facilities of the Centre, shall
be borne equally by the parties. Each party shall bear any other expenses it incurs in
connection with the proceedings.
(2) In the case of arbitration proceedings the Tribunal shall, except as the parties
otherwise agree, assess the expenses incurred by the parties in connection with the
proceedings, and shall decide how and by whom those expenses, the fees and
expenses of the members of the Tribunal and the charges for the use of the facilities
of the Centre shall be paid. Such decision shall form part of the award.
CHAPTER VII
PLACE OF PROCEEDINGS
ARTICLE 62
Conciliation and arbitration proceedings shall be held at the seat of the Centre
except as hereinafter provided.
ARTICLE 63
Conciliation and arbitration proceedings may be held, if the parties so agree,
ARBITRATION
(a) at the seat of the Permanent Court of Arbitration or of any other
appropriate institution, whether private or public, with which the Centre
may make arrangements for that purpose; or
(b) at any other place approved by the Commission or Tribunal after
consultation with the Secretary-General.
CHAPTER VIII
DISPUTES BETWEEN CONTRACTING STATES
ARTICLE 64
Any dispute arising between Contracting States concerning the interpretation or
application of this Convention which is not settled by negotiation shall be referred to
the International Court of Justice by the application of any party to such dispute,
unless the States concerned agree to another method of settlement.
CHAPTER IX
AMENDMENT
ARTICLE 65
Any Contracting State may propose amendment of this Convention. The text of a
proposed amendment shall be communicated to the Secretary-General not less than
90 days prior to the meeting of the Administrative Council at which such amendment
is to be considered and shall forthwith be transmitted by him to all the members of
the Administrative Council.
ARTICLE 66
(1) If the Administrative Council shall so decide by a majority of two-thirds of
its members, the proposed amendment shall be circulated to all Contracting States
for ratification, acceptance or approval. Each amendment shall enter into force 30
days after dispatch by the depository of this Convention of a notification to
Contracting States that all Contracting States have ratified, accepted or approved the
amendment.
(2) No amendment shall affect the rights and obligations under this Convention
of any Contracting State or of any of its constituent subdivisions or agencies, or of
any national of such State arising out of consent to the jurisdiction of the Centre
given before the date of entry into force of the amendment.
ARBITRATION
CHAPTER X
FINAL PROVISIONS
ARTICLE 67
This Convention shall be open for signature on behalf of States members of the
Bank. It shall also be open for signature on behalf of any other State which is a party
to the Statute of the International Court of Justice and which the Administrative
Council, by a vote of two-thirds of its members, shall have invited to sign the
Convention.
ARTICLE 68
(1) This Convention shall be subject to ratification, acceptance or approval by
the signatory States in accordance with their respective constitutional procedures.
(2) This Convention shall enter into force 30 days after the date of deposit of the
twentieth instrument of ratification, acceptance or approval. It shall enter into force
for each State which subsequently deposits its instrument of ratification, acceptance
or approval 30 days after the date of such deposit.
ARTICLE 69
Each Contracting State shall take legislative or other measures as may be
necessary for making the provisions of this Convention effective in its territories.
ARTICLE 70
This Convention shall apply to all territories for whose international relations a
Contracting State is responsible, except those which are excluded by such State by
written notice to the depository of this Convention either at the time of ratification,
acceptance or approval or subsequently.
ARTICLE 71
Any Contracting State may denounce this Convention by written notice to the
depository of this Convention. The denunciation shall take effect six months after
receipt of such notice.
ARTICLE 72
Notice by a Contracting State pursuant to Article 70 or 71 shall not affect the
rights or obligations under this Convention of that State or of any of its constituent
subdivisions or agencies or of any national of that State arising out of consent to the
jurisdiction of the Centre given by one of them before such notice was received by
the depository.
ARTICLE 73
Instruments of ratification, acceptance or approval of this Convention and of
ARBITRATION
amendments thereto shall be deposited with the Bank which shall act as the
depository of this Convention. The depository shall transmit certified copies of this
Convention to States members of the Bank and to any other State invited to sign the
Convention.
ARTICLE 74
The depository shall register this Convention with the Secretariat of the United
Nations in accordance with Article 102 of the Charter of the United Nations and the
Regulations thereunder adopted by the General Assembly.
ARTICLE 75
The depository shall notify all signatory States of the following
(a) signatures in accordance with Article 67;
(b) deposits of instruments of ratification, acceptance and approval in
accordance with Article 73;
(c) the date on which this Convention enters into force in accordance with
Article 68;
(d) exclusions from territorial application pursuant to Article 70;
(e) the date on which any amendment of this Convention enters into force
in accordance with Article 66; and
(f) denunciation in accordance with Article 71.
DONE at Washington in the English, French and Spanish languages, all three
texts being equally authentic, in a single copy which shall remain deposited in the
archives of the International Bank for Reconstruction and Development, which has
indicated by its signature below its agreement to fulfil the functions with which it is
charged under this Convention.
ARBITRATION