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act_1996_2 chapterviiiof MT

II tal-1996 - Att tal-1996 dwar l-Arbitragg (chapterviiiof)

78 Articles / Provisions · Malta
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Table of Provisions (78)

Statutory Text (78 Articles)

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

I assent.

Uoo MIFSUD B ONN I CI

(LoS.)

President

13th February. 1996

ACT Ne.n of 1996

AN A CT /0 encourage (lIId facilitate the settlement of disputes th rough

arbitrlltion in Moira, /0 establish the Mafw Arbitration Centre lIS a

u nlrt for domUlic arbitration om1 interMliOMi commercial

arbitration, to make provisions "gularing thecondud of arbitration

procudings and the recognition and enforcement o[ Ctrtain arbllraf

awards.

BE IT ENACTED by the President, by and wi th the advice and

consent of the House of Represen tatives, in this present Parl iament

asse mbled. and by the authority of the ~me, as follows:-

PARTI

Preliminary

I . This Act may be ciled u the Arbitration Act . 1996, and shall

come into force on such da te as tbe Minister responsible for justice may

by notice in the Gazelle establish and different dates may be so

established for different provisions and different purposes of this Act.

In this Act , unless the context otherwise requires

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

( I)

Dan I· A II jista ' jisscjjah I-A II la' 1· 1996 dwar I-A Thitragg. TIIoI. 6k1<*><

u gbandu jibda jsehb rdik id-data Ii ]· Ministru responsabbli ghall- • t.;du_hlL

gustizzja jisla' jislabiliXll:i b' avviz [jJ·Gazzella u jistghu jigu hekk

sta bbiliti dati different i ghal dispotizzjonijiet different! u gl'la nijiet

differenti la' dan I· AIt .

l.

F'dan I· AIt , kemm·il darba r-rabta lal· kli em rna ' lel'l tiegx mod

iehor

" Bord" lfisser il-Bord ta' Gvernaturi lae-Centru;

"Centru M tfisser ie-Centru dwa r I. Arbitrag la' MalIa

mwaqqaf bl·artikolu 3 ta' dan I· AII ;

"Chaimwn " lfisser i¢-Chairmon tal-Bord;

"ftehim la' arbilragg~ tfisser fl ehim kifimfisser n·Artiklu 7lal·

Mudellta' Ligi ;

" Ministru ~ lfisser il-MiniSlru responsabbli ghal1-gusliuja ;

" Mudell ta ' Ligi" lfisser il-Mudell ta ' Ligi d war ArbitraU

Kummc:Jtjali Intemazzjonali adottat m-21 ta' G unju, 1985 mill-

Kummissjoni tan. Nazzjonijiet Uni ti dwa r id· Driu tal-Kummett

Intemaujonali Ii hemm fI -Ewwel Skeda Ii tinsab rn a' dan I· Atl;

MRegistrll.tu r M tfisser ir-regist ratur tat-Centru;

Mlribu nal ta ' j-arbilragg" tfisscr arbi tru uniku jew gI'I add la'

arbitri;

":i:mien finanzjarju~ lfisse r tm ien la' flames slIin Ii jibda fl-

c:wwc:J jurn ta' Jannar la ' se na partiko lari u j !t mm fiI-wie hed u tletin

jurn ta ' Dieembru tal· hames sella Ii tigi wata dik is-sella ; iida \.

ewwcl tmien finanl:jarjl.l lat·Centru ghandu jkun dak it·1mien Ii

jibda meta ligi fis-seM, il-Taqsima III ta' dan '· An u ile rum til-3 !

jurn ta' Ditembru las·se ll a Ii ligi minnufih wara dik is-scll a meta t-

Taqsima III imscmmija Ikun bdiet isse hh.

TAOSIMA II

-rwaqqlfu Fun1.jonijttt laC~nlru

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW

MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION.

(ADOPTED, JUNE 21, 1985)

UNCITRAL Model Law on International Commercia] Arbitration

(as adopted by the United Nations Commission on International

Trade Law on 21 June 1985)

CHAPTER I.

GENERAL PROVISIONS

Article 1. Scope of application··

(1) This law applies to international commercial··· arbitration , subject to any

agreement in force between this State and any ot her State or States.

(2) The provisions of this law, except articles 8, 9, 35 and 36, apply only if the

place of arbilration is in the territory of this State.

(3)

An arbitration is international if

(a) the parties to an arbitration agreement have , at the lime of the

conclusion of thaI agreement, their places of business in different States; or

(b) one of the followi ng places is situated outside the State in which the

parties have their places of business

(i) the place of arbitration if determined in, or pursuant to, the

arbitration agreeme nt;

(ii) any place where a substantial parI of the obligations of the

commercial relationship is to be performed or the place wit h which the

subject-matter of the dispute is most closely connected; or

(c) tne parties nave expressly agreed that the subject-matter of the

arbit rat ion agreement relates to more than one country.

(4)

For the purposes of paragraph (3) of tnis article

• Reproduced from tile Report from III< Un iled Nat;" ... Commi>sion on Inle''''lional Trade Law on III< """k of

til< ei,hlc<ntlt session (June 3- 21 , 1985). U.N. G,mern! A...,mbly Official Records Fortieth S. .. ion. Supplemenl

No. 17 (A/4O'11). Anne. I. 1'1'. 81 - 93 .

••

Ani"'. H •• din" ore for til< rck .. "", purpooes on ly and ar. no< to be .... d for purp<>sc> of interprel'lion.

... The term "oommerdal" 5IIoukl be liven a wide: ;nlerp"!alion 00 as 10 COVe' ma ners arisina from all

rdalion1hipo of • commercial n",u'e .... hethCT """'TaCtual or not. Rel.,,,,,,,,,ipo of • commeTcial nature ir.clude. but

""'ions,

ore nOl limiled 10. Ihe 1ollowi", tr ....

ony t",de tranuetion 1m the .upply or e.change 01 g<>o<b or seMen

distribution . gr«mont, oom"",,,,ial .. p .... nl.tion or agency, (""'orin,: leas;n" conslruction 01 """"ks; oon.uitin"

engineeri na' IictruinJ; inve>tmcn", fin.ar.cing; banking: iMura"",: e<ploiWion agr«men\ or cooce .. ion: joint

venture and 01,"",' form! of induSlrit l or buline" ",""""" .. ,ion; <.mag<' of good! O. pII~ng.rs by oir ..... rail o.

ro.d.

A

(a) if a party has more than place of busi ness, the place of business is that

which has the closest re lationship to the arbitration agreement ;

(b) it a party does nOI have a place of busi ness, reference is to be made 10

his habitu al residence.

(5) This Law shaU nOi effect any other law of Ihis State by virtu e of wh ich

cert ain disputes may nOI be submiued 10 arbitration or may be submitted 10

arbilration o nly according to provisions ot he r than those of this Law.

Dtftnilion aDd Rules of Inttrpntatlon

Article 2.

For the purposes of this Law

(a) ~ a rbitration ·· means any arbi tration whether or not administered by a

pe rmanent arbitral instit ution;

(b)

Harbitral tribunal" means a sole arbitrator or a panel of arbitrators;

(e)

~ co unt " means a body or organ of the judicial system of a Stale;

(d) where a provision of this Law, except anicle 28, leaves the panics free

to determine a certain iss ue, such freedom includes the right of th e part ies 10

au tho rise a third pany, including an institu tion, to make that dete rmin ation ;

(e) where a provision of th is Law refers to the feet that the pa rt ies have

agreed or that they may agree or in any other way refers to an agreement of the

panies, such agree ment includes any arbitration rul es referred \0 in tha t

agreeme nt ;

(0 where a provision of this Law, ot her than in articles 2S (a) and 32 (2)

(a), refers to a claim, it also applies to a eounter·claim, and whe re it refers to a ,

defe nce, i: also applies to a defence to such counter· claim.

Ank le 3.

Receipt of written communicatlollS

(I)

Unless otherwise agreed by th e parties

(a) any written communication is deemed to have been recei ved if it is

delivered to the addressee personally or if it is delivered at his place o f business,

habitual residence or ma ili ng address; if none of these can be found aft er making

a reasona ble inquiry, a written communication is deemed \0 have been received

if it is se nt to the addressee's last·known place of business, habitual residence or

mailing add ress by registered letter or any other means wh ich provides a record

of th e attempt to deliver it;

(b) the communicatio n is deemed to have been received on th e day it is so

delivered.

(2) The provisions of th is anicle do nOI apply to communicati ons in cou rt

proceedings.

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Waiver or right to object

Artkle 4.

A party who knows that any provisio ns o f this Law from which the parties may

derogate or any requirement under the arbitra tion agree me nt has not bee n colT'l"lied

with and yet pr(M;ceds with the arbitration without stating his objection 10 such non·

compliance without undue delay or, if a tim e-limit is provided therefor , within such

period of time , shall be deemed to have waived his right to objec!.

Article 5.

Extent or court intervention

In mailers governed by this Law, no coun shall intervene except where ~

provided in Ihis Law.

Article 6.

Court or other authority for certain ruoctions of arbitration assistance and

supervls60n

The functions referred to in anicles 11 (3), 1 J (4), 13 (3), 14, 16 (3) a nd 34 (2)

shall be pcrfonned by ...... lEach State enacting th is model law specifies the court,

courts or, where referred to therei n, othe r au thority competent to perform these

functions. J

CHAPTER II . ARBITRATION AGREEMENT

Article 7.

Definition and (orm of IITbltration agretment

(1) ~ Arbitration agrecmen C is an agreeme nt by the panies to submit to

arbitration all or certain disputes which have arise n or which may arise: be tween them

in respect o f a defined legal relationship, whe ther contractual or nol. An a rbitration

agreemen t may be in the form o f an arbit r.llion clause in a contract or in the form of

a separate agreement.

(2) The arbitratio n agreement shall be in wri ting. An agreemen t is in writing if

it is con tained in a document signed by the parties or in an exchange o f letters, telex,

te legrams or other means of te1t;comm unica tio n which provide a record of the

af; reement. or in an exchange of statements of claim and defe ne~ in whi ch the

existence of an agreement is alleged by one party and not denied by another. The

rde rence in a contract to a docume nt contai ning an arbitration clause constitutes an

arbitration agreement provided that the contract is in writing and the reference is

such as to make that cla use part of the contract.

A rticle 8.

Arbitration agrftmenl and substanlh'e clai m heron rourt

(1) A court before which lUI action is brought in a maile r which is the subject

o f an arbitration agreeme nt shall, if a party so reque~ts nOI late r than when

su bmitting his firsl stalement on the substance of the disput e, refe r the panies to

ar bitration unless it finds thai the agreemen t is nun and void, inoperative or incapable

of being performed.

(2) Wherean ac tion. referred to in paragraph (I) of Ihis articie has bee n

brought, arbitral proceedi ngs may nevertheless be commenced or enotinuccl , and an

~w~nt m~v he mad e. whi le the issue is pcndin.'l before the court.

A

A rticle 9.

Arbitration ag. ttRN'Dt and interim measures by court

It is not. incompatible with . an arbitratton agreement for a party to request,

before or dunng arbitral proceedings, from a court an interim measure of protection

and for a coun to grant such measure .

CHAPTER Ill.

COMPOSITION OF ARB ITRAL TRIBUNAL

Article 10.

Number or arbitrators

(1) The pan ies are free to determine the number of arbitrators.

Fal;ing such determination, th e number of arbitrators shall be three.

(2)

Anicle II.

Appointment of arbitrators

(1) No person shall be precluded by reason of his nationality from acting as an

arbitrator, unless otherwise agreed by the parties.

(2) The parties are free to agree on a procedure of appointing the arbitrator or

arbitrators, subject to the provisions of paragraphs (4) and (5) o f this article .

(3)

Failing such agree ment,

(a) in an arbitration wit h three arbitrators, each pany shall appoint o ne

arbi trator , and the two arbitrators thus appointed shall appoint the th ird

arbitrator: if a pany fails to appoint the arbit rator within thiny days of receipt of

a request to do so from the other party, or if the two arbitrato rs fail to agree on

the third arbitrator within thirty days of their appointment, the appoin tment

shall be made, upon request of a party , by the coun or other authority specifted

in article 6;

(b) in an arbitration with a sole arbi trator , if th e panies are unable to

agree on the arbitrator, he shall be appointed , upon request o f a pany, by the

court or other authority specified in article 6.

(4)

Where, under an appoin tmen t procedure agreed upon by the panies,

(a)

a pany fails to act as required under such procedure , or

(b) the panies, or two arbit rators, are unable to reach an agreement

expected of them unde r such procedure, or

(c) a third party , including an institution, fails to perform any fu nction

entrusted to it undcr such procedure,

any pany may request the court or other authority speCified in art icle 6 to lake t he

necessary measure, unless the agreement on the appointment procedure provides

other means for securing the appointment.

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(5) A decision on a matter entrusted by paragraph (3) or (4) of this article to

the court or other au tho rity specified in anicle 6 shall be subject 10 no appeal. The

court or othe r au thority, in appoin ting an arbitrator, shall have due regard to any

qua lifications required of the arbitrator by the agreement of th e parties and to such

considerations as are likely to secure the appointment of an independen t and

impartial arbitra tor and , in the case of a sole or third arbitrator, shall lake inlO

account as welilhe advisability of appointing an arbitrator of a nationality other than

those: of the parties.

Arlicle 12.

Grounds (or dWlmte

(1) When a person is approacbed in connection with his possible appointment

as an arbitrato r, he shall disclose any circumstances likely to give rise to justifiable

doubts as to his impartiality or independence. An arbitrator, from the time of his

appointment and thro ughout the arbi tral proceedings, &ball wi thout delay disclose

any such circumstances to the panies unless they have already been infonned of them

by him,

(2) An arbi trator may be challenged only if circumstances e)[ist that give rise to

justifiable doubts as to his impaniality or independence , or if he does not possess

qualifications agreed to by the parties. A party may challenge an arbitrator appoin ted

by him , or in whose appointment he has participated, only for reasons of which he

becomes awa re after th e appointment has bee n made.

Article 13.

Ch.lle~ prottdu~

(I) The parties a re free to agree on a procedure for challenging an arbitrator ,

subject to the provisions of paragraph (3) of this article.

(2) Failing such agreeme nt, a party who intends to challe nge an arbitrator

shall , within fiftec n days aftcr becoming aware of the constitution of the arbit ral

tribuna l or after becoming awa re of any circumstances referred to in an icle 12 (2),

send a written statement of the reasons for the challenge to the arbitral tribunal.

Unless th e challenged arbi trator withdraws from his o ffice or the other party agrees

to the challenge, the a.rbitral tribunal shall decide on the challenge.

(3) If a challenge under any proced ure agreed upon by the parties or unde. the

procedure of paragra ph (2) of this article is not successful, the challenginlS party may

request. within thin y days after having received notice of the decision rejecting the

challenge. the coun or other authority specified in article 6 to decide on the

challenge, wh ic h decision shall be subject to no appeal: while such a request is

pending, th e arbitral tribunal. including the cballenged arbitrator. may contin ue the

arbitral proceedings and make an award.

Ank le 14.

Failure 01' Impos5ibilUy to act

( I) If an arbitrator becomes dejrut OT de faCiO una ble to perform his function s

or for othe r reasons fails to act wi thout undue de lay. his mandate termi nates if he

withdraws from his office or if the parties agree on the termination. Otherwise, if a

controversy remains concernin g any of th ese grounds, any party may request th e

coun or other authorit y specified in an icle 6 to decide on the termination of Ihe

mandate , which decisio n shall be subject to no appeal .

A

,03

(2) If. under this article o r article 13 (2), an arbitrator withdraws from his offICe

or a party agrees to the termination of the mandate of an arbitrator. this does not

imply acceptance of the validity of any ground referred to in this article o r an icl~ 12

(2).

Anicle 15.

Appointment of substitute arbitrator

Wh ere the mandate of an arbitrato r terminates under article 13 or \4 or because

of his withdrawal from office for any othe r reason or because of the rcvocation of hi s

manda te by agreemen t of the parties or in any other case of te rm inalion of his

mandate, a substitute arbitrator shall be appointed accordi ng to the rules that were

applicable 10 the appointment of the arbitrator ~ ing replaced.

CHAPTER IV. JURISDlcrlON OF ARB ITRAL TRIBUNAL

or arbitral tribu ..... to ruSe 00 its jurisdkUon

Com~nce

Article 16,

( I) The arbitral tribunal may rule on ils own jurisdiction, including any

objections with respect to the existence or validity of the arbitration agreemen t. For

that purpose, an arbitration clause which fo rms part of a COntract shall be treated as

an agreement independent of the other tenns of the contract. A decision by the

arbitral tribunal that the cont ract is null and void shall not entail ipso jure the

invalidity of the arbitration clause.

(2) A plea that the arbitral tribu nal does not have jurisdiction shall be raised

not later than the submission of the stateme nt of defence. A party is not precluded

from raising such a plea by the fact that he has appointed, or participated in the

appointment of, an arbi trator. A plea that the arbit ral tribunal is exceeding the scope

of its autho rity shall be raised as soon as the maHer alleged to be Dtyond the scope

of its au thority is raised during the arbitral proceedings. The arbi tral tribunal may, in

either case , admit II later plea if it considers the de lay justified.

(3) The arbitral tribunal may rule on a plea referred to in paragraph (2) of this

article eithe.' as a preliminary question or in an award on the merits. If the arbitral

tribunal rules as a preliminary question that it has jurisdiction, any part may request,

within thirty days after having received notice of that ruling, the court specified in

article 6 to decide the matter, wh ic h decision shall be subject to no appeal: while such

a request is pending, the arbitral tribun al may continue the arbitral proceedings and

make an award.

Artkle 17.

Powu of arbitral tribunal to order interim measura

Unless otherwise agreed by the parties, the arbitral tri bunal may, at the request

of a party, order any party to take such interim measure of protection as the arbi tral

tribunal may conside r necessary in respect of the subject.maHer of the dispute. The

arbitral tribunal may require any party to provide appropriate security in connection

with such measure.

CHAPTER V. CONDUcr OF ARBITRAL PROCEEDINGS

Article 18.

Equal treatment or parties

The parties shall be treated with equality and each party shall be give n a full

opportunity o f presenting his case .

A

""

Article 19, DetumlnlUon of ruks or procedure

(1) Subject to the provisions of this Law, the panies are free 10 agree on the

procedure to be followed by the arbitral tribunal in conducting the proceedings.

(2) Failing such agreement , the arbitral tribunal may. subject 10 the provisions

of Ihis Law, conduct the arbitration in such manner as it considcn appropriate. The

power conferred upon the arbitral tribunal includes the power 10 determine the

admissibility, releyance, materiality and weight of any evidence.

Place or arbitration

Article 20.

(1) The parties are free to agree on the place of arl)ilralion. Failing such

agreement , the place of arbitrat ion shall be determined by the arbitral tribunal having

regard to the circumstances of the case, including the conve nience of the parties.

(2) Notwithstandi ng the provisions of paragraph (1) of this article, the arbitral

tribunal may, unless otherwise agreed by the parties, meet at any place it considers

appropriate for consulta tion among its members, for hearing witnesses, experts or the

parties, or for inspection of goods, other property or documents.

Article 21 . Commencement or arbitral pi oceedlngs

Unless otherwise agreed by the parties, the arbitral proceedings in respect of a

particular dispute co mmence on the date on which a request for that dispute to be

referred to arbitration is received by the respondent.

Article 22.

Language

(\) The parties are free to agree on the language o r languages 10 be used in the

arbitral proceedings. Failing such agreement, the arbitral tribunal shall detennine the

langua ge or language!:! to be used in th e proccedings. This agreement or

determination, unless oth erwise specified therein , shall apply to any written

stateme nt by a pany. any bearing and any award, decision or other communication

by the arbi tral tribunal.

(2) The arbit ra l tribunal may order that any document ary evidc nce shall be

accompan ied by a translation into !he language or languages agreed upon by th e

panh:s o r det ennined by the arbitral tribunal.

SlIItelMnt of claim and def"entt

Artkle 23.

(I) Within the period of time agreed by the parties or detennined by th e

arbitral tribuna l, the claimant shall state the facts supporting the claim. the points at

issue and the relief of remedy sough t , and the respondent shall state his defence in

respect of these particulars, unless the parties have otherwise agreed as to the

requi red elements of such statements. The parties may su bmit with their statements

all documents they consider to be relevant or may add a refer~nce to the documents

or oth er evidence they will submit .

(2) Un less ot herwise agreed by the parties. eilher party may amend or

supplement his claim or defence during the course of the arbitral proceedings, unless

the arbitral tribunal considers it inappropriate to allow such amendment having

regard to th e delay in making it .

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Article 24.

Hearing and written proceedlnp

(I) Subject to any contra ry agreement by the parties, the arbitral tribuna l shall

decide whe ther to hold oral hearings for the presentation of evidence or for o ral

argumen t, or whether the proceedings shall be cond ucted o n the basis of documents

and other materials. However, unless th e parties have agreed that no hearings shall

be held , the arbitral tribunal shall hold such hearings at an appropriate stage of th e

proceedings , if so requested by a party.

The parties shall be given sufficient advance no tice of any hearing and of

(2)

any meeting of the arbitral tribunal for the purposes of inspection of goods, other

property or documents.

(3) AU statements, documents or o ther informa tion suppl ied to the arbi tral

tribunal by one party shall be communicated to the other party. Also any expert

report or evidentiary document on which the arbitral tribunal may rely in making its

decision shall be communicated to the panies.

Anicle 25.

Default 01 a party

Unless otherwise agreed by the panies, if, without showing sufficient cause,

(a) the claimant fails to communicate his statement of clai m in accordance

with article 2J (1), thc arbitral tribunal shall terminate the proceedinss;

(b) the respondent fai ls to communicate his statement of defence in

accordance with article 23 ( I), the arbi ual tribu nal shall continue the

proceed ings without trea ting such fail ure in itself as an admission of the

claimanl"s allegations ;

(c) any pany fails to appear at a hearing or to produce documentary

evidence, the arbitral tribunal may continue the proceedings and make the

awa rd on the evidence before it .

Article 26.

ExP"1 appointed by arbitral tribunal

(I )

Unless otherwise agreed by the parties, t he arbitral tribunal

(a) may appoint 0111;: or more experts to report to it on specific issues to be

determined by the arbitral tribuna l;

(b) may require a pany to give the expen any relevant information or to

prod uce, or to provide access to, any relevant documen ts, goods or other

property for his inspection .

Unless oth erwise agreed by th e parties. if a part y so reqesls or if th e arbitral

(2)

tribunal co n s ide~ it necessary, th e expert shall, afte r delivery of his written or oral

report , participate in a hearing where the parties have the opportunity to put

questio ns to him and 10 present expert witnesses in order to testify on Ihe ]Xlints al

issue.

A

Article 27.

Court assistan« in taking evklence

The arbitral uibunal or a party with th e approval of the arbitral tribunal may

request from a competent court of this Slale assistance in taking evidence.-The court

may execute the request within ilS co mpelence and according to its rules on laking

evidence.

CHAPTER VI. MAKING OF AWARD AND TERMINATION

OF PROCEEDINGS

Article 28.

Rules applkable 10 sub6tanC4' of dbpute

(1) The arbitral tribunal shall decide th e dispute in accordance with such rules

of law as are chosen by the parties ali applicable 10 the substiince of the dispUie. Any

designation of the law or legal system of a give n Stat'e shall be construed , unless

oth erwise expressed , as directly referring to the substantive law of that Siale and nOI

to its co nflict of laws rules.

(2) Failing any designation by the parties, the arbitral tribunal shall apply the

law determined by the confli ct o f laws rules which it considers applicable.

(3) The arbitral tribunal shall decide ex aequo et bOlla or as amiable

compositeur only if the parties have expressly authorised it to do so.

(4) In all cases, the arbitral tribunal shall decide in accorda nce with the terms

of the contract and shall take into account the usages of the trade applicable to the

transaction.

Article 29.

Dedsion-making by panel of arbitrators

In arbitral proceedings with more than one arbitrator , any decision of th e

arbitral tri bunal shall be made, unless ot herwise agreed by the parties, by a majorit y

of all its members. However, questions of procedure may be decided by a presiding

arbitrator, if so authorised by the parties or all members of the arbitral tribunal .

Article 30.

Settlement

(1) If, during arbitral proceedings, the parties sellle the dispute, the arbitral

tribun al shall termimnc the proceedings and, if requested by th e parties and not

objected to by the arbitral tribunal , record the se ttlement in the form of an arbit ral

award on agreed terms.

(2) An award on agreed terms shall be mad e in accord ance with the provisions

of artide 31 and shall state that it is an award. Such an award has the same status and

effect as any other award on the meri ts of the case.

FOnD and contents 01 award

Artide 31.

(I) The award shall be made in writing and shall be signed by the arbitrator or

arbitrato rs. In arbitral proceedings wit h more than one arbitrator, the signat ures of

the majority o f all membe rs of the arbitral tribunal shall suffice, provided that the

reason for any omitted signature is stated.

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(2) The award shall Siale: the reasons upon which it is based, unless the parties

have agreed that no reasons are 10 be given or the award is an award on agreed terms

under article 30.

(3) The award shall state its date and the place of arbitration as determined in

accordance with article 20 (1 ). The award shall be dee med to have bee n made at th at

place.

(4) After the award is made, a copy signed by the arbi trators in acco rdance

with paragraph (I) of this article shall be delivered to each party.

Article 32. nnnlnaUon 0( prO("dln~

(I ) The arbitral proceedings are termi nated by the final award or by an order

of the arbitral tri bunal in accordance with paragraph (2) of Ihis article.

(2) The arbitral tribunal shall issue an o rder for the termination of the arbitral

proceedings when

(a) the claimant withdraws his claim, unless the respondent objects the reto

and the arbitral tribunal recognises a legitimate interest on his part in obtaining

a final setdement of the dispute ;

(b)

the parties agree on the termination of the proceedings;

(c) the arbitral tribunal finds that the continuation of the proceedings has

for any other reason become unnecessary or impossible .

(3) The mandate of the arbilJal tribunaltenruna tes with 'the termination of the

arbilJal proceedings, subject to the provisions of articles 33 and 34 (4) .

Article 33.

Correction and Inurpretatlon of award, additional award

(I) Within thirty days of recei pt of the award , unless another period of time has

been agreed upon by the parties

(a) a party, with notice to the other party, may request the arbitral

tri bunal to correct in the award any e rrors in computation . any clerical o r

typographical errors or any errors of similar nature;

(b) if so agreed by the parties . a party, with notice to the o ther party, may

request the arbitral tribunal to give an interpretation of a specific point or part

of the award.

If the arbitral tribunal considers the req uest to be justified . it shall make the

correction or give the interpretation within thirty days of receipt of the request. The

interpretation sball form part o f the award.

(2) The arbitral tribunal may correct any error of the type referred to in

paragraph ( I ) (a) of tbis article o n its own initiative within thirty days ot the dale of

tbe awa rd.

(3) Unless otherwise agreed by the parties, a party, with nolice to tnc: o ther

party , may request, within thirty days of receipt of the award, the arbitral tribuna l to

make an addit ional award as 10 claims presented in the arbitral proceedings bUI

omined from the award. If the arbitral tribunal considers the requesllo be justified .

it shall make the additional award within si:u y days.

(4) The arbitral tribunal may extend, if necessary. th e period of time within

which it shall make a correction, interpretation or an additional award under

paragraph (I ) or (3) of this article.

(!i) The provisions of anicle 31 shall apply to 3 correction or interpretation of

the award or 10 an additional award.

CHAPTER VII . RECOURSE AGAINST AWARD

Article 34.

Application ror seuilll askIe as t"elusive rerount .plns! arbitral.ward

(I) Recourse to a coun against an arbi tral award may be made only by an

application for setting aside in accorda nce with paragraphs (2) and (3) of this article.

(2)

An arbitral award may be set aside by the court specified in artic le 6 onl y if

(a) the party making the application furnishes proof that

(i) a party to the arbi tration agreement re ferred to in article 7 was

under some incapacity; or the said agreement is not valid under the law to

which the parties have subjecte d it or. failing any indication thereon, under

the law of this State; or

(ii) the party making the application was not given proper notice of

the appointmrnt of an arbitrator or of the arbitra l proceedings or was

otherwise unable to prese nt his case; or

(iii) the award deals with a displlle not contemplated by o r not falling

within the tenns of the submission to arbit ration, or contains decision on

matters beyond the scope of the submission to arbitration, provided that , if

the decisions on matters submitted to arbitration can be se parated from

those not so submitted, only tha t part of the award which contains decisions

on matters not submitted to arbitration may be set aside; or

(iv) the composition of the arbitral tribunal or the arbitral procedure

was nOI in accordance with the agreement of the parties, unless such

agreement was in confl ict with a provision of this Law from wh ich the

parties cannot derogate, or. failing such agree ment , was no t in accordance

with this Law; or

(b)

the court finds that

(i) the subject-matte r of the dispute is not capable of sett le ment by

arbitrat ion unde r the law of this State; or

(ii)

the award is in confliL1 wi th the public policy of this State .

A

""

CHAPTER VIII.

RECOGNm ON AND ENFORCEMENT

OF AWARDS

Anicle 35.

Recognition and Enrooumenl

( I) An arbitral award, irrespective of the country in which it was

made, shall be recognised as binding and , upon application in writing to the

com petent coun , shall be enforced subject to the provisions of this article

and of article 36.

(2) The party relying on award or applying for its enforcemen t shall

supply the duly authenticated original award or a duly certified copy hereof,

and the original arbi tration agreement referred to in article 7 or a duly

certified copy thereof. If the award or agreement is not made in an official

language of this Slate, the party shall su pply a du ly certified translation

thereof inlO such language.-

Grounds rOC' refusing roo:IInltion or entorcemml

Article 36.

( I) Recognition or enforcement of an arbit ral award , irrespective of

th e country in which it was made, may be refused onl y

(a) at the requesl of the party agai nst whom it is invoked , if that party

furnishes 10 the competent court where re<:Ogni tion or enforce me nt is sought

proof th at

(i) a party to the arbitration agreement referred to in article 7 was

unde r some incapacity; or the said agreement is not Yalid under the law to

which the parties haye subjected it or, failing any indication thereon , under

the law of the country where the award was made ; or

(ii) the party against whom the award is inyoked was not giYen proper

notice of the appointmen t of an arbitrator o r of the arbitral proceedings or

was otherwise unable to prese nt his case; or

(iii) the award deals with a dispute not conlemplated by or not falling

within the terms of the submission to arbit ration , or it contains decisions on

matters beyond the scope of the submission to arbitration , p roYided that, if

the decision on matters submitted to arbitration can be separated from those

not so submitted , that part of the award which conta ins decisions o n mailers

submitted 10 arbilratil)1I ma y be recognised and enforced ; o r

(jy) th e composition of the arbitral tribuna l or the arbitral procedure

was not in accordan ce wi th the agreement of the parties or, failing such

agreement , was not in acco rdance with the law of the country where the

arbitration took place; or

(y) the award has not yet become binding on the pan ics or has been

sct aside o r suspended by a coun of the country in which , o r unde r the law

of which, th at award was made; or

"The <OI>dilioM .. , forth no ' hio puqnpII .re in,.nded '0 set muJ ..... m .. ODdordi. I, W<JU1d , 'h .... not be OOIIonry

.0

54.,.

..-~ion

bot ochined "" ,loot ~ low if •

rt1.Ilncd ~n ... """""" ~

A

(b)

if the court finds that

(i) the subject matter of the dispute is not capable of settlement by

arbitration under the law of this State; or

(ii) the recognition or enforcement of the award would be contrary to

the public policy of this State.

(2) If an application for setting aside or suspension of an award has been made

to a court refe rred to in paragraph (I) (a) (v) of this article. the court where

recognition or enforcement is sought may, if it considers it prope r, adjourn its

decision and may also, on the applica tion of the pany claiming recognition or

enforcement of the award, order the other party to provide appropria te security.

A

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

"arbitration agreement" means an agreeme nt as defined in

Article 1 of the Model Law;

"arbitral uibunal~ means a sole arbitrator or a numbe r of

arbitraton;

"Board" means the Board of Goveroon of the Centre;

"Centre" means the Malta Arbitration Cenue established by

section 3 of this Act ;

"Chairman" means the Chairman of the Board ;

"financial pe riod" means a period of five years commencing on

th e first J anuary of one year and ending on the thirty first day of

December of the fift h year the reafter; provided that the first

financial period of the Centre shall be the period commenci ng with

the coming into force of Part III of lhis Act and ending on the 31st

day o f Decembe r of the year next following that on wh ich the said

Part III shall have come in to force;

"Ministe r" means the Minister responsible for justice;

~Model Law" means the Mooel Law on International

Co mmercial Arbitration adopted on lune 21, 1985 by th e Un ited

Nations Commission on Int ernat ional Trade Law reproouced in

the First Schedule to this Act ;

" Registrar" means the registrar of the Centre .

PART JI

Establishment and Functions or the Centre

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

THEUNnEDNATIONSCO~ONONTHERECOGNTnONAND

ENFORCEMENT OF FOREIGN ARBITRAL AWARDS

(NEW YORK 1958)

ARTIa..E1

L This Convention shall apply to the recognition and enlorcemenl 01 arbitral

awards made in the territory of a State other than the State where the recognition and

enforcemenl of such awards are sought, and arising Oul of differences between penons ,

whether physical or legal, It shall also apply to arbitral awards not considered as

domestic awards in the Slate where Iheir recognition and enforcement are sought,

2. The lenn "arbilral awards" shall indude nOI only awards made by arbitralOrs

appointed for each case but also Ihose made by pennanent arbitral bodies to which Ihe

parties have submitted.

3. When signing, ratifying or acceding 10 this Convention, or notifying extension

under Article X hereof, any Slate may on Ihe basis of reciprocity dcclare that it will

apply the Convention to the recognition and enforcemenl of awards made only in the

lerrilory of another Contracting State. It may also declare Ihat it will apply the

Convention only to differencesarisingoul of legal relationships, whether contractual or

not, which are considered as commercial under Ihe national law of Ihe State making

such declaration.

ARTICLE II

1. Each Contracting State shall recognise an agreement in wriling under which

the parties undertake to submit to arbitration aU or any differences which have arisen or

which may arise between them in respect of a defined legal relationship, whether

contractual or nOI , concerning a subject matter capable of settlemenl by arbitralion.

2. The tenn "agreement in wriling" shall include an arbitral clause in a contract

or an arbitration agreement, signed by the parties or contained in an exchange olletten

or telegrams.

3. The court of a Contracting Stale , when seized of an action in a matter in

respect of which the parties have made an agreement within the meaning of this article

shall, al the request of one of Ihe parties, refer Ihe parties to arbilration, unless it finds

that Ihe said agreement is null and void , inoperative or incapable of being perfonned.

ARlla..E III

Each Contracting State shall recognise arbitral awards as binding and enforce them

in accordance with the rules of procedure of the territory where the award is relied

upon, under the conditions laid down in the following articles. There shall not be

imposed substantially more onerous conditions or higher fees or charges on the

recognition orenforccment of arbitral awards to which the Convention applies than are

imposed on the recognition or enforcement of domestic arbitral awards.

A RTICLE IV

1. To obtain the recogmtlon and enforcement mentioned i.1 the preceding

article, the party applying for recognition and enforcement shall, at the time of the

application , supply

(a) The duly authenticated original award or a duly certified copy thereof;

(b) The original agreement referred to in article II or a duly certified copy

thereof.

2. If the said award or agreement is not made in an official language of the

country in which the award is reli ed upon , the party applying for recognition and

enforcement of the award shall produce a translation of these documents into such

language. The translation shall be certified by an official or swo rn translator or by a

diplomatic or consular agent.

ARTICLE V

1. Recognition and enforcement of the award may be refused, at the request of

the party against whom it is invoked, only if that party furnishes 10 the competent

authority where the recognition and enforcement is sought, proof that

(a) The panies to the agreement referred to in article II were, under the law

applicable to them, under some incapacity, orthe said agreement is not valid under

the law 10 which the parties have subjected it or, failing any indication thereon,

under the law of the country where the award was made; or

(b) The party agai nst whom the award is invoked was not given proper

notice of the appoin tment of the arbitrator or of the arbitration proceedings orwas

otherwise unable to present his case; or

(c) The award deals with a difference not contemplaled by or not falling

within the tenns of the submission to arbitration, or it contains decisions on

matters beyond the scope of the submission to arbitration, provided that, if the

decision on matters submitted to arbitration can be separated from those not so

submitted, th at part of the award which contains decisions on matters submitted to

arbi tration may be recognised and enforced ; or

(d) The composition of the arbitral authority or the arbitral procedure was

.,

not in aCl;:ordance with the agreement of the parties, or, failing such agreement,

was not in accordance with the law of the country where the arbitration took place;

(e) The award has not yet become binding on the parties, or has been set

aside or suspended by a competent authority of the country III which, or under the

law of which, that award was made.

2. Recognit.ion and enforcement of an arbitral award may also be refused if the

competent author:ity in the country where recognition and enforcement is sought finds

that

(a) The subject matter of the difference is not capable of settlement by

arbitration under the law of that co untry ; or

(b) The recognition or enforcement of the award would be contrary to the

public policy of that country.

A RTI Cl..E Vt

If an application for th e seUing aside or suspension of the award has been made to

a competent authority referred to in article V(I)(e), the authvrity before which th e

award is sought to be relied upon may. if il considers it proper, adjourn the decision on

the enforcement o f the award and may also, on the application of the party claiming

enforcement of the award. order the othe r party to give ~t:itable securit y.

ARTICLE VII

L The provisions of the present Convention shall not affect the validity of

multilateral or bilateral agreemen ts concerning the recognition and enforcement of

arbitral awards entered into by the Con tracting States nor deprive any interested party

of any right he may have to avail himself of an arbitral award in the manner and to the

extent allowed by the law or the treaties of the country where such award is sought to be

' relied upon.

2. The Geneva PrOiocol of Foreign Arbi tral Awards of 1923 and the Geneva

Convention on the Execution of Foreign Arbitral Awards of 1927 shall cease to have

effect between Contracting Stales on their becomjng bound and to the extent that-they

become bound by this Conven tion.

ARTICLE VIII

I . This Convention shall be open until 31 December 1958 for signature on behalf

of any Member of the United Nations and also on behalf of any other State which is or

hereafter becomes a member of any specialised agency of the United Nations, or which

is or hereafter becomes a party to the Statute of the International Court of Justice, or

any other State to which an invitation has been addressed by the General Assembly of

the Uni ted Nations.

2. This Convention shall be ratified and the instrument of ratification shall be

deposited with the Secretary-General of the United Nations.

A RTICLE IX

L

This Convemion shall be open for accession to all States referred to in article

VIII.

,

2. Accession shall be effected by the deposit of an instrument of accession with

the Secretary-General of the U nited Nations.

ARTICLE X

1. Any State may, at the time of signature, ra!ification or accession, declare that

this Convention shall ex tend to all or any of the territories for the international relations

of which it is responsible. Such a declaration shall take effect when the Convention

enters into force for the State concerned.

2. At any time thereafter any such extension shall be made by notification

add ressed to the Secretary-General of the Un ited Nations and shall take effect as from

the ninetieth day after the day of receipt by the Secretary-General of the United

Nations of this notification, or as from the date of entry into force of the Convention for

the State concerned, whicheve r is the later.

3. With respect to those terri tories to which this Convention is not extended at

the time of signature, ratification or accession, each State concerned shall consider Ihe

possibility of taking the necessary steps in order to extend the application of this

Convention 10 such territories. subject, where necessary for conslitutional reasons, to

the consent o f the Governme nts of such territories.

ARTlCLEX I

In the case of a federal o r non. unitary State, the following provisions shall apply

(a) With respect to those articles of this Convention that come within Ihe

leais]ative juri~iction of lhe federal aut horily, the obligations of the federal

Government shall to this extent be the same as those of Contracting States which

are not federal States;

(b) With respect to those articles of this Convention that come within the

legislative jurisdiction of constituent states or provi nces which are not, under the

constitutional system of the federat ion , bound to take legislative action, the

federal Governme nt shall bring such articles with a favourable recommendation to

the notice of the appropriate authorities of constituent states or provinces at the

earliest possible moment ;

(c) A federal State Party to this Conventio n shall, at the request of anyother

Contracting State transmitted through the Secretary·Gene ral of the United

Nalions, supply a statement of the law and practice of the federation and its

constituent uni ts in rega rd to any particular provision of this Convention. showing

the extent to wh ich effect has been give n to that provision by legisla tive o r othe r

action.

ARllCLEXII

I. This Convenlion shall come into force on the ninetieth day following the date

of deposit of the third instrument of ratification or accession .

2. For each Slate ratifying or acceding to th is Convention afte r the deposit of the

third instrumenl of ratification or accession , Ihis Convention shall ente r into force on

the ninetieth day after deposit of such State of its instrument of ratification or accession.

ARllCLE );111

Any Contracting State may de nounce this Convention by a written

1. notification to the Secretary-General of the United Nations. Denunciation shall take

effect one year after the date of receipt of the Dotification by the Secretary-General.

2. Any State which has made a declaration or notificatio n under art icle X may. at

any time thereafter, by notification 10 the Secretary·General of the United Nations,

declare that this Convc ntion shall cease to e",tend 10 the territory concerned one year

after the date of the recei pt of the notification by th e Secretary-General .

3. This Convention shall continue to be applicable to arbitral awards in respect o f

which recognition or enforcement proceedings have been instituted before the

denunciatior. takes effect .

ARTICLE XlV

A Contracting State shall not be e ntitled to avail itself of the present Conven tion

against other Contracting States e",ce pt to the extent tha t it is itself bound to apply the

Conventio n.

liS

A

ARTl Ct.E xv

The Secretary.General of the United Nations shall notify the States contemplated

in artiele VUI of the following

(a)

Signatures and ratifications in accordance with article VIII ;

(b) Accessions in accordance with article IX;

Declarat ions and notifications unde r articles I, X and XI ;

(c)

(d) The date upon which this Convention en tel'S inlo force in acco rd ance

wilh article Xli ;

(e)

Denunciations and notifications in accordance with aniele XIII.

A RTla.E XVI

I. This Conve ntion. of which the Chinese, English , French , Russian and Spanish

texts shall be equally authentic, shall bedepositcd in the archives of the United Nations.

2. The Secretary Gene ral of the United Nations shall transmit a ce rtified copy of

this Convention to the States co ntemplated in aTtide VIII .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) A centre, to be known as the Malta Arbitration Centre, is

,lie Arbi'''' .....

hereby established for the pu!p>SeS and with the fullCtionsset out by this

Aa.

(2) The Centre shall be a body corporate having a distinct

legal perso nali t)' and, subject to the provisions of this Act, shall be

capable of ent ering into contracts, of aquiri ng, holding and disposing of

any ki nd of propeny for the pu rposes of its fu nct ions, of suing and of

being sued, and of doin g all such things and en tering into all such

transactions as arc incidental or conducive to the exe rcise or

pe rform ance of jls functions unde r this Act.

(3) Any documen t purporting to be an instrument made or

issued by the Centre and Signed by the Chairman o r such other member

of the Board , officer or employee of the Centre as may be se t out in a

not ice issued by the Chai rm an and published in the Gaze tt e , shaH be

received in evide nce and sha H, until the contrary is proved, be deemed

to be an instrumen t made or issued by the Centre.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

CONVENTION ON TUE SElTLEMEl'T OF INVESTMENT DISPUTES

BETWEEN STAT ES AND NATI ONA.LS 01-' OTU": R STATES

(WASIIINGTON 1965)

Prcllmhle

The Contracting Statcs

Considering the need for international co-operation for economic developme nt ,

and the role of private international investment therein ;

Bea rin ~

in mind the possibility th at from time to time disputes may arise in

connection 1Vith such investment between Con tracting States and nationals of other

Contracting States;

Recosni:sing Ihal while ~ul:h disputes would usually be subject to nat ional legal

processes, international methods of settlement may be appropriate in certam eases;

Attaching particular impo rtance to th e availability of facilities for intcrnational

conciliation or arbi tration to which Contractinl States ma y submit such disputes if th ey

so desire ;

DeSirinl toestablish such facilities unde r the auspices oflbl! International Bank for

Reconst ruction and Dcvdopmen t ;

A

Recogni si ng that mut ua l conse nt by th e panics fO submit such disputes to

conciliation or 10 arbit ration through such facili ties amstitutes a bi nding agree ment

wh ich req uires in paniClllar th at due consideration be give n to any recommendation of

conciliators. and that any arbi tral award be complied with ; and

Declari ng that no Co ntracting State shall by the mere fact of its ratification ,

acceptance or approval of this Convemion and without its consent be deemed to be

under any obli gation to submit may particular dispute to conciliation or arbitration ;

Have agreed as follows

CHAPTER I

INTERNATIONAL CENTRE FOR SETI'U:MENT OF

INVESTMENT DISPUTES

SEcrlON I

E!;tablishment and Organlsatioo

ARTfCL£ I

(1) There is hereby established the Intern ational Centre for Settleme nt of

Invest ment Disputes (herei nafter called the Ce ntre).

(2) The purpose of th e Cen tre shall be to provide faci li ties for conciliation and

arbitrati on of investmen t disputes betwe en Cont racting States and nationals of other

Contract ing States in accordance with the provisions of this Conve ntion.

ARTla..E 2

The scat of th e Centre shall be at the principal office of the International Bank for

ReconstruC1ion and Dcvelo pment (herein afte r called th e Bank) . The seat may be

moved to anoth er place by decision of th e Administ rative Council adopted by a

majority of two-t hirds of its me mbers.

ARTICU l

The Centre shall have an Admin istrative Cou ncil and a Secretariat and shall

maintain a Panel of Conciliators and a Panet of Arbitrators.

SECTION 2

The Administrath'e Courtcil

A RTlct.E •

(I) The Administrati ve Council shall be co mposed of one represe nt ative of ellch

Contracti ng State. An alte rn ate may act as representative in case of his principal's

absence from a mee ting or inability to act .

(2) In the absence o f a contrary designation , each governor and alternate

governo r of the Bank appointed by a Contracting State shall he ~;r officio its

represe r)la tive and its alte rn ate respectively.

A

ARllCLE 5

The Presidcllt 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 10 aCI and duri ng any vacancy in the office of Pre sid en I of thl! Bank , Ihe person

for the time being acting as President !;ohall act as Chairman of the Administrative

Council.

ARTICLE 6

( I) Without prejudice to the powers and functions vested in it by other provisions

ofthis 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;

(e) adopt the rulesof procedure for conciliation and arbitration proceedings

(hereinafter ealled the Conciliation Rules and the Arbitration Rules);

(d) approve arrangements with the Bank for the use of the Bank's

administ rative faci lities and services;

(e) determine the conditions of service of the Secretary-General and of any

Deputy Secretary-General;

(0 adopt the annual budget of revenue and expenditures of the Centre;

(g)

approve the annual report on the operation of the Centre .

The decisions refe rred to in sub'paragraphs (a), (b) , (e) and (0 above shall be

adopted by a mlljority of two-thirds of the members of the Administrative Council.

(2) The Admi nistrative Council may appoi nt such committees as it considers

necessary.

(3) The Administ rative Council shall also exercise such other powers and

perform such other functions as it shall de termine to be necessry for the implementation

of the provisions of th is Convention.

ARllCl E 7

(1) The Administrative Counci l 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 Coum;:il 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.

A

(4) The Administrative Council may establish, by a majority of two-thirds of its

memben, a procedure whereby the Chairman may seek a vOle of the Council without

convening a meeting of Ihe Council. The vote shall be considered valid only if the

majority of the memben 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 Cenlre.

SECTION 3

The Secretariat

ARTICLE 9

The Secretariat shall consist of a Secretary-General, one or more Deputy

Secretaries-General and staff.

ARTICLE 10

(I) The Secretary-General and any Deputy Secretary-General shall be elected

by the Adminimative Council by a majority of two-thirds of its members upon the

nomination of the Chairman for a term of service not exceeding six yean and shall be

eligible for re-election. Afte r wnsulting the members of the Administrative Council,

the Chairman shall propose one or more candidates for each such office.

(2) The offices of SeHetary-General and Deputy Secretary-General shall be

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 Cou nci l.

(3) During the Secretary-Generars absence or inability to aCI, and during any

vacancy of the office of Secretary-General, the Depu ty Secretary-General shall act as

Secretary-General. If there shall be rp.ore than one Deputy Secretary-General, the

Administrative Council shall determine in advance the order in which they shall aCI as

Secretary-General.

A RTICLE 11

The Secretary-General shall be the legal representalivc and the principal officer of

the Centre and shall be responsible for its administration , including the appo intment of

staff, in accordance with the provisions of this Convention and the rules adopted by the

Administrative Council. Hc shall perform the function of registrar and shall have the

power to authenticate arbit ral awa rds rendered pursuant to this Convention, and to

certify wpies thereof.

A

SECT'IQN 4

Th . ......

ARTIClE 12

The Pane l of Conciliators and the Panel of Arbi trators shall each consist of

qualified persons, designated as hereinafter provided , who are will ing to se rve thereon.

A RTIO-E 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 pe rsons so

designated to a Pan el shall each have a different nat ionality.

(1) Persons designated to se rve on the Panels shall be perso ns of high moral

character and recognised co mpe tence in the fi elds of law, commerce, industry or

finance, who may be relied upon to exe rcise indepe ndent judgemen t. Compe tence in

the field of th e law shall be of particular importance in the case of persons on th e Panel

of Arbitrators.

(2) The Cha irman, in designati ng pe rsons to serve on the Panels, shall in addi tion

pay d ue regard to the importance o f assuring represen tat ion on the Panels of the

principal legal syste ms of the world and of the main form s of eco no mic activity.

A RTI Q.E IS

(1)

Panel members shall se rve for re newable periods of six years.

(2) In case of death or resignat ion of a member of a Panel, the au thority which

designa ted the membe r shall ha ve the righllO designate anoth er pe rson 10 se rve for the

remainder of that member's te rm .

(3) Panel members shall continue in office until their successors have been

dcsignated .

ARTICLE 16

A perso n may se rve o n both Pll neis.

(1)

(2) If a person shall have bee n deSig nated 10 se rve on the same Pane l by more

than one Contracting State, or by one or more Co nt racting Sta tes and th e Chairman, he

shall be deemed to have bee n design ated by the authori ty wh ich first designated him or,

if one such au thority is the State of which he is a national by that State.

(3) All designati ons shall be notified to the Secreta ry-General and shall take

effect from the date on whi ch the not ificat ion is received.

.

SECTION 5

Financing the Cent~

ARna..E 17

If the expe nd iture 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 Slates which

arc members of the Bank in proportion to their respecti ve subscriptions to the capital

stock of the Bank , and by Conlracting States which are not members of th e Bank in

accordance with rules adopted by the Administrative Council.

SECTION 6

Status, Immunities and Privileges

AR11 CLE 18

The Centre shall have full intemationallegal personality. The legal capacity of the

Centre shall include the capacity

(a)

!ocontract;

(b)

to acquire and dispose of movable and immovable property ;

(c)

to institute legal proceedings.

ARTICLE lq

To enable the Centre to fulfit its functions, it shall enjoy in the territories of ea\:h

Contracting Centre the imm unities and privileges sct fonh in this Section.

ARTICLE 20

The Centre, its property and assets shall enjoy immunity from all legal process,

except when the Centre waives this immunity.

AIt·nC\..E 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 Anide 52 , and the officers and employees of the Secretariat

(a) shall enjoy immunity frum 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 imm unities from

immigration restrictions, al ien registration re<[uirements and national service

obligations, the same facilities as rega rds exchange restrictions and the same

A

treatm ent in respect of travelling facilities as are accorded by Contracting States to

the representatives, officials and employees of compara ble rank of other

Contracting States.

A RTIQ..E 22

The provisions of Article 2 1 shall apply to persons appearing in proceedings under

this Convention as panies, agents, counsel , advocates, witnesses or experts: provided ,

however, that sub-paragraph (b) thereof shall apply only in connection with their travel

to and from , and their stay at , the place whe re the proceedings arc held .

A RTICLE 2J

(I) The archives of the Ce ntre shall be inviolable wherever th ey may be.

(2) With regard to its oWcill comm unica t ions, the Cen tre sh all be accorded by

each Contracting State trea tment not less favourable than that accorded to other

international organisations.

ARTIa.E 2~

(I) 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 fo r the collection o r

payment o f any tllXes or customs duties.

Except in the case of local nationals, no tax shall be levied on or in respect of

(2)

expense a llowances paid by th e Centre to the Chairman or members of the

Administrative Council, or o n or in respect of salaries, expense allowances or othe r

emolumen ts paid by the Centre to officials or employees of the Secretariat.

(3) No lax shall be levied on or in respect of fees or expense allowances received

by persons acting as conciliators, or arbi trators, 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 th e place where such fees or allowances are paid.

CHA PTER [I

J URlSDICTION OF THE CENTRE

ARTICLE 2j

(I ) The jurisdiction of the Ce ntre shall ex tend to any legal dispute arising di rectly

ou t of an investment , between a Con tracting State (or any constiWenl subdivision o r

agency of a Con tracting State designated to the Cen tre by that State) and a national of

anothe r Con tract ing State, wh ich the panies to t he dispute consen t in writing tosubmit

to the Centre. When the panies have give n their consen t , no pany may withdraw its

consent unil aterall,.

(2)

"National of anot he r Contracting State" means

(a) any natural person who had the nat ional ity of a Contracting State other

than the State party 10 the dispute on the date on which the parties consented to

submit such dispute !oconeilia!ion or arbitra tion as well as on th e dat e on which the

request was regi ste red pursuant to paragraph (3) of Anicle 28 or paragraph (3) of

Article )6, but does not include any person who on either da le also had the

nationality of the Contracting Slale party to the dispu te; and

(b) any juridical person which had th e nalionality of a Contracting State

other than the State party 10 Ihedisputeon the dale on which the paniesconsented

to submit such dispute to conciliation or arbitration and any juridical person which

had the nationality of the Contracting State party to th e dispute on that date and

which. because of foreign control , the parties have agreed should be treated as a

nat ional of anot her 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 thai no such

approval is required.

(4) Any Contracting State may, at the time of ratification , acceptance or

approval of Ihis Convention or at any time the reafter, nOlify the Centre of the ~ 1llS6 or

classes of disputes wh ich it would or would nOI consider submitting tothe jurisdiction of

Ihe Centre. The Secretary-General shall forthwith transmit such notification to all

Contracting Stales. Such notification shall not constitute the consent requi red by

paragraph ( I).

AIITIa.E .!6

Consent of the parties to arbitration unde r this Convention shall, unless otherwise

stated, be deemed consent to such arbitration 10 the exclusion of any other remedy. A

Contracting State may require the exhaustion of local administrative or judicial

remedies as a conditio n of its consent to arbitratio n under this Convention.

(I) No Contracting Slate shall give diplomatic protection, or bring an

international claim , in respe<!1 of a dispute whi~h one of its natiomtls and anothe r

Contracting State shall have consented to submit o r shall have submitted 10 arbil ration

under this Convention, unless such other Contracting State shall have failed to abide by

and comply with the award rendered in such dispule.

(2) Diplomatic protection , for th e purposes of paragraph (I) , shall not incl ude

info rmal diplOOlalic exchangcs for the sole purpose of facilitating a settlemen t of the

dispute.

A

CHAPTER III

CONCIUATION

SEC nON I

Rtqlte5t lor Conciliation

A RnCLE 21!

(I)

Any Cr>ntracting State or any national of a Contracting Siale wishing 10

institute conciliatio n procud ings shall address a request to th at effect in writing to the

Secretary-G eneral who shall send a copy o f the re(juts! to the olher party.

(2) The request shall contai n information concerning the issues in dispute, the

identity of the parties and their consent to concilia tion in acco rdance with th e rules of

procedure for tb e inslilUlion of conciliation and arbitration proceedings.

(3) The Secreta ry-General shall register the req uest unless he finds, on Ihe basis

of Ihe info rmation contained in the request , that the dispute is manifestly outside th c

jurisdiction of th e Ce ntre . He shall forthwit h notify Ihe parties of regi strati on or refusal

to register.

SECfION 2

Constitution or ltle ConciliaUon Commwion -

ARTla...£ 29

( I) The Conciliation Commission (herei nafter called the Commission) shall be

constituted as soon as possible after registrat ion of a request pursuan t to Article 28.

(2) (a) Th.: Co mm ission shall consist of a sole co nciliato r or an y un eve n

number of conciliators appointed as the parties shall agree.

(b) Where the pa rt ies do not agree upon the nu mber of conciliators and the

method of the ir appointment, the Co mmissio n shall consist of three conciliators,

o ne conciliator appointed by each party and the third, who shall be the president of

the Commission , appoin ted by agreement of the partics.

A RTICLE )Q

If the Commission shall not ha ve bee n co nstituted within 90 days after notice

of registration of the request has bee n dispa tched by th e Secretary·General in

accord ance with pa ragraph (3) of Article 28, or such other period as th e parties

may agree, the Chairman shall . at the request of ei ther pany and after consulting

both p arties as far as possi ble , appoint the conciliator or conciliators not yet

appoi nted.

ARTICLE 31

(1 ) Conciliators may be appointed from o utside th e Panel of Co n"ciliators,

except in the case of appoi ntments by the Chairman pu rsuan t to Article 30.

A

(2) Conciliators appointed from outside the Panel of Conciliators ~han possess

the qualities stated in paragraph (1) of Article 14 ,

SECfION 3

Conciliation Procftdlngs

ARTTCl£ 12

(1) The Commission shall be the judge of its own competence.

(2) Any objection by a pany to the dispute that dispute is not within the

jurisdiction of the Ce ntre , or for other reasons is nOI within the competence of the

Commission , shall be considered by the Commission which shall determine whethe r 10

deal with it as a pre liminary question or to join it to the merits of the dispute .

ARTICLE 3l

Any conciliation proceeding shall be conducted in acco rd ance with the provisions

of this Section and except as th e panics otherwise agree, in accordance with the

Conci lia tion Rules in effect on the dale Or! which the parties consenle1 to oonciliation.

If any qu estion of procedure arises which is not covered by this Section or the

Conciliation Rul es or any rul es agreed by the parties, the Commission shall decide the

qu estion.

ARTI CLE 301

( I) It shall be the duty of the Commission to clarify th e issues in dispUle between

th e parties and to endeavour to bri ng about agreement betwee n them upon mutually

acceptable te rms. To th at end , the Commission may at any stage olthe proceedings and

from lime to tim e reco mmend terms of settlement to the parties. The panies shall

coope rate in good faith with the Commission in order to enable the Commission to

carry out its fu DCltons, and shall give their most serious consideratrion to its

recommcnoations.

(2) If the panies reach agree ment , the Commission shall draw up a repon !"IOting

the issues in d ispute and record ing that the panies have reached ag·eemenc. If, at any

stage of the proceedings, it appe ars to the Commission that there is no likelihood of

agree ment between the parties, it shall close the proceedings and shall draw up a report

noting the su bmission of the dispute and recordina the failure of the panies to reach

agreemen t. If one pany fai ls to appear or participate in the proceedings the

Co mmission shall close the proceedings and shall draw up a repon noting that pany's

failure to appear or participate.

ARTlO.E II

Except as the parties to the di spUle shall oth el"'A'ise agree , neither party to a

conciliation proceedings shall be en titled in any other proceeding, whether before

arbitrators or in a court oC law or otherwise, to invoke or re lyon any vieW5expressed o r

stateme nts or admissio ns or offers of settl ement made by the other party in the

conciliation proceedings, or the report or any recommendatio ns made by the

Co mmission.

A

CHAPTER IV

ARBITRA nON

SEcnON 1

Request for Aroitratioo

ARTICLE :16

(I) Any Contracting State or any national of a Contracting State wishing to

institute arbitration proceedings shall address a request 10 that effect in writing to the

Secretary-General who shall se nd a copy of the request to the other party.

(2) The req uest shall contain information concerning the issues in dispute , the

identity of th e parties and their consent to arbitration in 3C1,:ordance with the rules of

procedure for the institution of conciliation and arbitration proceedings.

(3) The Secretary-General shall register th e requ est unless he fi nds, on the basis

of th e information contained in the request, that the dispute is manifestly outside the

jurisdiction of th e Centre. He shall forthwith nOlify the parties of registration or refusal

to register.

SECTION 2

Constitution of the Tribunal

ARTICLE 31

(I) The Arbitral Tribunal (hereinafter called the Tribunal) shall be constituted as

soon as possible after registralion of a request pursuant to ATlicie 36.

(2) (a) The Tribunal shall consist of a sole arbitrator or any uneven number of

arbitrat ors appointed as th e paTlies shall agree.

(b) Where th e parties do not agree upon the num be r of arbitrators and the

method of their appointment, th e Tribunal shall consist of three arbitrators, one

arbitrator appoin ted by each paTlyand the third, who shall be the president of the

Tribunal, appointed by agreement of the paTlics.

ARTICLE 38

If the Tribunal shall not have been constituted within 90 days afte r notice of

registration of the requ est has been dispa tched by the Secretary-General in accordance

with paragraph (3) of ATlicle 36, or such other period as the parties may agree, the

Chainnan shall, at the request of eit her party and after consulling both parties as far as

possible, appoint the arbitrator or arbitrators not yet appointed. Arbitrators appointed

by the Chainnan purs uant to this ATlide shall not be nationals of the Co ntracting State

party to the dispute or of the Contracting State whose national is a paTly 10 th e dispute .

A

The majority of the arbi trators shall be nationals of States ol her than the

Contract ing Slate party to the dispute and the Conlfdcting Stale whose national is a

pa rt )' to the dispute; provided , however . that the foregoing provisions of this A rticle

shall not " ppl)' if the sole arbil ratoror each individual member o(the Tri bun al has bee n

appointed by agreement of the parties.

A RTl CLE «I

(I) Arbitrators may be appointed from outside the Panel of Arbitrators, Clttept

in the case of appoi nt men ts by the Chainnan pursuanllo Aniele 38.

(2) Arbit rators appointed from oulSide the Panel of Arbitrators shall possess the

qualit ies staled in paragraph ( 1) of An icle 14.

SECTION 3

Powers and Functions or the TribuJl81

(I) The Tribunal shall be the judge of its own compelencc.

(2) Any objection by a party 10 the dispute that is not within the jurisdict ion of the

Cen tre, or fo r othe r reasons is not withi n the competence of the Tri buna l, shall be

considered by the Tri bu nal which shall determi ne whet her to deal with it as a

preliminary question or to join il 10 the merits of the dispute.

( I) The Tri bunal shall decide a dispute in accordance with suc h rul es of law as

may be agreed by the parties. In the abse nce of such aglee ment, th e Tribunal shall

apply th e law of the Contracting State pa rt y to th e dispute (including its rules on th e

conflict of laws) and sLich ru les of inte rn at ional law as may be applicable.

(2) The Tribunal may not bring in a findi ng of rwn JUj/at on the gro und of silence

o r obscurity ofthe law.

(3) The provisions of paragraphs (1) and (2) shall nOl prej udice the powe r o f the

Tri bunal 10 decide a dispute ex aequo el bono if the part ies so agree .

Except as the parties otherwise agree, the Tribu nal may, if it dee ms it necessary at

any state of the proceedings.

(a) call upon the pan ics to produce documents or other evidence, and

(b) visit the scene connected with the dispute, an d conduct such enquiries

there as it may deem appropria te .

A

Any arbitration proceeding shall beconducted in accordance with the provisions of

Ihis Section and, except as the parties otherwi se 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 nOI covered by this Section or the Arbitration

Rules or any rules agreed by the panies, the Tribunal shall decide the question.

ARTICLE 43

(I) Failure of II party to appear or to prese nt his case shall nol be deemed an

admission of tbe other party's assertions.

(2) If II party fails to appear o r to present his case at any stage of the proceedings

the other party may request the Tribunal to deal wi th th e questions submitted to it and

to render an award. Before rendering an award , the Tribunal shall notify , and grant a

period of grace 10, th e party failing to appear or to presenl il case . unless it is satisifed

that party d~ not intend to do so.

ARllCU;: 46

Except as the parties otherwise agree, th e Tribunal shall , if requ ested by a party,

uetermine any incidental o r additinal claims or counlcr-claims arising directly out of the

subject-matter of the dispute provided th at they are within the scope of th e consen t of

the parties and are o therwise with in the jurisdiction of the Centrc.

Except as the parties otherwise agree, the Tribunal may, if it considers that the

ci rcumstances so require, recommend any provisional me asures which should be taken

to preserve the respective rights of either party.

SECTION 4

The Award

A RTICLE 48

(1) The Tribunal shall decide questions by a majority of th e votes of all its

members.

(2) The award of the Tribunal shall be in writing and shall be signed by th e

members of the Tribunal who voted for it.

(3) The award shall deal with every question submitted to the Tribunal, and shall

sta te th e reasons upon which it is based .

(4) Any member of the Tribunal may attach his individual opinion to the award,

whether he dissenls from the majority or not , or a statem ent of his dissent. .

(5)

The Centre shall not publish the award without the consent of the parties.

A

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 pany made within 45 days after the date

on which the award was rendered may afler notice 10 the other party d«ide 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 pan of the award

and shall be notified to the panies in th e same manneras the award. The periods of time

provided for under paragraph (2) of Anicle 51 and paragraph (2) of Artide52 shall run

from the date on which the decision was rendered.

SECTION 5

Interpretation, Revision and Annulment or the Award

ARTICLE 50

(1) If an)' dispute shall arise between the parties as to the meaning or scope of an

award, eith er paf\y may request interp retation of th e award by an application in writing

addressed to the Secretary-General.

(2) The request shall . if possible. be submiued to the Tribunal which rendered

the award. If Ihis shall not be possible , a new Tribunal shall be constituted in

accordance wit h Section 2 of this Chapler. The Tribunal may, if it considers that the

circumstances so requi re, stay enforcement of the award pending its decision.

ARTICLE 51

(I) Eighter paf\y may request revision of the award by an application in writing

addressed to the Secret"ry-Gelleral 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 da le on which the award was rendered.

(3) The request shall, if possible, be submitted to the Tribunal which re nd ered

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

enfo r,;,:ement 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.

A

ARllCLEn

(I) Either pl'_rty ma y request annulment of the awa rd 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 ;

that the Tribunal had manifestly exceeded its powers;

(b)

(e) that there was corruption on the pan of a member of the Tribun al;

(d) that the award has failed to state Ihe 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 di scovery of the

corruption and in any even t within three years after the date on which the award was

rendered.

(3) On receipt of the requ est the Cbainnan shall forthwith appoint from the

Panel of Arbitratorsan ad hoc Committee of three persons. None of the mem bers of the

Commiltee shall have been a member of the Tribunal whieh rendered the award , shall

be or the same nationalit y as any such member, shall be a national of the State party to

the dispute or of the Stale whose national is a party to the dispUle , shalt have been

designated to th e Panel of Arbi trators by either of th ose States, o r shall have acted as a

conciliator in the same dispute. The Committee shall have the authority to annul the

award o r any part thereof o n any o f the grounds set forth in paragraph (1).

(4) The provisions o f Articles 41 -45, 48, 49, 53 and 54, and ofChaplers VI and

VII shall apply mutatis mUlIlndis to proceedings before th e Committee.

(5) The Committee may, if it considers th at circumstances so require, stay

enforcement of .he award pending its decision . If the applicant requests a stay of

enforcement of the award in his application, enforcement shall be stayed provisionally

untillh e Committee rules on such request.

(6) If the award is a nnu lled the dispute shall , at the request of ei ther party, be

su bmitted to a new Tribunal constituted in accordance with Section 2 of this Chapte r.

SECTION 6

Recognition and Enrorament or the Award

AR11CLESl

(1) The awa rd shall be binding on the parties and shall not be subject to any

appea l or toany other remedy exceptt l"lose provided for in th is Convention . Each party

shall abide by and com ply with the te rms of the award exce pt ( 0 the eXlent Ihat

enfo rcement shall have been stayed pursuant to the relevant provisions of this

Convention .

A 13"

(2) For the: purposes of Ihis Section , "award" shall include any decision

interpreting, revising or an nulling such award pursuant to Anicles SO, 51 or 52.

A RTICLE Sol

(1) Each Contracting State: shall recognise an award rendered pursuanllo this

Conven tion as bindi ng and enforce the pecuniary obligations imposed by that award

within its territories as ifit wcn:: a final judgement of a court in that Siale. A Contracting

State with a federal constitution may enroree such an award in or through ils federal

courts and may provide that such courts shall treat the award as if it wefe a final

j udge ment of the co urt s o f a constituent stale.

(2) A party seeki ng recognition or enforcemen t in the lerritories ofa Conlracting

State shall furnish to a competen t court o r other aut hority wh ich such State shall have

designated for this purpose a copy of the award certified by the Secretary-General.

Each Contracting State shall nOlify 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 judge ments in force in the State in whose territories such execution is

sought .

AII.TICl...ES5

Nothing in Article 54 shall be construed as derogating from the law in force in any

Contracting State relati ng to immunity of that State or of any foreign State from

execution.

CHA PTER V

REPLACEMENT

AND

DISQUALIFICATION

OF

CONCILIATORS

AND

ARBITRATORS

AII.TIa..E 56

(I) After II Commission or a Tribunal has been constituted and proceedings have

begun , ils composition shall remain unchanged; provided, howevcr, that if a conciliator

or an arbit rator should die , become incapacitated , or resign . the resulting vacancy shall

be filled in accordance with the provisions of $cction 2 of Chapter III or Section 2 of

Chapter IV.

(2) A membcr 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 conciliato r or an &rbilrator appointed by a party shall h& ve resigned

without the consent o f the Commission or Tribunal of which he was a member. the

Chairman shall appoint a person from the appropriate Panel 10 fill the resulting

vacancy.

A

ARTTCLE S7

A party may propose to a Commission or Tribunal the disqu alification of any of its

members on account of any fact indicating a manifest lack of the qualities required by

paragraph (I) of Article 14. A party to arbitration proceedings may, in addi tion,

propose the disqualification of an arbitrator on the ground that he was ineligible for

appointment to the Tribunal under Section 2 of Ctapter IV.

ARTTo..E$II

The decision on any proposal to disqualify a conciliator or arbi tflltor shall be taken

by the other members of the Commission o r Tribunal as the case may be, provided that

whe re 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 arbitrators, the

Chairman shall, take th at 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

wit h the provisions of Section 2 of Ctapter 1II or Section 2 of Qapter IV.

CHAPTER VI

COST OF PROCEEDINGS

ARTTCl£59

The charges payable by the parties for the use of the facilities of the Centre shall be

determ ined by the Secretary.General in accordance with th e regulations adopted by the

Administrative Council.

ARTICLE60

(I ) Each Commission and each Tribunalshall determine the feeund expenses of

its members within limits established from time to time by the Administrative Council

and after consultation with the Secretary-Ge neral.

(2) Nothing in paragraph (1) of this Article shall preclude the parties from

agreeing in advance with the Commission or Tribunal concerned upon the fees and

expenses of its members.

AR11Cl£b l

(1) In the case of conciliation proceedings the fees and expe nses of members of

the Commission as well as the charges for the use o f the facilit ies of the Centre , shall be

borne equally by the parties. Each party shall bear any other expenses it in(:llrs in

connection with the proceedings.

(2) In the case of arbitration proceedings the Tribunal shall , except as th e panies

otherwise agree, assess the expenses incurred by the parties in connection with the

proceedings, and shall decide how and by whom those expe nses, the fees and expenses

of the members of the Tribunal and the charges for the use o f the facilities of the Centre

shall be paid . Such decision shall form part of the award .

A

CHAPTER VII

PLACE OF PROCEEDINGS

ARTlCLE62

Conciliation and arbitration proceedings shall be held at the seat of the Centre

except as hereinafter provided.

ARTlCL.E6J

Conciliation and arbitration proceedings may be held, if the panies so agree,

(a) at the seat of the Perm anent Court of Arbitration or of any other

appropriate institution , whether priva te or public, wit h which the Centre may

make arrangements for that purpose; or

(b) at any other place approved by the Commission o r Tribunal after

consultation with the Secretary-General.

CHAPTER VlII

DISPUTES BETWEEN CONTRACTING STATES

ARTlCLE M

Any dispute arising betwccn Contracting States concerning the interpretation or

applicatton of this Convention which is not scttled 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 scttlement.

CHAPTER IX

AMENDMENT

ARTlCL.E6.5

Any Contracting St ate may propose ame ndment of this Convention. The text of a

proposed amendme nt shall be communicated to the Secretary-General not less than 90

days prior to the mccting of the Administrative Council at which such amendment is to

be considered and shall forthwith be transmitled by him to all the mem bers of the

Administrative Council.

ARTlCLE66

(I) If the Admi nistrative Council shall so decide by a majorilyof two- Ihirds of its

me mbers, the proposed amendment shall be circulated to all Contracti ng States for

ratification, acceptance or approval. Each amendment shall enter into force 30 days

after dispatch by the depository of this Convention Qf a notification to Contracti ng

States that all Contracti ng States have ratified, accepted or approved the amendment .

A

(2) No amendment shall affect the rights and obligations unde r this Convention

of any Conlracting State or of any of its consti tuent subdivisions o r age ncies, or of any

national of such State arising out of consent to the jurisdiction of the Centre give n

before the dale of ent ry into force of the amendment.

CHAYI'ER X

FINAL PROVISIONS

AR11<1E 67

This Convent ion shall be o pen for signature on behalf o f States membe rs 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 Coun of Justice and which th e AdministrativeCouncil,

by a vote of two-thi rds of its members, shall have invited to sign the Convention.

ARnCLE611

( I) This Con ve ntion shall be subject to ratifi cation , acceptance or approval by

the signatory States in accordance with their respective constitutional procedures.

(2) This Convention shall enter inlo force 30 days aher the date of de posil of the

twentieth inslrument of ratification , acceptance or approyal. It shall enter into force for

each State which subsequently deposits its instrument of ratifi cation, acceptance or

apprOYal 30 days after the date of such deposit .

A RTla.E(IJ

Each Contracting State shall lake legislative o r other measures as may be necessary

for makin g the provisions of this Convention effective in its territories.

ARnO£ 70

Th is Conve ntion shall apply to all territories for whose international relations a

Contracting State is responsible, except those which are excl uded by such State by

written notice to the depository of this Conventi on either at Ihe time of ratirlCation ,

acceptance or approya l or subseq uen tly.

ARTICLE l l

Any Contracting State may denounce this Conve ntion by written notice to the

depository of this Convention. The denun ciatiOn shall take effect six months aher

receipt of such DOtice.

ARTlO£71

Notice by a Contracting State pursuant to Article 700r71 shall not affect the rights

or obliga tions under th is Conve nt ion of that State or of any of its constitue nt

subdivisions o r age ncies or of any national of that State arising out of consen t to the

juri sdiction of the Ce ntre given by one of th em before such notice was recei ved by the

deposi tory.

A

ARTICLE n

InSlrumenlS of ratification , acceptance o r approval of this Conven tion and of

amendments thereto shall be deposited with the Bank which shall act as the depository

of' Ihis t:onvenlion. The depository shall transmit certified copies o f this Convention 10

States members of th e Bank and 10 any other State invited to sign the Conventi on.

ARTICLE ,.

The deposit ory shall register Ihis Convention with th e Secretariat of the Un ited

Na tIO ns in aIXordance wilh Article 102 of the Charter of the United Nations and the

Regulations the reunde r adopted by the Gene ral Assembly.

ARTlC\.E7S

The deposilOry shall nm ify all signatory States of the following

(a)

signatures in accordance with Article 67;

(b) deposits of instrume nts o f ratifica tion, acceptance and approval in

accordance with Art icle 73;

(c) the dale on whic h this Con ven tion enters into force in accordance with

An icle 68;

(d)

exclusions fro m territorial application pursuan t to Article 70;

(e) the date on which any ame ndment ofthis Convenlion enters into foree in

accordance with Article 66; and

(0

denunciation in accorda nce with Anicle 71.

DONE at Washington in the English , French and Spanish languages, all three texIS

being equ all y au th entic, in a single copy which shall remain deposited in the archi ... es of

th e International Ban k for Reconst ruction and Development, which has indicated by

its signature below its agreement to fulfi l th e functi ons with whid l it is charged under

this Co nventio n.

FO U RT II SCll[oDULE

First Column

S«ond Column

1. The words ··or under an award made and deposited

Codoo'

Organization and Civil in accordance with the provisions contained in Title XVI of

Book Third of thi s Code,~ in section 945 the reof shall be

Procedure

deleted, and the wo rds "the judgment or award, ~ in th e said

(Cap. 12).

section shall be s ubstituted by the words "the judgme nt ,".

2. Section 968 thereof shall be substi tuted by the

following new section

A

Second Column

968. (1) Subject to the provision of

"A,b;lra'

subsection (2) of this section , any I;ause ronl;eming

any matter in dispute whkh has been brought

before a rourt of civil jurisdiction in Malta may be

submitted at th.e request of all the parties for

determination by arbilration , under the provisions

of the Arbitration Ad, 1996, and the provisions of

the aforesaid AI;t shall apply thereto.

(2) Any submission to arbitration in

regard to any dispute concerning questions of

personal status including those relating to

separation or annulment of a marriage between

husband and wife, or in regard to things or rights

whkh may not form the subj ect-matter of a

contract, whether absolutely or without certain

formalities required by law, is null . ".

3. Sections 970 to 987 thereof shall be deleted.

Immediately before Sub-title I of Title XXV thereof and after

section 2117 thereof there shall be added the following new

section

2117A. With. regard to prescription, the

referral of any matter to arbitration in accordance

with the provisions of the Arbitration Act, 1996

shall have the same effect as ajudicial action before

a competent court.".

The words "and includes an award in proceedings on an

arbitration if the award has, in pursuance of the law in force in

th e place where it was made, become enforceable in the same

manner as a judgment given by a oourt in that place ;" in the

definition of the term "judgment" in section 2 thereof shall be

deleted.

Passed by the House of Representatives at Sitting No. SOl) of the 17th January,

1996. LAWRENCE GONZI

Speaker

RI C HARD J. CAUCHI

Clerk 10 the House of Representatives.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( I) There shall be a Board which shall be responsible for Ihe E.>t.blMment

policy and general administration of the affairs and busi ness of the .n<! """"p<>5irion

Cent re.

(2) The Boa rd shall consist of not less than five and not more

than nine members, appoin ted by the President of Malta acting on the

advice ofthe Minister, one of whom sh all be designated by t he Mi nister

as Chairman . The Minister shall also designate another member as

Deputy Chairman an d such member shall have all th e powers an d

pe rform all the functions of the Chairma n during his absence, o r un til a

new Chairman has been appointed following the resignat ion ,

term ination of appointme nt, or ceath of the Chairman.

(3) The Minister shall select th e members of the Board from

a mong persons who appear 10 him to be qualified by rcason of having

h ad cJtperience of and shown capacity in man crs relating to

inte rn ational or domestic arbitration, co nciliation and the settlement of

d ispu tes, international trade, commerce, industry, investment and

marit ime affa irs; the Attorney General shall be an ex offlCiQ member of

tbe Board .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

l\ person shall nOi be qual ified to be appoin ted Chairman or

Deputy Chairman o f the Board unless he has practised as an advocate in

M alt a fo r a period or periods amountin g in th e aggregat e to not less than

twelve years.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

Subject to the prOvisions of sections 4, 7 and 9 of Ihis Act, the

members of the Board shall hold office fo r a six year period and on such

terms and conditions as the Minister may deem appropriate; and a

membe r shall , On ceasing to be II member , be eligible for re-

appoin tmen t

Provided that th e Ministe r may at any time, on the

recommendat ion of th e Commission for the Administration of Justice

established under section lOlA of the Constit ution of Malta, terminate

th e appoin tment of a member o f the Board if in his opi n ion, confirmed

by the recommendation of the said Commission as aforesaid , such

member is unfit to continue in office o r has become incapable of

properly performing his duties as me mber of the Board, and the said

Co mmission is hereby vested with the function and power 'to make a

recomme ndat ion to the Minister as aforesaid.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

A person shall be disq ualified for appointment to, or from

remaining , a membe r of the Board if he

(a)

is legally incapacitated; o r

(b) has been adjudged ban krupt unde r the law of any

country or has made a composition o r arrangement with his

creditors; or

(c) has been convicted of a crime affecting public trust , or

theft or fraud ; or

(d) save as provided in subsection (3) of sectio n 4, is a public

office r; o r

(e) has any financia l or oth er interest in an y ent erprise or

activi ty which is li kely to affect prejudiciall y the discharge of his

functions as a member o f the Boa rd .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) Any member of the Board may resign his office by letter Resi, ... tiOllS.

addressed to the Minister.

(2) The appoimmenl of any person as member of the Board,

and the termination of office or resignation of any such person, shall be

notified in tbe Gazette.

,. (1) The Centre shall have a Registrar, who shall also be the RegistraraBd

Secretary of the Board.

OCher employees

of the Cen're,

(2) Subject to the provisions of the Constitution and of any

other cnactment applicable thereto, the Regislfar and the other

employees of the Centre shall be appointed by the Board under such

terms and conditi ons as the said Board shall deem appropriate.

(3) The legal representation of the Centre shall be vested in

the Regislfar, or any other person so authorised by the Board.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I)

The functions of the Centre shall be;

Func:lions of the

Cen,re,

(i) (a) to promote Malta as a centre for international

commercial arbitration;

(b) to provide for the co nduct of international

arbitration in Malta;

(c) to enoou rage domestic arbitration as a means of

settling disputes;

(d) to provide the necessary facilities for the conduct of

arbitration;

(e) to advise the Government on any of the mailers

mentioned in the foregoing subparagraphs of this paragraph of

this subsection;

(f) to perform such other functions assigned to it by this

or any other law; and

(g) to pe rform any other function supplementary or

ancillary to the above.

(ii) Subj ect to the other provisions of this Act , th e Centre,

with the concurrence of the Minister, shall have power, exercisable

through its Board, to· make rules to be published in th e Gazette

providing for

(a)

procedure for arbitrations;

(b) the manner and requirements for registration of any

document under this Act;

(c) guidelines and optional models or specimens for the

drawing up of arbitration clauses and agreements; and

(d) anyolhc r matter in connection wi th wh ich rules may

be made under any provision o hh is Act.

(2)

The Centre may. from time 10 time, draw up panels of

arbitrators for domestic arbitration and panels of arbitrators for

international commercial arbi tration

Provided however that a person may be included in more than

one panel.

(3) Domestic arbitration panels may be appoi nted on

matters related to commerce, insurance, traffic collisions, building

construction, the mari time sector and such othe r fields 35 the Centre

may deem expedient from time to time. The panels shall be composed of

perwns who in the opinion of the Centre are qualified 10 call')' o Ulthe

duties and functions of arbitrators in a partia!lar fi eld of expertise.

(4) The Ce ntre shall establish an Internatio nal Arbitral

Advisory Committee of not more than five persons, including th e

Chairman of the Ce ntre, which shall have the functions to advise the

Centre on an y matt er relating to international comm ercial arbitration

and to recommend to th e Ce nt re persons, who in its opinion, are

qualified to carry oul th e duties and functions of arbitrators in

internat ional com mercial arbitrations.

(5) The Ce ntre shall , acting on the recommendat ion of the

Internat ional Arbitral Advisory Committee, appoin t panels of

arbitratoa fo r international cullllllcll..ial arbimu iun un maners such as

international trade , conme rce, insurance, investmen t and the maritime

sector.

(6) A person may be removed from any panel by tbe Ce nlre

at any tim e, and a person may at any time resign by letter addressed to

the Registrar

Provided that any such removal or resignation shall nOI be

deemed to include the removal or resignation of that person from any

arbi tra tion proceedings in which he may have already bee n appoin ted

before his removal or resignation.

(7) For the purpose of encouraging se ttlement o f a dispute ,

the Ce ntre ma y, with the agreemen t o f the parties and in accordance

with rules made by the Centre unde r this Act , employ mediation ,

conciliation or other procedures al any lime before o r during the

arbi tT3tion proceedin gs.

PART III

Finances

II . ( I) The Centre shall cause to be prepared in evcry financial

period, and shall not Later than six months before the end of each

financial period adopt , estima tes of Ihe income and expenditure of the

Centre for the nexl following financial period .

(2) The estimates shall be made oul in such fonn and shall

oollla;1I such information and such comparisons wil h pre viuus fillll",.:ial

periods as the Minister may direct . The estim ates shall take into account

such government contribution, if any, to the revenues of the Centre as

the Minister may indicate to the Cenlre that he will recommend 10 the

House of Representatives for the financial period in conside ra tion, in

accordance with section 13 of this Act.

(3) A copy of the estimates of the Centre shall upon their

adoption by the Centre, be sent forthwith bylhe Board to the Minister.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I ) The revenues of the CenlTe shall consist of the fees Re""nueoflhe

charged for the services provided by il unde r this Act and of any Centre.

governmen t contribution made in accordance with section 13 of this

Act,

(2) The Minister , after co nsult ation with the Cen tre , may

establish by regulations the fees to be charged by the Centre for any

services, facilities or any ot her matter provided by it in accordance with

this Act or in pursuance of the exerci se of its functions under th is Act.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) The Ministe r may, after consultation With the Centre (loY<llllnenl

and with any other perilOn or authority and with the concurrence of the OODtribulion.

Minister responsible for finance, indicate in wri ting to the Centre th e

amount of government contribution to be made to the Centre and to be

included in its estimates for the next financial pe riod. The indication

mad e by the Ministe r as aforesaid shall be attached to th e estimates of

the Cen tre to be forwarded to the Minister.

(2) Upon the approval of the estimates with or without

amendments as provided in this Act, th e sum approved in the estimates

as the governmen t contribution shall be paid to the Cen tre out of the

Consolidated Fund without any further authority other th an thi s Act.

(3) Notwithstanding the provisions of subsections ( I) and (2)

of this section the government contribution for the first financi al period

of the Centre shaH be of a sum of Lm200,(XX) and such su m shall be paid

to the Centre out of the Consolidated Fund without any further

authority other than this subsection .

PART IV

Domestk Arbitration

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1 ) A domestic arbitrat ion agreement is an arbitration

agreement which does not fall under Part V of this Act , and in particular

under Articll: \(3) of the Model Law.

(2) Notwithstanding the provisions of subsection (I) of this

section the parties may agree that such an agree ment shall nOl be a

domestic arbitration agreement, and shall be regulated by Pan V ofthis

Act ; however in such cases the provisions of section 58 shall not apply.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( \) In the case of II do mestic arbitration agreement , falling

under subsection (I) of section 14, disputes shall be se ltled in

accordance with the provisio ns of this Pan , subjecl lo such mod ification

as (a) the parties may agree upon in wri ting, and (b) may be permined

by law.

(2) An a rbitration agreement shall be valid if the subject

matte r of the di spute is capable of sen lemcnl by arbitration.

(3) Notwithstanding any provision of the Code of

Organisa tion and Civi l Procedure if any pany 10 an arbitration

agreement , or any person claiming through or under him , commences

any legal proceedings in any court against any othet party to the

arbitration agreeme nt or any person claiming thro ugh or un der him, in

respect of any matler agreed 10 be refe rred 10 arbitralion, any party to

such legal proceedings may at any time before deli vering any pleadings

or taking other steps in the proceedi ngs, apply to that court to Slay the

proceedi ngs, and that court or a judge thereof, unless satisfied that the

arbi lration agreement has become inoperative or cannot proceed , or

that in fact th ere is no dispute between the parties with regard to the

matte r agreed to be referred , shall make an orde r staying the

proceedings .

(4) Wh ere the proceedings as are refe rred to in subsection

(3) have been bro ugh t before a court , arbitra l proceedings may

nevert he less be commenced or continued and an award may be mad e

while the issue is pending before the court .

(S) An y matter being the subject of a dispu te even aft er an

action th ereanent has been brough t before a court , shall , unless such

matter is one referred to in subsection (6) of this. section, be capable of

se ttlement by arbitratio n if all pan ies to the dispu te agree .

(6) Disputes, conce rn ing questions of pe rsonal civil status

incl uding th ose relat ing to personal se pa ration and annulment of

marriage, are not capable of se ttlement by arbitrati on.

(7) Any submission to dom~t ic arbitratio n made by an

admin istrator , or by any person who is not at libert y to dispose of the

thing, is null .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) For the pu rposes of this Part , any notice, includ ing a

notification, commun ica tion or proposal, is deemed to have been

ofperiodsof'"n • . received and duly not ified if it is physically delivered \0 the addressee or

if it is de livered at his hibi tual reside nce, place of business or mailin g

address, or, if none of these ca n be fou nd after ma king reasonable

enquiry , at the add ressee's last-known residence or place o f business.

NOIice shall be deemed to have bee n received on th e day it is so

delivered.

(2) For the purposes of calculat ing a period of time un der

this Part, such period shall begin to run on the day following the day

when a no!ice, notificat ion , comm unica tion or proposal is received. If

the last day of such period is a public holiday or a non-working day, the

period is extended until the first working day which follows. Public

holidays or non working days occurring during the running of the period

of time are included in calculating the period .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) The pany initiating recourse to arbitration (hereinafter

called "the c1airnanl" ) shall file wi th the Registrar, a notice of

arbitration for registra tion bYlhe Ce ntre and for onward transmission 10

the other pany (hereinaft er called kt he respond en t").

(2) Arbitral proceedings shall be dee med to comme nce on

the date on which the notice of arbit ration is received by the responden t.

(3)

The notice of arbitration shall include the follo wing;

(a)

a demand that the dispute be referred 10 arbitration;

(b)

th e nam es and addresses or the panies;

(c) a reference to the arbitratio n clause or the separate

arbitration agreement that is invoked ;

(d) a reference to the contract ou t of which , or the defined

legal re lationship in respect to which, the dispute arises;

(e) the general nature of the claim and an indication of the

amount involved . if any;

(f)

the relief or remedy sought ; and

(g) a proposal ao; to th e number of arbitrators if the parties

have not previously agreed thereon.

(4)

The notice of arbi n ation may also include

(a)

the proposals for the appointment of a sole arbitrator;

(b) the notification of the appointment of an arbi trator

referred to in section 21 ; and

(c)

the statement of claim referred to in section 29.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) Subject to the provisions of subsection (2) of this

section, the p arties may be represe nted or assisted by persons of their

choice. The names and addresses of sue h persons must be

communicated in writing to th e o ther pa rty; such communication must

specify whether the appoin tme nt is being made for purposes of

represe ntation or assistance.

(2) A legal practitioner or a pe rson nOi qualified under the

Laws of Malta ma y act on behalf of a party to an arbitral proceeding to

which this Act applies, including appearing ~ fore the arbitral tribunal,

and he shall not th ereby be taken to have breached any law of Malta

regu lat ing the practice of the legal professicn.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

If the parties have not previously agreed on the number of

arbitrators, and jfwithin fifteen days after the receipt by the respondent

of the notice of arbit ralion, the parties have not agreed that th ere shall

be only o ne arbitrator , three arbitrators shall be appointed

Provided however that if the dispute amount is under 5,000

Maltese liri, there shall be a sole arbitrator.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) If a sole arbitrator is 10 be appointed, either party may

propose to the other the names of one or morc persons, one of whom

may serve as the sole arbitrato r.

(2) If within thirty days afler receipt by a party of a proposal

made in accordance with subsection (1), the parties have not reached

agreement on the choice of a sole arbitrator, the sole arbitrator shall tit

appo inted by the Cbairman.

(3) The Chairman shall, at the request of one of the parties,

appoint the sole arb itrato r as prom ptly as possible ; his decision shall be

final and binding.

(4) In making th e appointment, the Chairman shall have

regard to such considerations as are li kely to secure the appoi ntment of

an independent and impartial arbitrator and to the members of the

Domestic Arbit ration Panels established under subsection (2)ofsection

10. (5) An arbitrator shall not be liable in damages for

negligence in anything done or omitted to be done by him as arbitrator

Provided that an arbitrator shall be liable in respect of

anythi ng wilfully done or omitted to be done by him as arbitrator where

his action or omission is attributable to malice or fraud on his part.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) If th ree arbitrato rs are to be appointed, each party shall

appoint one arbitrator. The two arbitrators thus appointed shall choose

the third arbitrator who will act as the presiding arbitrator of the arbitral

tribunal.

(2) If within thirty days after the receipt of a party·s

notification of the appointment of an arbitrator. the other party has not

notified the first parl y of the arbi trator he has appointed, the first party

may request the Chairman to appoint the second arbitrator.

(3) If within th irty days after the appoint ment of the second

arbitrator, the two arb itrators have not agreed on the choice of the

presiding arbitrator , the presiding arbitrator shall be appointed by the

Chairman.

(4) The C hairman shall apply the p rovisions of section 20,

mutatis mutandis, in any appoin tment made under the provisions of

subsections (2) or (3) of section 21.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) When the Chairman is requested to appoint an Rcq_ '" ,lie

arbitrator pursuant to section 20 or 21, the party which makes the Choinnltl

appoin' on

request shall lile with the Registrar a notice for an appointment and orbi'''''Df .

refer therein to the notice of arbitration filed under section 17.

'The Centre may require from either party such

(2)

information as may be deemed necessary to fulfil its function .

(3)

Where persons are proposed for appointment as

arbitrators, their full names, addresses and nationalities together with a

description of their profession, qualifications and experience shall be

indicated.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(\) A person who is approached as a prospe<:tive arbitra tor lmparUo1i'Y Df

shall disclose to those who approach him in con nection with his possible ;ndepeDdeace.

appointment any circumstances likely 10 give rise to justifiable doubts as

to his impartiality or indepe ndence.

(2) An arbitrator, once appointed orehosen, shall disclose to

the panies the circumstances mentioned in the previous subsection

unless the panies have already been infonned by him of thcse

circumstances.

14. (I) Any arbitrator may be challenged if circumstances exist

that give rise to justifiable doubt as to the arbitrator's impartiality or

independence.

(2) A party may challenge the arbit rator appointed by him

only for reasons of which he becomes aware after the appointment has

been made.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(I) Arbitru jista' jig; rikuiat jekk ikun he mm xi haga Ii

tnissel dubbju gustifik abbli dwa r l-im parzjalilA jew I-indipendenza ta'

dak I-arbi tru .

(2) Part; tista' tirrikuia Iii dak I-arbitru Ii hija Ikun hatre t biss

meta jkun hernm raguniji et Ii hija ssir laf bihom wara Ii tkun $Brei il-

hatra.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) A party who intends to challenge an arbitrator , shall

send notice of his challenge within fifteen days after the appointment of

the chal lenged arbitrator has been notified to that party or within fifteen

days after the circumstances mentioned in section 23 and 24 became

known to that party.

(2) The challenge shall be notified to the Registrar, to the

other party, to the arbitrator who is challenged and to the other

members of the arbitral tribunaL The notification shall be in wrilingand

shall slate the reasons for the challenge.

(3) When an arbitrator has bee n challenged by one party Ihe

othe r party may agree 10 Ihe challenge. The arbitrator may also, after

the challenge, withdraw from his office. In neit her case does this imply

acceptance of the validity of the grounds for the challenge. In both cases

the procedure provided in sections 20 and 21 shall be used in full for the

. appointment of the substitute arbinator even if during the process of

appointing the challenged arbitrator a party had failed to exe rcise his

right to appoint or to participate in the appointment .

Ui. (I) If the other party does nOI agree 10 the challenge and the

challenged arbi trator does not withdraw. the decision on the challenge

will be made by the Cbainnan, and his decision shall be final and

binding.

(2) When the Chalnnan sustains the challenge, he shall

appoint a substitute arbitrator.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1)

In the event of the death or resignation of an arbitrator

during the course o f the arbitral proceedings a substitute arbitrator shall

be appointed or chosen pursuant to the procedure provided for in

sections 2Q to 23 which was applicable to the appointment or choice of

the arbitrator being replaced.

(2) In the event that an arbitrator fails to act or in the event 01

the de jure or de [acto impossibility of his performing his functions, the

procedure in respect of lhe challenge and replacement of an arbitrator

as provided in the preceding sections shall apply,

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) SUbject 10 an agreement by the parties, the arbitral

tribunal shall, promptly after illi appointment, determine the language

or languages to be used in the proceedings; unless the panics agree

otherwise, the language chosen shall be Maltese. This determination

shall apply to the statement of claim, the statement of defence, and any

further written statements and, if oral hearings take place, to the

language or languages to be used in such hearings.

(2) The arbitral tribunal may order that any documents

annexed to the statement of claim or statement of defence, and any

supplementary documents or exhibits submitted in the course of the

proceedings, shall be delivered in their originaiiaoguage or languages

agreed on by the parties or determined by the arbitral tribunal.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) Unless the statement of claim was contained in the

notice of arbitration, within a period of time to be determined by the

arbitral tribunal, the claimant shall communicate his statement of claim

in writing to the responden t and to each of the arbitrators. Acopy of the

contract, and of the arbitration agreement if not contained in the

contract, shall be annexcd thereto.

(2) The statement of claim shall indude the following

particulars

(a)

the names and addresses of the parties;

(b) a statement of the facts supporting the claim;

(c) the poi nts at issue; and

(d)

the relief or remedy sought.

(3) The claimant may annex to this statement of claim all

documents he deems relevant or may add a reference to the documents

or other evidence he will submit.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) The respondent shall communicate his statement of

defence in writing to the claimant and to each of the arbitrators within a

period of time to be determined by the arbitral tri bunal.

(2) The statement of defence shall contain a reply to the

particul~ (b). (c) and (d) of the statement of claim referred to in

subsection (2) of section 29. The respondent may anne)!: to his statement

the documents on which he relies for his defence or may add a reference

to the documents or other evidence he will submit.

(3) In his statement of defence, or at II l~ler stage in the

arbitral proceedings, if the arbitral tribunal decides that the delay was

justified u",10;:. (he Lircurnnances, the respondent may make a counter-

claim arising out of the same contract or rely on a claim arising out ohhe

same contract for the purpose of a set-off.

(4) The provisions of subsection (2) of section 29 shall apply

to a oounter-claim and a claim relied on for the purpose of a set-off.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

During the course oflhe arbitral proceedings either party may "'mendme"1S

amend or supplement his claim or defence unless the arbitral tribunal to thc <I'im

considers it inappropriate to allow such amendment having regard to or <lo f .nce.

the delay in making it or prejudice to the other party or any other

justifiable circumstances, However, a claim may nOI be amended in

~nch II manner that the amended claim folls outside Ihe .scope of the

clause or of the separate arbitration agreement.

~ .... tothc

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(\) The arbitral tribunal shall have the power to role on lurIOdictK>n

objections that it has no jurisdiction, including any objcctions with .. bi . ... 1 tribunll.

respect to the existence or validity of the arbitration elause or of the

separate arbitration agreement.

(2) The arbitral tribunal shall have the power to determine

the existence or the validity of the contract of which an arbit ration

clause forms part. For th e purposes of section 32, an arbitration clause

which forms part of a contract and which provicll!." fnr arbitntion under

this Part shall be treated as an agreement independent of the other

terms of the contract. A decision by the arbitral tribunal that the

contract is nul1 and void shall not entail ipso jure the invalidity of th e

arbitration clause.

(3) A plea that the arbitral tribunal does not have

jurisdiction shall be raised not later than in th e statement of defence or.

with respect to a counter-claim, in the reply to the counter-claim.

(4) In general. the arbitral tribunal should rule on a plea

concerning its jurisdiction as a preliminary question

PrOVIded that the arbitral tribunal may proceed with the

arbitration and rule on such a plea in its final award.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

The arbitral tribunal shall decide what further written Furtherwritt.n

statements, in addit ion to the statement of claim and the statement of >tltemenOS.

defence, shall be required from the paniesor may be presented by them

and shal1 fix the periods of time for communicating such statements.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( I) TIle pericds o f tim e filed by the arbitral tribunal for the

communication of \\Titten statements (i ncluding the statement of cla im

and statemen t of de fence) should nO[ exceed forty-five da~

Provided that the arliitrallrihu".t m~y extend the time-limi ts

if;, ("Aln<jriers that an exlensio" i~ ju~tified ,

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

{I} E ach party shall have the burde n (,If proving facl~ relied

Ducd .. ofproof

on to support hi, claim or deftn~.

(2) The arbitrallri\)unal may, if it considers it appropriate,

lequi re a party to deliver to Ihe triounal and to the other party, within

such a period of time as t he arbitral lribunal may decide, a ~ummary of

the documcnls and OIher evidence which that paJ1 y imends 10 present in

supportofthe facts in issue setout in his statement of cI.im orsu.tement

of defence.

(3) At any lime during th.., a rbitral procccdinp the arbitrAl

tribuno.l may require th e panics to produce documents, e)[hibit~ 01

<Jther evidence within SUdl a pcritxl or tilTlt as the arbitraltribllnal shall

<.lct~nnine ,

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I ) Subject to the provisions of section 37, the evidence of

witnellSC!I in an a.bitrati<Jn shall be produced either viva yoce or by

affidavit, alld suujectlO II"" Jeh;vantosu:tiuns or th i~ Part, the rulCli ofthe

Code of Organization and Civil Procedure and of any law from time to

time in force in Malta shall apply to the production of eVIdence I'iva J.'I:1a

or by affidavit before the arbitral tribunal as th ey apply to the

production of evidence before a coun of civil jurisdiction.

(2) The Centre may make rules !!ttting down the terms

within which the evidence is to be produced and the manner of its

production, and the parti~s may. notwithstanding the foregoi ng and the

provisions of subsection (1 ) 01 this ~tion, agn:e that th e evidence of

witne..ses i~ to be produced within sud! timc~ au '" in ~udllllanntr as may

Ut: detennined by lhe panic,

Provided th at such agreement may not be incompatible with

any rule made by the Cent re and declared by it to be inderogable,

(3) SlIhject to the provision ~ of mhseetion (1) of ~inn :n ,

,,·here rhe evidence of any person i. requi.ed, the Regi!>trar may iSl;ue

"rits of subpoena 10 compel the allendance o f a witness to give evidence

Or proouce documcnlS before ~n II rb itrai lribunlll. The IIpplication for

the issue of the .... rit shall be cO\1ntc~igned by th e 501c arbitrator , orlhe

I'rt;~iuing arbitrator , anu ~hall be filed in the registry of the Civil OJu n

First Hall by the Registrar ,

(4) The provisions of sub;ection (3) of this ;eelion shall apply

mutatis mutandis where for the pllfposeS of proceedinis before an

arbilral tribunal, a rogatory commission or letters of r~quest are

r~ll"ired to be iss\le d in rC!lpect of, or an affidavit is requirtd by, a

penon who is not resident within the jurisdiction o fthe couns o f Malta.

•

(S) Upon [h~ filin@ofanappliclltionlowbichsubsed:ions(3)

and (4) appl), t11 e Rl:g~l f iir uf lilt: Coull. ' ]'lll ul)tify the ",rit ul

otherwise act on tbe applicatIon In the same manner as 11 such

application or such writ had been issued or approved by the Civil Court

Fin.1 Hall.

Where anypc:rron who has been regula rly subpoenaed k'I

(6)

appe.lIT before an arblln.1 tribunal in a<xurdanc:ewilh Ihisscction bi ls 10

oppeo.r before the said tribunlll .... ilhout R:asonable c;uwe, tbe u il>u II;a1

fllay I1ake II report tbereoll. 10 the Registrar ",ho shall by appHcation

brin~ the repon to the anemion of the Civil Court Firlit Hall requesting

illO ~al with ,h,. matter in the same manner uifthe perscn concerned

had failed to nppellr before tbol Court when rc::sularly subpoenaed and

tItCl'cuJ.lU" tho:; Cuun shall deal wilh the maner in the 5aid manner.

:rI. (I) Tn the event nf'lIl 0"'] besri ng of the parties or of Ot1oI~ .. ri"J.

wi tnesses, the arbitral tribunal shall give tbe parties adequate advance

notice: ill th e date, time and plaa:: therM.

(Zl If tbe witnesses are to be heard. each party snail

<:(Immllnicate 10 the arbitral tribunal and to the other pany, al In"

fifteen days before the heating, the namC$ and addre..,.;;s of the

willl~t:li he imends 10 present, th e subject upon which and the

JanguaJ,:es in wllich such witne>ses will a:ive their testimony.

(3)

The arbitral tribunal shall mllkc arnngcme nts for the

tlalllliltion uf un,1 ~UlteJIH:ms made at I hearing and for a le(Ord Oflhe

hearing if enbcr 1$ deemed necessary by the ubilJai tribunal in the

circumstancc:.'Iof the m~, or ;fThe ~ieshave 8gr«d theulO and have

communicated &ueh agreement to the llIbitral tribun~ 1 at leMt fifteen

days b;fore the heering.

(4) HCaJinp shall be heM in Ns"'I'rn \1nless the partie~ agree

The arbitral tribunal may require the retirement ill any

otherwi~e.

witne~ or Witnc5$e$ doling the tc.ti",o"y or utlICr wimesses. The

arbit ral tribunal is free 10 determine Ihe manner til which witnesses are

eIamined.

(S) TIte iubiuel ll il>wull wl<li1 u;tennme the artmissi bilit) .

relevance, matenalit)' and ..... eight 01 Ihe evtdence offered.

311. (I) Unless.otherwise atreecl ily .he pl'lrt i~5, lny party may In·.m. ... A"n •

request the Court !o inue any of the pTCtuu!ionary acts listed in • I'd lUCIutio •• r,

subseaion (I) of section 8JO of the G:xJc vr Orilituiunion and Civil ~.

pJl)u:!.lure subject to th e provilion5 of the lollowtnp; Subsedion~ of this Cop. 11

section,

(2) Where in accardU:lCC with wD5taion ( I) urthis section a

precautionary act has b:t:lI is!>ued, such Dct shall remlln in force unt,1

such lime as it shall expire or be revoked in acoordaror:e w;,h the

provisions of the CodeolOr&l'Inization and Civil Proc:edure or ull!i ] such

tim e 3§ the arbitral tribunal by nn award giV!n for that purpose shall

order the party issuing the txc~auliollary act 10 withdraw the same and

;S!>ue the relative COUnter.warrant

(3) Notwithstanding anything oolltained ill tl,,; Code of

Or!t'llliUlioJl and Civil Procedure the ti me estab1i~ed therein within

which the actio n i. to be in~liluled in respect of the right stated in the

precautionary act issued shall be of fifteen daYI f.om the filin~ of the

iud icial a~t whcrcb}' the OOU'I i~ reque~l(:d t () iSllUC: the: PJ~utio~ary

act. The plmlisioR5 of the said Code fot the cxtcn5ion of the ~id time

"$11 .. 11 abo apply.

(4) Aaion as is referred to in sulmcti<m (3 ) of Ihi s !.ecti()n

$halJ be d eemed t o have bc\: n ta ke n whe n the II.rbilation procccd in~ a rC

commenced. For the purpose oftllis suhKction arbi tration pnxx:cding:;

$hall Ix deemed to have oornmcn~,d on th e date n:fcrr,d 10 in

iubscci:ion (2) of section 1 i.

(5 ) The party at WhOK request II. prccoutio nary Del bl.!; been

issued in acoordanc.: with lhi! ~CCl ion shall , wi thin the time specified in

~ubscction (3) of thi~ M:Ction, file II note in the records of the

pT<xccdings for the i$sue of the suid premutionary lIeI together with II

certifiC:lle by th e Regislrar showing Ib lll he hM oommence d arbitration

pr<xccdings in acco rdance with subsection (4) of this section,

(6) Un les~ othe.,."i", agreed by the partiel, the arbitral

tribunal may, al the requcst of II party, orde r any party 10 take sucll

interim meuure5 of prOlecti on iI5 the lribunal may consider lIeocSSllry in

r,,,P<'ct oi the l ubj,ct ma tter in dispute. Th e arbitral Iribun ol may

req uire any party to provide adequate Kcurity in oonnect ion witliluch

'11elllure5.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(I) Fil-kat ta' seduta rejn jinstemghu I-partijiel jew xi

xhieda , it-tribunal ta' I-a rbi tragg ghand u jaghti lilI-pa rtijiet avvit bil-

quddiem sew dwar id-dala. il·hin u I-post rejn din Ikun ser issir.

,

(2) Jekk ikollhom jinstemghu .-xhieda . mill-a nq as I'ImislaJ

il-j um qabe l is·sedu ta kull parti ghandha Igharra! lit· tri bunal u lill.pani

l-ohra bl.ismi;iet u I-indirizzi lax-xhiedp Ii tkun bi hsiebha W b, dwar is-

suggelt Ii dwaru . u b'lie ma ilsna . dawk i.-.hieda jku nu seT jixhdu.

(3) It-tribunal ta ' l· arbitraU gl'landu jag hm el a rrangamenti

sabitll issir it-traduzz;oni ta ' kuH dikj8J"llZ.Zjo ni ve rbali Ii ssir matul

sedUtB u gli al registrazzjoni tas-seduta je kk dawn jilqiesu me htiega mit-

tribunal fit-ti rkostanza tal -kat. jew jekk il-panijiel ikunu qablu ma ' dan

u jkunu gharrfu lit-tribunal la' I-arbi tragg b'dak il-fte him mill -anqas

hmistu-il jum qa bel is-smiegh .

(4) Kull sedula ssir ill camera ke rnrn -il da rba I-partijiet rna

jiftehmux mod iehor. It-tribunal ta' l-arbitraU jista' jehtieg Ii xi xhud

jew xhieda jooorgu barra mill -kamra waq t is-smiegh ta' xhieda o hra. It-

tribunal ta' I-arbit ragg huwa hi eles Ii jistabbilixxi I-mod Ii bih ghand ho m

jigu etamin ati x-xhieda.

(5) It-tribun al ta' l-arbitragg ghandu jista bbilixx j J.

ammissibiltA, ir-rilevanUl, i$-sustanu u I·va lur ta ' kull proya migjuba.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

( I) Ke mm-il darba l-parlijicl rna ji rle hmux mod ie ho r . kull Mit",;

pani tista' li llob lill-Oorti biex tohrog xi att kawtclatorju minn dawk Pal m;'"

elenkati fis-subartikolu (\) la' l-artikolu 830 lal-Kodio ta' all;

Organizzazzjoni u Proi:edura Civili bla bsara ghad-dispotizzjonijiellas- bw!.:Lalofj.

5ubartikoli Ii gejji n ta' dan I-a rtikolu .

(2) Mela skond is-subartikolu (I) la' dan I-artikolu jkun

inhareg alt kawtelatorju . dak I-an ghandu jibqa' jselih sa dak it-tmien

meta jiskadi jew ji~i revokat skond id-dispotizzjonijict ta]· Kodit i la'

Organizzazzjoni u Procedura Civili jew sa dak ii-tmien meta I-tribunal

la' l. arbitraU b'det iijoni moglltija glial dak il-glIa" jordna Jill -parti Ii

Ikun qeghda lohrog I-all kawtelatorju Ii lirtira dak I-aU u lohrog il-

konlromandal relaCliv.

(3) Minkeua kull haga Ii jisla' jkun hemm fiI-Koditi la'

Organizzazzjoni u PT~ ura Civili z-tmien Siabbilil fiI -Kodi¢i Ii fih 1-

azzjoni dwar id-drin imsemmi n-al! kawlelalorj u ghandha linjieb ikun

la' hmis'ax-il jum minn meta jigi pre;!:enlal l-att gudizzjarju Ii fih iI-q orti

linlalab Ii lohrog I-all ka wlelalorju. Ghandhom japplikaw ukoll id-

dispotizzjonijiella' dak il-Kodici dwar it-ligdid ta' dak iz-zmien.

(4) Oik I-aujoni Ii tissemma fis-su bartikol u (3) la· da n 1-

artikolu gha ndha lilqies Ii Iku n illief'lde l fiI -kat Ii jinlKlew iI-

proCedimenli la' I-arbilragg. Ghall-g1Ianijiet ta' dan is-subartikolu 1-

proCedimenti la' I-arbilragg jitqiesu Ii jku nu nbdew fid-dala msemmija

fis-subartikol u (2) ta' I-artikolu 17.

(5) ll-persuna Ii jkun inhareg I-all kawlelalorju fuq tulba

laghha skond dan I-artikolu ghandha , fit-tmien imsemmi fis-

subartikolu (3) ta' dan I-art ikol u, lippretenla nOla n-aui lal-

proCedimenli ghall-hru!! la' dak I-all kawlelalorju nirnkien rna '

¢Crtifikat mir-RejiSITal ur Ii ikun juri Ii ikun Deda proeedimenli la'

arbi lragg skond is-subartikolu (4) la' dan I-art ikolu.

(6) Kemm-il da rba I-partiiiel rn a ii(lehmux mod iehor, il-

tri bunal ta· I-arbilragg jista' , fuq taiba la' xi part i, jordna Iii xi pani biex

liehu dawk il-mituri protettivi ghal :tmien l;mitat Ii t-tri bunal jista'

jidhirlu mehtiega dwar il-kwistjoni Ii tkun is-s uggell tal-tilwima . It-

lri bunal la' I-arbitra" jista' iehtieg IiI xi parti biex lipprovdi ga ram:ija

xierqa fdak Ii jkollu x'jaqsam ma' dawk iI-mituri .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) Tho: arbinal lribunal may appoint one or more expertS to

n'jlUr l tv iI, in writilt ~, un spoecifIC issues to be i:letermined b~' the

tribunal. A ropy of lit" cxpo;:rl'~ l ~ rU1S uf lefo:rcIJCe. e:5lablisheu by the

arbitrall ribunal, sll~1l ~ u:II11J1lullicalc<l lu the parties.

(2) TIt" va. I;" •• hall ,ivt th e " ~pCl t allY rel"v~m information

oc produce for his jn~pectjou au)' u:1<: . ~ nl <Iu<;um t Tt ls VI ~uods Ih~1 he

rna)" require of them. Auy di~te between a pan y aud su~h expc:llll:i Iv

the tcle v~lIce of Ih" rtquired illfor "' ~ liVII or proou~ tivTt snail be

rd elTed to the atbitral Iribullal [01 dexi.iOlJ,

(3) Upon recapt vi lIt" "X~It'~ repoll, th" ~rl>itnl lrjbunal

shall oonllnunic~IC a OOVl' of III" It p Olt to til" pilrt ics who >l t~1I1te ~iv"l1

the opportunity to cxpr~, in .... riting, their opin ion 00 the tepol \. A

party $hall be entitled !O examine any doc\lm~nt on whi~h the expert has

relied in his re port.

(4 ) At tllerequenol eilher party the expert. aft er ddiverY of

the report . may b.; II card at a heari ng where the parties shall have 'the

opportuni ty 10 be present and to inte rrogate the expert. At thi~ hea ling

eithe r party may preiICnl expert wilIlC5S<:S in order to testify on the

points at i-"uc, The provisions of ~ecljoo J6 shall be applicable 10 such

pr<:>«edings.

40 , (I) II wi lhin tilt period of time fixetl by lhe amilra 1,rihun,,1

lite da;maul hiS [~iku 10 wlllmuni~~ le his claim without showing

sufficient ~ 1J:;t: rvr such faLlule, Ihe arbit ralt ribuTt al shall Issue an order

[0 1 th" lerlllill~tivlL uf Iht ubitrd l proceetlings. If. wit hin Ihe perioo nf

li me fixed by the arbitral Ilibumd, the ~spon(k nt has faik d to

cummun ic,lIt his stat emen t 01 defence without showin a sufficient Clll'iI'!

fo r such failu re . I h ~ nhi tral tribunal shall o rd er that Ihe proceedings

continue.

(2) If one of [he parties. duly notified under lhis Pan , hu to

. ppur at II. hU ring, fai!, to do so without Mlowin g sufficient ca use (01

such f.iIUlC , t he url:oil .. d uitJunal may p roceed wi th the a l bitrattOn.

(3) If one of the pa rtiesduly invited to proouocdocu mcnla ry

evidence , foi ls 10 d<I!O wil hin Ille u tablish,,'" po:riocJ of ti me, withO;!1

~1M)wingsutflde ntcause for such f ailu re, Ihe arbitral tribunal may make

the award on th e evidence hemIc it .

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(1) Jekk fit-tmien stabbilit mit-tribunal ta' I-arbitragg ir-

ri korrent ikun naqas mill i jgharra f it-taiba tieghu mingtiajr rna jkun ta

raguni valida bittejjed ghaliex ikun ghamel dan, it-tribunal ta ' 1-

arbilragg gllandu johrog ordni sabiex jitwaqqfu I-protc:dimenti la' 1-

arbitragg. Jekk , fit-tmi cn sta bbilit mit-tribunal ta ' I-arbitragg, I-intimat

ikun naqas milli jgharraf id-dikjarazzjoni tieghu minghajr rna jkun ta

raguni valida bittejjed ghaliex ikun gllamel dan, it-tribunal ta' 1-

arbitragg ghandu jordna Ii I-procedimenti ghandhom jitkomplew.

(2) Jekk xi wahda rnill-panijiet , debitarnent notifikalaskond

din it-Taqsima, Ii jkoll ha tidher waqt sedut a tonqos milli tidher ghaliha

minghajr rna taght i raguni valida biiiejjed ghal dak in-n uqq as, it-

tribunal ta' I-a~bitragg jista' jimxi 'I quddiem bl-arbitragg.

(3) Jekk wahda rnill-panijiet . debitament mistiedna bicx

iggib prova dokumentarja, tonqos mini taghmel dan fit-tm ien IiIha

stabbilit , minghajr rna taghti raguni valida bii:i:ejjed ghal dak in-nuqqas,

it-tribunal ta ' I-arbitragg jista' jghaddi biell: jaghti d-detitjoni tieghu fuq

iI-provi Ii jkunu ngiebu quddiemu.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I ) The Irbilr. ltribunal fII.Y ( oqui n:o[ II,,: vartic:s il tlley 0-..

have any f un her PfOOftO offe r o r witnems to produceo! submissions to <II IInnnp.

make and, if there are none, il sh all decl .. ,c , he hearing!' dosed .

(2) n", arbiual tribunal may , if it conSiders it necessary

owing 10 cl cepllonaL ci n:umslanccs, d eclCle, on it~o ... n motion or upon

appLication of a pan )" to reo pen the he3li ng; at any tim~ befo re tbe

award is m~ d~ ,

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

A pa n y who Imnw~ thai any provisio n of, or require ment WoI><. ol", • •

under , this Pull hIlS 001 bee n romplied ... il h amI )OCI prucet:ds .... ith lhe

al hiu ation .,0110001 prompt l), staling his objection 10 su~h non-

compliallCl: , shall be deemed to have waived ils righ l lO object.

( I)

When there arc IhTee arbitno.IOn. a ny IIWill U o r otlier DociIionI..

O.

d eciS;OIl of the ~ rbi{fal tribunal shall be made b)' a maiori ly o f Ihe

arblua tors .

In ,Ihe ClI5C of "I u~tiuflS of proredure, .... hen then: IS no

(2)

majo rit), Of when the arbitral tribunal so authori~~. Ihe pr«idin,;

a rbitrator may rlecide o n hi~ o .... n. lubi"' 10 revision, if any, by the

a rbitral tribua al.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(I) Mela jkun hemm tliet arbitri, kull decitjoni ta' 1-

arbitragg jew decitjoni ohra tat-tribunal ta' I-arbitragg ghand ha

tittiehed minn maggoranza ta' l-arbitri.

(2)

Fkai: til. ' kwestjonijiet procedural;. meta JIl11. jkun hcmm

ebda maggoranlil. jew meta Hribunal ta' 1.arbitragg hekk jawtorizz.a, ]-

arbitru Ii jkun qieghed jippresjedi jisla' jiddetiedi WlI.hdu, kif suggell

glial kull revitjoni, jeklc ikun hemm, mit-tribunal til.' l-arbitrll.gg.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I ) In addition to mak:inia final award , Ihe arbitr al nibunal Formoftht • ....d .

in ......

shall heen ril led to ma ke irMmm , in ter locutory, or partial a .... ards .

imerb:->..".,.

Of !>l"i. I ........

(2) The award shall be in wriline and shall be marie 111 Ih e

place o f the arlJitral ion II shall be final and bindin, on th e pa rtic!. Th e

pll1iu , hall carry ou t the award ..-ilhout dcl ~y ,

(31 The arbilral l rib\l~ a l sh ~ lI STIl le I ~ re.asons u?On which

Ihe award is baled, u~l es~ thep3rties have agreed Ih al no reaso.lII~ a rc 10

~ given .

(4) An award shan be: sigDcd bl' !toe arbi tntonl and it ~hall

conta in the dille on whi ch a nd Ibe pla.;c wlu:: rc the award ""as deem ed 10

have been mad e. Where (h ere a re lhree arbilrators and one n fl~ cm f:lils

to sill:~. the awa rd shall slate r he rea!'On fo r Ihe absence of Ihe Slgnllt ~ re.

(5) The awud lIlay be made public noly with the oonsem o f

"'JI"

panie~.

(I'i) Copies of the award si,ned by the arbitraton ~ha ll be

commu "icuted to th e parties by th e arbitral tri bunal.

(7) lbc ami n al tribunal ~"all , 1101 bIer tban ninety da:os

from Ihe dMe rderred 10 in subsection (4) of this section, presen t the

award to t he Registrar for registration by the r.t.ntre and shall comply

"illl tile I'devant pro\'i.!oions of this Act lind th e requi rereent~ of

registration Issued by the Ge mr.:.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) TIle orbitra l tribunal ' hall apply, , ,,bjed. to the

p rovision s of this Act , the law dcsignatcu by til.: pal t ies a~ applicable 10

the substance of the dispute. Failing suchdesignalion by the panies, the

or

arbitral tribunal shall apply MahcWl law including the rult:$

Maltese

IlIw ,dative to the conflict of la"'5.

(2) The; arbitral tri bunal sh511 decide lum; .. b/ccornposircur

or ex aequo et bono only if th~ panies have exp reSSly 3U1horised the

lIrhilral trillu nal to do!lO.

(3) In all e:\Su, the arbitral tribunal .h311 docirle in

llcamlam:c wilh the ttnll~ofthe:eon\rael and sball , if rdevant , uke ;n lo

account the usages oflhc trade apphcable 10 the u ansacrion .

(4) Unla~ o lherwis.e allrted to by the parties or other9fise

provided for in or under tlli, Act , tile arbitral tri bunal mayenmlllcl the

arhimlliun in sud! UllUlJler it eomidel1l appropriate:. Tht power

oonfen ed upon tlie arbitral tribunal includes thc power lodctcTa, inc the

admi55ibility , relevance, mllleriality and we iih t of auy erideuce.

#i. (I) I.f before the :lIU:lr<i i~ made , the panies airee on a

of the disp"tc , t he nrbitrnl tribun al ~hall e ilher issue an order

5Culcmenl

for the terminat ion of the arbim!.l p ruo;;a;dings or, if reqllcSicd by both

parties and accepted by the arlJitra! tnbunal, rero rd the sett leme nt in

tn.e fonn of an arbitr~1 award on agreed term ~. The arbit ral tribllnal is

no t ob~_ged to give reasons for such lin IIWlrd .

(2) If before the award i~ mad e, the continuation o f the

arbitral proceeditlSS beoome~ umlCcess~r)' (W" im~sible for any reason

uot Ulcntioned in subKe~ion (I), the IIImtnl tribunal shall inform tile

panics of ib intention to issue an order fo r lhe le rn,ination of the

pT<x :eeclin£.,. The arbitra l tribunal shall have the power to l$.!ue such an

order unlcS/; a party raisel justifiable ,rounds For ohjection.

Copies of the order for termination of tbe IIrLJilral

( 3)

proceedin~ mof theaward on aerced tenni, si,ned by the arbitrators.

~h;l.1I bc rommuniC.J.lcd by th e arbit ra l lribunal to the parties and to Itw!

RegiStrar. Whe re lln ~rl>ilul award on agreed tcrm~ i:s made , th e

provisionsol SUbsectlOllS (2) and (4) to (7) of se~lion 44 shaU apply .

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(I) Jel k qabc:\ rna linghata d -dcl:i:l:joni, il-partijiet jaqblu

dwar lransazzjoni lat-lilwima, iI-tri bunal ta' I-arbitragg ghandu jew

johrogordni ghat-lemma tal-pro¢edimenti tl ' ]-a rbitragg jew,jekk hekk

mitlub mi t-te wg partijiet u dan jigi atten a! mit -tribun alta' I-a rbilragg,

jirregistra t-transazzjoni f1-gf\amla la' deCiijon i arbi trali sko nd ii-patti

miftchma. IHribunal la' l-arbilraU mhuwiex obbligat Ii jagl'lti

ragunijiel ghal deazjoni bbal dik .

(2) Jekk qabel rn a tingl'l8ta d-deazjoni, iHkomplija lal-

proeedimenli arbilrali rn a libqax aklar mebtiega jew issir impossibbli

gI'Ial xi raguni Ii mhux imsemmija fis-subanik olu ( I), it-tribunal la' 1-

arbi tragg gI'Iandu jgl'larraf liII-panijiel dwar il-llsieb tiegl'lu Ii jobrog

ordni ghal-Iemma lal-pro¢edimenli. It-t ribu nal la' l-arbilraU ikollu s-

selgha Ii johrog dak l-ordni kemm-il darba xi pani rn a ggibx ragunijiet

gustifikabbli la' oUezzjoni gl'lal dan.

(3) Kopji la' l-ordni gbat-temma tal-proecdirnenli ta '

arbitragg jew lad-de¢jtjoni arbitrali fuq patti miflehma, bil-finna la' 1-

arbitri, ghandhom jitwasslu mit-tribunal ta ' J-arbitraU lill-partijiet u lir-

RcgiSlratur. Meta lingbala dcazjoni arbitrali fuq iI-paui miftehma ,

ghandhom jappli kaw id-dispoziujonijiellas-subarlikoli (2) u (4) sa (7)

la' I-anikolu 44.

41_ (I) Fi t mien bmislu-il jum wara Ii taslilhom id-detitjoni,

kull pani, wara Ii tagl'l ti avviz ta ' dan lill-pani l-ohra , lista' titlob lit-

lribunal ta' l-a rbi traU Ii jaghti tifsir tad-deCizjoni.

(2) It-tifsira gbandha tingba ta bil-miktub fi bnien hamsa w

erbghin jum wara Ii tasal il-lalba. It-tifsira moghlija gbandha lagl'lmel

schem mid-detizjoni u gI'Iandhom iku nu japplika w id-dispotizzjonijiet

tas-subartikoli (2) sa (7) la' I-arti kol u 44.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I ) Within fifteen days from the rece ipt ofihe award, eilher In«"".,al",o

party, with notice to the other party, may request that the arbitral ,,!tIK .w,,;.

tribun al gh'c an interpretation of the award.

Thc interpretati on shall be ,iven in writing withi n forty-

(2)

(h'e U<lYs a lter the reu:ipl vf tht n:yut~L 111t interpretation ~hall furm

part 0 1 the awald, and tile provisio ns of subsections (2) to (7) of section

44 shall appl y.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( I) Within fi fteen da~ from the receipt ofl he nward, either Comet;,,.,

oflh.e . ",.TJ,

party, with notice lo the other party ,may reque~t the arbitJaluibunal to

correct in the award any errors in computation, any clerical or

typographical errors, or any errors of similar nature. The arbitral

Irmllna l may w ilhin thirty <lars after th e co mmunica t ion of 1he "wHd ,

mak e ~uch corrections on its own initiative.

(2) Such correctiollsshall be in wri ling, an d Ihe provisions of

subsections (2 ) to (7) of section 44 shall apply.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( 1) Within fifteen da ys after th e receipt ofth~ award, either AMH • ., .. ' ... · .....

pliny, with notice lothe other party, mil)' reque,t the arbi tral tribunal 10

nuke all addition al a"'IIId a~ to .;llI.il11' I'fescute<l ill Ille ," uilnl

proceed ings but OOlltled from th e award.

(2) If the arbitral tribunal considers the req uegt for an

additional av;ard to be justirled and com;iders that Ihe omission can be

rectified without any furthe r htarin~ o r tv idenee, it ~hal1 complete ;15

award within forty-five days from the rece ipt of the request.

(1) When an arlditional award i~ made Ihe Jlrnvi~ion. nf

subsections (2) to (7) of wction 44 shall apply.

The arbitral lTibunal shall fix tbe COSts of arbitration in its Cu.",

S<I.

award , The term ~costs" im;:iudes onl)'

(3 ) the fees of the arbitral tribun al to be . uted .eparately as

toeacb arbitmtorund to befixed by the trihunnlit:;.clfin aeoordanoc

wilh seo.:li un 51;

(b)

the lnvel and othere.lpense, incurred by the arbitraton;

(e) the coots of expert advice and of othe ra$ i. tnnoo required

by the arbitral tribunal;

(d) the travel and ol her expenses of wiln e;ses 10 the exte nt

such e lpenses are approved lly the arllitral trih,,~al ;

(~)

the costs for lcg~l representation a~d a~istancc of the

succes,ful party if such COSIS were clai med during tb e arbitral

proceedings, and only 10 the extent thaI the ar bitral tribunal

determin es that the amoun t of >u~ h costs is reasonable; and

(f)

nny fees nnd expenses pnynble to the Centre.

SI. (11 The fees of the arbi tral tri bunal sball be Te.l.<onahl ....

II kiDS into aocoun ll he amou nt in dUpuIt., theeomplexily of Ihe fub;ect·

malte r. Ihe lIme .peru hy Ihe arhi lra10rs and ~ny other relevant

ci rcumstances of the '''~,

(2) The arbi lr~1 tribunal In fixiol its fees shall talre into

acroun l1h ... schedu le of feef for arbitration issued by Ihc Centre to thc

cItent th at it w nsiUcfS app ropriale in Ihe ci rcum !tan ce~ of the Clue.

iI:~

(3 ) The arbitral tribunal sball fi(

fees only after

ool>5l1l1al)ol wi th tbe Cent re which m ll.y m ake any 00"'1111'111 it deem li

appropriate to the arbitnl lrih"olli concemins the fee"

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) Except ali pro\ided in ~ubsecli o n (2) thereof, the oosl$of

4Tb itrat ioll sh~1l in principle be borDe by Hie unmcce .. .dul pany

How ....... ·r, the arbitral tri bunal mil)' opportion such cmb be'weeu lill'

panics if It determines \hal appJrUonment i~ TelI!.OIlable, lat ing into

atcount the particuilu circum.ta.nee& of tbe: ~!oC.

(2) With ~$I?"d of the: UDts u ! k,a l representa tion aDd

assi,ta nce referred 10 In paragraph (e) of sedioll SO, the: .rbitral

Inbunal, tali", illtu ~wounl the panirular circumstances of the case.

~h~1I be free to dete rmi ne: wh ich p~rty shall bear 5uch COlit! or 1II1I)

apport;"'" ~ uch OO5ts between the parties if il ileterm ines thaI

appon ion ment i~ l'Casonobie.

W hc lI the IiTbitTill tribunal i~ues an order for the

(3)

t ermi n~lion of the arbilral proceedings or make~ an award on ~greed

t~ 'IlI~. it ~ tlilll in the lexl of Ihal o rder or awa rd . fix the eost~ 01

arbitralion referred 10 in section SO and Kction 51.

(.) No additional fees may be chllfged by aIlaIbilni tl ibun~l

fur inte rpretation or correction or w mpl e!iOll of it s award under

5edions 47 10 49.

SJ. (I ) Tho: lulrimtl tribunal , on ilS establishme nt. may request

e:lrh party to deposit wi th the Cen t re an equal lum bct ... ecn them nan

auviln~c paymeDl for the costs refe rred 10 in P.1 111~"'f'hs (a). (b) , (c) and

(i) of secli on 30 .

(2) During the COllrse olttle arbitul PlQQ;o;:rJi.p: the arbhral

t ribunal may request from the pafl ~ supp,,",me ntary cleposiu 10 cover

fun her 00$1.1.

(3) The arbitral tribun al ~hlltt fil the llmOunt~ of arty dcpositfi

or $upplernen lnry deposits only aflCT coosulla lroll with the Cenue .... meb

may make In the arbitl1ll tribunal any romments ... hieh it deems

appropriate w " "",ru;ng the a mou~ 1 of such depositS and suppl ementary

rlepostu.

(4) If the required ~i ts a re noc. paid In fuJI within Ihirty

d ays from the receipl of the requ~t , the .rbitTal tribllna! ~MII IoO juform

the: pani cs In order thaI an y One 01 them may make the required

pa)'tllen t. If such payment is nOI m~cIe, the arbi tral trib ull~1 wily urder

Ihe srupe nSion or lenni na!ion of rhe unit.al proceedin!!!>.

(5) After the award has been made, the arbitral tribunal shall

render an account to the parties of the deposits received and return to

the parties any unexpended balance.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(1) Meta jitwaqqafit-tribunal ta ' l-arbitraU, dan jisla' jillob

Iii kull parti Ii tiddepozita ghand it-Cenlro somma ndaqs bejniethom

b'avvant la' I. ispejjei imsemmija fil-paragrafi (a), (b), (c) u (f) la' 1-

artikolu 50.

(2) Filwaql Ii jkunu gbaddejjin il-proecdimenti la' 1-

arbitragg, it-tribunal la' I-arbi tragg jisla· jitlob Ii jsir depozilU

supplimentari mill -partij iet biell ikopri xi spejjez ohra.

(3) II-tribu nal la' I-arbitragg gbandu jislabbililllli I-ammo nli

la' kull depoti tu jew depotitu supplimenlari biss wara Ii jkun ikkoll$ulta

¢-Cenlru lijista' jagbmel kull kummen t lit-tribunal ta ' I.arbilragg Ii jisla'

jqis lIieraq dwar I-a mmonl la · dawk kI-depotili u depotiti

supplimentari .

(4) Jekk id-depotiti mel'ltiega rna jithallsull ghal kolloll fi

tmien tletin jum wara Ii tasal it-taiba, iI-tribunal ta' I-arbitragg gflandu

jgharrafb'dan lilI.partijiet sabiell parti wahdajew l-oll ra minnhom Ikun

ti sta· tagh mel il-hlas mel'ltieg. Jckk dak il-fllas rna jsifll , it-Iribunalta' 1-

arbilraggjista' jordna s-sospensjoni jew it-Imicm tal-proeedimenti la' I_

arbitragg.

(5) Wara Ii Ikun inghatat id-dc:Ciijoni, it-tribun al la' I·

arbit ragg ghandu jaghli rendikon t lill-partijiet dwar id-dcpozili Ii jkun

irtieva u jrodd lura lill.partijiet kull bilane mh ux minfuq Ii jisla' jkun

hcmrn .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) Unless the parties agree otherwise, arbitral proceedi.ngs Place of arbitral

conducted under this Part of this Act sball be held at the premises proceedings.

provided by the Centre.

(2) The arbitral tribunal may meet at any place it deems

appropriate for the inspection of goods, other property or documents.

The parties shall be given sufficient notice to enable them to be present

at such inspection.

PART V

International Commercial Arbitration

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) Subject to tbis Part, the Model Law shall form part of the Model Law.

Laws of Malta and shall be enforceable as sucb.

(2)

In the Model Law;

"State" means Malta and any foreign country;

"this state" means Malta.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) For the purposes of interpreting the Model Law, Interpretation.

reference may be made

(a) to the works of the United Nations Commission on

International Trade Law; and

(b)

to the preparatory documents of the Model Law.

(2) Subsection (1) does not affect the application of the

Interpretation Act for tbe purposes of interpreting tbis Act.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

The functions referred to in Article 6 of the Model Law sball Article 6

be performed by

(a) the Chairman in respect to Articles 11(3), 11(4), 13(3)

and 14; and

(b) the Court of Appeal in respect to Articles 16(3), 34(2)

and 35(1) .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

W~th reference to Articles 34(2)(b) (ii) and 36(1 )(b) (ii) of the Articles 34 a nd 36

Model Law, for the purposes of the said Articles it is bereby declared oflbeModel Law.

that an award is in conflict with the public policy of Malta if

(a) the award was induced or affected by fraud or

•

corruptIOn;

or

(b) a breach of the rules of natural justice occurred in

connection with the making of the award.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

Where, but for the application of this section, both Chapter

VIII of the Model Law and Part VII of this Act on the Recognition and

Enforcement of Foreign Awards apply in relation to an award, Chapter

VI11 of the Model Law shall be considered not to apply in relation to the

said award.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) If the parties to an arbitration agreement falling under

this Part of this Act have (whether in the agreement or in any other

document in writing) agreed that any dispute that has arisen or may

arise between them is to be settled otherwise than in accordance with

the Model Law, then the provisions governing domestic arbitration

shall apply.

(2) In the case envisaged in the preceding subsection, the

parties are obliged , prior to the appointment of the arbitral tribunal, to

inform in writing the Registrar of the manner in which the dispute is to

be settled.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) Before an award granted under the Model Law can be

recognised and enforced by the Courts in Malta, it has to be registered

by the Centre notwithstanding any provision of chapter VI1l of the

Model Law.

(2) With reference to subsection (1) hereof, any party may

present the award to the Registrar for registration by the Centre, and

shall comply with the relevant provisions of this Act and the

requirements of registration according to rules made by the Centre.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

Subject to the provisions of section 61, Chapter VI1I of the

Model Law applies to orders by an arbitral tribunal made under Article

17 of the Model Law requiring a party

(a)

to take an interim measure of protection; or

(b)

to provide security in connection with such a measure;

as if any reference in that Chapter to an arbitral award or an award were

a reference to such an order.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) Unless the parties to an arbitration agreement falling

under this Part of this Act have otherwise agreed , when an arbitral

tribunal determines to make an award for the payment of money

(whether on a claim for a liquidated or an unliquidated amount), the

tribunal may, subject to subsection (2) , include in the sum for which the

award is made interest at such a reasonable rate as the tribunal may

determine on the whole or any part of the money, and for the whole or

any part of the period between the date on which the cause of action

arose, and the date onwhich the award is made.

(2)

Subsection (1) does not

(a)

authorise the awarding of interest upon interest;

(b)

apply in relation to any amount upon which interest is

payable as of right whether by virlue of an agree ment or o th erwise;

"d

(c) affect the damages that may be recove ra ble as a result of

a bill of exchange being dishonoured.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

Unleu the parties to an arbitralion agreeme nt falling unde r In.enWon ......

this Part of this A ct have otherwise agreed, where an arbitral tribun al uoo.r . ... r<!.

makes a n award for the payment of money, the tribunal may direct thai ,

interest al such reasonable rale as the tribunal may deleonine, is

payable, from the date: re fe rred to in Article 31(3) of the Mode l Law o r

such later day ru; the tribun al specifies.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( I) Unless the parties to an arbitration agreemen t falling eo.uandf<d.

under this Part of this Act have otherwise agreed, the arbitral tri bunal

shall fix the costs and fees of arbitration in th e award in accordance with

section SO, 51, 52 and 53 mwatis mutandis.

(2) If no provislon is made by an award with respect to the

costs and fe es of the arbitra tion, a party to the arbitration agreement

may, within fourteen days after receiYing th e award, apply to the

arbitral tribunal for directions as to the payment of the said costs and

fe es, and thereupon the tribunal sha11 , after hearing the Registrar and

any pany who wishes to be heard, ame nd the awa rd in accordanee with

section 65(1),

66, Subsection (5) o f section 20 hereof applies to any arbitrator Uabil"~or

involved in arbitrations held under this Pan of this Act.

With the agreement of the panies or at the requ est of a pany,

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

Is-subartikolu (5) la' l·artikolu 20 la' dan I-Alt japplika ghal ~bbi'"

kull arbilru involul farbitraggi Ii jsiru bis-saJiha ta' din il-Taqsima la' II 1-artJitnI.

dan I-AU.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

as the case may be, where the arbitral tribuna l, in accordance with th e

Model Law, holds oral hearings or proceedings on the basis of

documents or oth er materials, section 18 of this Act shall without

prejudice to the Model Law, apply.

'

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

This Part does not apply in relation to an international

commercial arbitration between panies to an arbitration agreemen t

that was concluded before the commencement Of Ihis Part uf Ihis Act

unl ess Ihe panics haye otherwise agreed.

PART VI

Powers of the Court with r espect to Arbitrations

69, SaYing the proyisions of the Constitution and oflhe European

Convention Act, in mailers goyerned by this Act, no court shall

intervene or have jurisdiction in any matter ClIccpt where so provided

for in this Act .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) An award given pursuant to an arbitration agreement in

accordance with ParI IV of this Act, shall upon its registration by tbe

Centre, as provided in seclion n oflhis Act, constitute an executive title

for the purposes of Title VII of ParI I of Book Secon'd of the Code of

Organisation and Civil Procedure.

(2)

Recourse against an arbitral award delivered under Part

IV may be made only to the Court of Appeal by application praying that

the award be set aside in accordance with the following subsections.

(3)

Subject to the provisions of section 71, the Court of

Appeal shall only decree th at an award shall be set aside if

(a) the applicant proves to the satisfaction of the Court of

Appeal that

(i) a party to the arbitration agreement was under some

incapacity to enter the arbitration agreement; or that the said

agreement was not valid under the law to which the parties

have subjected it; or

(ii) the party against whom the award is invoked was not

given proper notice of the appointment of an arbitrator or of

the arbitral proceedings or was otherwise impeded from

presenting his case; or

(iii) the award deals with a dispute not contemplated by

or not falling wit hin the terms of the submission to arbi t ration ,

or it contains decisions on matters beyond the .>Cope of the

submission to arbitration

Provided that if decisions on maners submitted to

arbitration can be separated from th ose not so submitted , only

that part of the awa rd which contains decisions on matters not

submilled to arbitration may be set aside; or

(iv) the composition of the arbitral tribunal or the

arbitral procedure was no t in accordance with the agreement

of the parties, unless such agreement was in conflict with a

provision of th is Act from which the parties cannot derogate,

or, failing such agreement, was not in accordance with this

Act.

(b) the Court of Appeal finds that

0) the subject'matter of the dispute is not capable of

settlement by arbitration under the Laws of Malta; or

(ii)

the award is in conflict with the public policy of

Malta.

(4) The application referred to in subsection (2) of this

section shall be made within thirty days from the notification to the

applicant by judicial act of the registration of the award by the Centre in

accordance with this Act.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

The Court of Appeal, when asked loset aside an award, may, R • ..,mpUon of

where appropriate, and when so required by a party, suspend the seuing .,bitT')

proceeding>.

aside proceedings for a period of time determined by it, in order to give

the arbitral tribunal an opportunity to resume th e arbitral proceedings

or to take such other action as in the tribunal'sopinion will eliminate th e

grounds for setting aside.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(1) Where the regi stration of any award or document under R<plrohOll

this Act is required to be made with the Cen tre, the award or document, with and by the

Centre.

or an authentic copy thereof, shall be deposited with the Registrar

together with such fee as may from time to time be prescribed for such

registration.

(2) The Registrar shall refuse to register an award or a

document if the same does not comply with any of the provisions of this

Act or of the rules made by the Centre relative to such Act.

(3) In the case of an arbi tration conducted under Part IV of

this Act, the provisions of subsections (2) , (3), (4) and (5) of section 38,

section 70 and section 71 shall only apply and the proceedings shall only

be valid where prior to the commencement of the proceedings, the

arbitration agreement is registered by the Centre in acco rd ance with

section 17 of this Act.

(4) In the case of an arbitration, conducted under Part IV 01

th is Act, the award shall not be registered unless the arbitration

agreement was registered by the Centre in accordance with section 17 of

this Act.

(5) Where the Registrarrefuses the registration of any award

or document , the party requesting registration may, within thirty days

from such refusal, request the Chairman to order the Registrar to accept

such registration, and the decision of the said Chairman shall be final

and binding.

(6) The fact that an award or document has been accepted

for registration by the Centre shall not preclude the challenge of the

validity of such award or document under any provision of this Act.

73, (1) The Chairman shall regularly report to the Board any Cb.oirman

decision given by him pursuant to any power in or under this Act.

(2) Any such decision shall not be subject to review by the

Board, but any member of the said Board may request that any

objection he may have to such a decision shall be recorded in the

minutes of the Board and such member may, moreover, make a report

thereon to the Minister.

PART VII

Recognition and EnforcemtDt 01 Foreign Awards

74, (1) Saving the relevant sections of this Act, foreign

arbitration awards, to which the treaties set out in the Second Scedule

are applicable , shall upon their registration by the Centre be enforced

by th e Courts o f Malta in the same manner as if such awards we re

delivered under Part IV o! this Act.

(2) The Minister ma y by notice in the Gazette add 10 , delete

from o r substitute the list of treaties to which Malta is a Part y and

contained in th e Second Schedule to this Act.

(3) A certirlcate signed by the Ministe r responsible for

foreign affairs, or by any public officer designated by the said Minister

for such purpose by notice in the Gazette, purporting that, at the lime

specified in the certificate, any Siale has signed and ratified or has

denounced, or has takcn any othe r action under the treaties listed in the

Schedules to this Act in respect of the state specified in the ce rtirK'llte,

shall be conclusive evide nce before any court or other authority of the

faclS therein stated.

(4) Notwit hstanding the provisions of subsection ( I) of

secti on 74, any award delivered under a mu lti late ral or bilate ral

agreement to which Malta is a party shall, upon its regislTation by the

Centre, be enforced by the Couns of Malta in the same manner as if

such awa rd was deliyc red under Pan IV of this Act.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

(I ) IC-Chairman

tal·Bord

tal·Gvernaturi

ghandu 1 ~·CINI;"""n

regolannent jagl'lmel rapport lill-Bord dwar kull deCifjoni Ii huwa jagl'lti

skond xi setgha fdan \-Att jew bis-sahha lieghu.

(2) Kull deCiijoni bhal dik rna tkunx tisla' ligi riveduta mill-

Bord, iida kull membru ta' dak il-Bord jisla' jitlob Ii kull oggezzjoni Ii

jisla' jkol1u ghal dik id-deCitjoni tigi regislrata m-minuti tal-Bord u dak

il-membru jista' wkoll jagl'lmel rapport dwar dan lill-Ministru.

TAQSIMA VII

Gr.-men u F.i8uz:rJoni ta' Detlijonljld ,a'

Arbitragg Barraoln

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

( 1) Salv id-dispoiizzjonijici ta ' I-artikoli re levanti la' dan 1-

AU . deCiijonijiella' arbitraU barraoin , Ii ghali homjapplikaw it-trattali

migj uba fil-Tieni Skeda Ii linsab rna ' dan I-An , gl'landhom jigu esegwiti

mill-Orali la' MalIa hekk kir dawn jigu registrali gl\and ic-Centru bl-

iSless mod bhallikieku dawk id-decitjonijiet kienu nghataw laM it-

Taqsima IV ta ' dan j·An.

(2) 11·MiniSlru jista ' b'avviz fil-Gazzcltl jt id , iliassar jew

jissoslilwiJIXi I-e le nku ta ' tratta ti Ii Malta qe gbda Parti fihom u Ii jidhru

fit -T icni Skeda Ii tinsab rna ' dan I-AU.

(3) Certifikat i(firmal mill-Ministru Te$ponsabbli gI'Ia ll-

affarijie! barraoin ,jew minn kull uffiqal pubbliku lijinhatar minn dak il-

MinislTU gllal dak il-gflan b'avvi:i. fiI -Gazzetta , Ii jfisser Ii, fiI-waql

spetifikat fl -iSless tertifikal , xi slat ikun iffinna u irra ti fika jew ikun

iddenuntja, jew ha xi aujoni ohra taht il-I rallali elenkati fl-I skedi Ii

jinsabu rna' dan I-AU dwar il-Ierrilorju speCifikal fi6-Certifi kat , ikun ta'

prova konklutiva qudd ie m qoni jew awtorit! ohra lal-faui Ii jkunu fih

dikjarati .

(4) Minkejja d-dispo:i.izzjonijiel tas-sobartikol u ( I) la' 1-

artikolu 74, kull deti:i.joni taO arbi lragg rnoglllija bis-sahha ta' ftehim

mullilaterali jew bilalerali Ii Malta Ikun qeghda parti fih gflandha, malli

di n ligi registra ta mit -Centru , ligi esegwita mill-Orall la' Malta bl-istess

mod bhallikieku dik.id-decitjoni nghalat skond il-Taqsima IV la' dan 1-

Au.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( I) For Ihe purposes o f this Act , any question required to be

det ermined by arbi tratio n unde r any other law, fo reign ordomeslic, the

provisions of such law shall, unless they provide for arb it rat ion by a

board , tribunal or othcr aut hority set up for the pu rpose, be read as if

that other law were an arbit rati on agreement.

(2) Any award delivered in terms of subsection ( I ) of this

section shall be recognised and e nforced by the Co urtsofMa lta upon its

registration by the Centre, in the same manner as if such award were

de liyered under Pan IV of this Act .

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

(I) Awa rds deliyered pursuant to the Conyention on th e

Senleme nt o f Invest me nt Disputes between States and Nationals of

othe r States, which convention was opened for signature in Washington

on th e 18th March , }96j, (which convention is hereafter in this section

referred to as "the Convention" and is reprodu ced in the Thi rd Schedule

to this Act) shall be recognised and enforced by the Coum a f Malta as if

such awards were final judgements under the laws of Mal ta. '

(2) The provisions of subsection (1) ofthis seetion shall apply

only to such awards on disputcs submitted to arbi tration by the parties

the re to in aOXlrdance wi th the Convention and not otherwise excluded

in accordance with th e same Conyention.

(3) For the purposes of Article S4 of the Conyention, the

competent authority shall be the Centre.

(4) The Prime Minister may by order in thc Gazett e and

notwi thstanding any other law. make provision to give effect to any pan

of th e Conve ntion, and without prejudice to the ge nerality of the

fo regoing may by such order grant such immunities and exemptions

from any law as may be required by the Conyen tion.

PART VIII

MisctUaneollS

n . In cascof any conffict between the Maltese and English. text of

any of the First , Second and Third Schedules to Ihis Act, the English

text shall prevail.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

Jekk ikun hemm xi nuqqas taO qbil bejn it-lest Maid u dak [lsien .wI

Ingli! f1 -Ewwei, fit-Tie ni u fit-Tielel Skedi Ii jinsabu ma' dan I-AIt, n .... kedi.

jipprevali t-test (nglii.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

( I) The Arbitration Clauses (Protocol) O rdinance and the

Arbitration (Fore ign Awards) Ordinance, are hereby repealed.

(2) The enactme nts in the First Column in the Fourth cap.

Gazzetta tal-Gvern ta' Malta — Att 1996 2 — ACT No. 11 of 1996 ATT Nru. IIt8'1-1996 AN ACf e nacted by the Pa rliame nt of ATI mahrug b'ligi mill-Parla ment Malta .

81a hsara ghall-anikolu 68, da n J-AU japplika ghal kull ftehim

ta ' arbitragg, sew jekk maglimul qabel jew wara I-bidu fis-sehh ta' dan I-

Au, u ghal kull arbitragg lahl dak il-fte him

Itda meta proeedimenti la' arbitragg kie nu bdewqabel id-data

tal-bidu tis-senh ta' dan I-Au u jkunu ghadhom pendenli fdik id-data

fdak ii-kat, minkejja kul,1 haga Ii he mm fdan I-AIt, dawk il-

pro¢edime ntijibqghu regolati bil-ligi applikabblighalihom qabel il-bidu

fis-sehh la' dan I-A U sake mm jJ-partijiel kollha fdawk il-pro¢edimenti

ma jaqblux Ii dan I-Au ghandu japplika glial dawk il·pro¢edimenti

b'effett mid-data ta ' dak il-qbil u fdan ii-kat dan I-Att ghandu japplika

b'dak ii-mod.

Malta Government Gazette — Act 1996 2 — II tal-1996 - Att tal-1996 dwar l-Arbitragg

Schedule to this Act shall have effect subject to the amendments

appearing relative thereto in the Second Column of the said Schedule.

79. Subject to section 68, this Act applies to every arbitration

agreement, whether made before or after the commencement of this

Act, and to every arbitration under such an agreement

Provided that where arbitration proceedings had been

commenced before the date of commencement of this Act and are still

pending on that date then , notwithstanding any thing Contained in this

Act, those proceedings shall continue to be governed by the law

applicable thereto befo re the commencement of this Act unless all the

parties to those proceedings agree that this Act shall apply thereto with

effect from the dale o f the agreemen t whereupon this Act shall apply

aooordingly.

A

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