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2010 ARBITRATION ACT 2010 ARRANGEMENT

SECTIONS PART 1 Preliminary and General Section

1. Short title and commencement.
2. Interpretation.
3. Application

Act. 4. Repeals and effect

repeals.

1. Expenses. PART 2 Arbitration
2. Adoption

Model Law. 7. Commencement

arbitral proceedings. 8. Construction

Model Law and construction

arbitration clauses. 9. Functions

High Court. 10. Court powers exercisable in support

arbitral proceedings. 11. Determination

court to be final. 12. Time limits for setting aside awards on grounds

public policy. 13. Default number

arbitrators. 14. Examination

witnesses. 15. Taking evidence in State in aid

foreign arbitration. 16. Consolidation

and concurrent arbitrations. 17. Reference

interpleader to arbitration.

1. Interest.
2. Security for costs.
3. Specific performance.
4. Recoverability

costs, fees and expenses

tribunal. 22. Restriction on liability

arbitrators, etc. 23. Effect

award.

1. New York Convention, Geneva Convention and Geneva Protocol.
2. Non-application

provisions

Act to Washington Convention, save in certain circumstances. 26. Survival

agreement and authority

arbitral tribunal in event

death. 27. Provisions in event

bankruptcy.

1. Full applicability to State parties.
2. Application

Act to arbitrations under other Acts. 30. Exclusion

certain arbitrations.

1. Arbitration agreements and small claims, etc. PART 3 Reference to Arbitration Where Proceedings Pending Before Court
2. Power

High Court and Circuit Court to adjourn proceedings to facilitate arbitration. SCHEDULE 1 TEXT

UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION SCHEDULE 2 TEXT

1958 CONVENTION ON THE RECOGNITION AND ENFORCEMENT

FOREIGN ARBITRAL AWARDS SCHEDULE 3 TEXT

1965 CONVENTION ON THE SETTLEMENT

INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS

OTHER STATES SCHEDULE 4 TEXT

1927 CONVENTION ON THE EXECUTION

FOREIGN ARBITRAL AWARDS SCHEDULE 5 TEXT

1923 PROTOCOL ON ARBITRATION CLAUSES SCHEDULE 6 CONSEQUENTIAL AMENDMENTS TO OTHER ACTS Acts Referred to Arbitration Act 1954 1954, No. 26 Arbitration Acts 1954 to 1998 Copyright and Related Rights Act 2000 2000, No. 28 Industrial Relations Act 1946 1946, No. 26 Landlord and Tenant (Ground Rents) Act 1967 1967, No. 3 Legal Practitioners (Ireland) Act 1876 39 & 40 Vict., c. 44 Merchant Shipping Act 1894 57 & 58 Vict., c. 60 Patents Act 1992 1992, No. 1 Property Values (Arbitration and Appeals) Act 1960 1960, No. 45 Statute

Limitations 1957 1957, No. 6 Number 1

2010 ARBITRATION ACT 2010 AN ACT TO FURTHER AND BETTER FACILITATE RESOLUTION

DISPUTES BY ARBITRATION; TO GIVE THE FORCE

LAW TO THE UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION (AS AMENDED BY THE UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW ON 7 JULY 2006) IN RESPECT

BOTH INTERNATIONAL ARBITRATION AND OTHER ARBITRATION; TO GIVE THE FORCE

LAW TO THE PROTOCOL ON ARBITRATION CLAUSES OPENED AT GENEVA ON THE 24TH DAY

SEPTEMBER 1923, THE CONVENTION ON THE EXECUTION

FOREIGN ARBITRAL AWARDS DONE AT GENEVA ON THE 26TH DAY

SEPTEMBER 1927, THE CONVENTION ON THE RECOGNITION AND ENFORCEMENT

FOREIGN ARBITRAL AWARDS DONE AT NEW YORK ON 10 JUNE 1958 AND TO THE CONVENTION ON THE SETTLEMENT

INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS

OTHER STATES OPENED FOR SIGNATURE IN WASHINGTON ON 18 MARCH 1965; TO REPEAL THE ARBITRATION ACTS 1954 TO 1998; AND TO PROVIDE FOR RELATED MATTERS. [8th March, 2010] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART 1 Preliminary and General Short title and commencement. 1.—

Article 7

; “award” includes a partial award; “consumer” means a natural person, whether in the State or not, who is acting for purposes outside the person’s trade, business or profession; “Geneva Convention” means the Convention on the Execution

Foreign Arbitral Awards done at Geneva on the 26th day

September, 1927, the text

which is set out in Schedule 4 ; “Geneva Protocol” means the Protocol on Arbitration Clauses opened at Geneva on the 24th day

September, 1923, the text

which is set out in Schedule 5 ; “Minister” means the Minister for Justice, Equality and Law Reform; “ Model Law ” means the UNCITRAL Model Law on International Commercial Arbitration (as adopted by the United Nations Commission on International Trade Law on 21 June 1985, with amendments as adopted by that Commission at its thirty-ninth session on 7 July 2006), the text

which is set out in Schedule 1 ; “New York Convention” means the Convention on the Recognition and Enforcement

Foreign Arbitral Awards, done at New York on 10 June 1958, the text

which is set out in Schedule 2 ; “State authority” means— (a) a Minister

the Government, (b) the Commissioners

Public Works in Ireland, (

1. c)the Irish Land Commission, (
2. d)the Revenue Commissioners, (
3. e)a body established by or under any enactment, andfinanced wholly or partly, whether directly or indirectly, by moneys provided, or loans made or guaranteed, by a Minister

the Government or the issue

shares held by or on behalf

any Minister

the Government; “Washington Convention” means the Convention on the Settlement

Investment Disputes between States and Nationals

Other States opened for signature in Washington on 18 March 1965, the text

which is set out in Schedule 3 .

the Model Law. Application

Act. 3.—

repeals. 4.—

the Acts referred to in subsection

the repeal, in respect

any right, privilege, obligation or liability and any proceedings taken under those Acts in respect

any such right, privilege, obligation or liability acquired, accrued or incurred under the Acts may be instituted, continued or enforced as if the Acts concerned had not been repealed.

this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out

moneys provided by the Oireachtas. PART 2 Arbitration Adoption

Model Law. 6.— Subject to this Act, the Model Law shall have the force

law in the State and shall apply to arbitrations under arbitration agreements concerning— (

1. a)international commercial arbitrations, or (
2. b)arbitrations which are not international commercial arbitrations. Commencement

arbitral proceedings. 7.—

this Act and for the purposes

section 496

the Merchant Shipping Act 1894 (as amended by section 29 ) arbitral proceedings shall be deemed to be commenced on— (a) the date on which the parties to an arbitration agreement so provide as being the commencement date for the purposes

the commencement

arbitral proceedings under the agreement, or (b) where no provision has been made by the parties as to commencement

proceedings as referred to in paragraph (a), the date on which a written communication containing a request for the dispute to be referred to arbitration is received by the respondent.

Limitations 1957 is amended by substituting the following section for section 74: “74.—

this Act and for the purposes

any other limitation enactment, arbitral proceedings shall be deemed to be commenced on— (a) the date on which the parties to an arbitration agreement so provide as being the commencement date for the purposes

the commencement

arbitral proceedings under the agreement, or (b) where no provision has been made by the parties as to commencement as referred to in paragraph (a), the date on which a written communication containing a request for the dispute to be referred to arbitration is received by the respondent.

subsection

the following ways: (

1. a)by delivering it to the respondent personally; (
2. b)by delivering it to the respondent’s place

business, habitual residence or postal address; (c) where none

the addresses referred to in paragraph (b) can be found after making reasonable inquiry, by sending it by pre-paid registered post or by any other form

recorded delivery service addressed to the respondent at his or her last known place

business, habitual residence or postal address.

subsection

fice in the State and every other body corporate (wherever it is incorporated) and every unincorporated body (wherever it carries out its activities) shall be deemed to be habitually resident at its principal

fice or place

business.”. Construction

Model Law and construction

arbitration clauses. 8.—

the travaux préparatoires

the United Nations Commission on International Trade Law and its working group relating to the preparation

the Model Law.

any provision

the Model Law and shall be given such weight as is appropriate in the circumstances.

a contract or agreement shall be submitted to arbitration, this shall include disputes as to the existence or validity

the contract or agreement. Functions

High Court. 9.—

Article 6

, (b) the relevant court for the purposes

Article 9

, and (c) the court

competent jurisdiction for the purposes

Articles 17H, 17I, 17J, 27, 35 and 36.

the High Court— (a) under an Article referred to in subsection

the High Court as may be nominated by the President, subject to any rules

court made in that behalf.

the High Court as may be nominated by the President under subsection

the High Court. Court powers exercisable in support

arbitral proceedings. 10.—

the arbitration or make any order for discovery

documents. Determination

court to be final. 11.— There shall be no appeal from— (a) any court determination

a stay application, pursuant to Article 8

the Model Law or Article II

the New York Convention, (b) any determination by the High Court— (i)

an application for setting aside an award under Article 34

the Model Law, or (ii)

an application under Chapter VIII

the Model Law for the recognition and enforcement

an award made in an international commercial arbitration, or (c) any determination by the High Court in relation to an application to recognise or enforce an arbitral award pursuant to the Geneva Convention, New York Convention or Washington Convention. Time limits for setting aside awards on grounds

public policy. 12.— Notwithstanding Article 34

the State shall be made within a period

56 days from the date on which the circumstances giving rise to the application became known or ought reasonably to have become known to the party concerned. Default number

arbitrators. 13.— Unless otherwise agreed by the parties, the arbitral tribunal shall consist

one arbitrator only. Examination

witnesses. 14.— Unless otherwise agreed by the parties, the arbitral tribunal may for the purposes

the arbitral proceedings concerned— (

1. a)direct that a party to an arbitration agreement or a witness who gives evidence in proceedings before the arbitral tribunal be examined on oath or on affirmation, and (
2. b)administer oaths or affirmations for the purposes

the examination. Taking evidence in State in aid

foreign arbitration. 15.— The reference in Article 27 to an arbitral tribunal includes a reference to an arbitral tribunal conducting arbitral proceedings in a place other than the State. Consolidation

and concurrent arbitrations. 16.—

that party or parties, (b) concurrent hearings shall be held, on such terms as may be agreed between the parties concerned.

proceedings or concurrent hearings unless the parties agree to the making

such an order. Reference

interpleader to arbitration. 17.—

interpleader is granted by a court and it appears to the court that the issue between the claimants is one in respect

which there is an arbitration agreement between the claimants, the court shall direct that the issue between the claimants be determined in accordance with the agreement.

being performed.

legal proceedings in respect

any matter shall not affect the determination

that issue by the court. Interest. 18.—

interest.

any amount awarded by the arbitral tribunal, in respect

any period up to the date

the award, or (b) on all or part

any amount claimed in the arbitration and outstanding at the commencement

the arbitration but paid before the award was made, in respect

any period up to the date

payment.

the award (or any later date) until payment, at the rates and with the rests that it considers fair and reasonable, on the outstanding amount

any award (including any award

interest under subsection

costs).

a declaratory award by the arbitral tribunal.

the arbitral tribunal to award interest. Security for costs. 19.—

Article 19

, the arbitral tribunal may, unless otherwise agreed by the parties, order a party to provide security for the costs

the arbitration.

the arbitration solely on the ground that the party is— (

1. a)an individual who is domiciled, habitually resident, or carrying on business outside the State, or (
2. b)a body corporate established under a law

a place other than the State or whose central management and control is situated outside the State. Specific performance. 20.— Without prejudice to the generality

the Model Law, an arbitral tribunal shall, unless otherwise agreed by the parties, have the power to make an award requiring specific performance

a contract (other than a contract for the sale

land). Recoverability

costs, fees and expenses

tribunal. 21.—

the arbitration as they see fit.

the parties to arbitrate subject to the rules

an arbitral institution shall be deemed to be an agreement to abide by the rules

that institution as to the costs

the arbitration.

an arbitration (other than an international commercial arbitration) the arbitral tribunal shall, on the request

any

the parties to the proceedings made not later than 21 working days after the determination by the tribunal in relation to costs, make an order for the taxation

costs

the arbitration by a Taxing Master

the High Court, or as the case may be, the County Registrar; and the Taxing Master, or as the case may be, the County Registrar, shall in relation to any such taxation, have (with any necessary modifications) all the functions for the time being conferred on him or her under any enactment or in any rules

court in relation to the taxation

costs to be paid by one party to another in proceedings before a court.

recoverable costs, fees or expenses, as appropriate, and the amount referable to each, and (c) by and to whom they shall be paid.

the European Communities (Unfair Terms in Consumer Contracts) Regulations 1995 and 2000, an arbitration agreement— (a) to which one

the parties to the agreement is a consumer, and (b) a term

which provides that each party shall bear his or her own costs, shall be deemed to be an unfair term for the purposes

those Regulations.

the Legal Practitioners (Ireland) Act 1876 shall apply as if an arbitration were a proceeding in the High Court and the Court may make declarations and orders accordingly.

the arbitral tribunal; “ fees and expenses

the arbitral tribunal ” include the fees and expenses

any expert appointed by the tribunal. Restriction on liability

arbitrators, etc. 22.—

his or her functions.

an arbitrator and to an expert appointed under Article 26, as it applies to the arbitrator.

that function.

his or her functions as arbitrator.

an arbitral or other institution or person as they apply to that arbitral or other institution or that person mentioned in those subsections. Effect

award. 23.—

section 25 ) made by an arbitral tribunal under an arbitration agreement shall be enforceable in the State either by action or, by leave

the High Court, in the same manner as a judgment or order

that Court with the same effect and where leave is given, judgment may be entered in terms

the award.

those parties by way

defence, set-

f or otherwise in any legal proceedings in the State.

an award under the Geneva Convention, the New York Convention or the Washington Convention.

an award in arbitral proceedings which took place in the State. New York Convention, Geneva Convention and Geneva Protocol. 24.—

law in the State.

the New York Convention shall be interpreted in accordance with the recommendation adopted by the United Nations Commission on International Trade Law on 7 July 2006 at its thirty-ninth session concerning the interpretation

those Articles.

the New York Convention shall be construed in accordance with Article 8

the Model Law.

provisions

Act to Washington Convention, save in certain circumstances. 25.—

law to Article 8

the Model Law, shall not apply to proceedings pursuant to the Washington Convention.

that Convention in relation to any question which the Tribunal referred to in that Article had omitted to decide in the award, or in relation to the rectification

any clerical, arithmetical or similar error in the award, (b) pursuant to Articles 50, 51 and 52

that Convention, interpreting, revising or annulling the award, and (c) pursuant to Article 61

that Convention in relation to costs.

law in the State.

the Government arising under Article 17

the Washington Convention and any sums required for this purpose; and any administrative expenses incurred by the Minister for Finance as a result

acceptance by the State

the Washington Convention shall be paid out

moneys provided by the Oireachtas.

the High Court, be enforceable in the same manner as a judgment or order

the High Court to the same effect and, where leave is so given, judgment may be entered for the amount due or, as the case may be, the balance outstanding under the award.

the award certified in accordance with Article 54

the Washington Convention.

an award has been stayed, whether provisionally or otherwise, in accordance with Articles 50, 51 or 52

the Washington Convention, stay enforcement

the pecuniary obligations imposed by the award and may, in any case where an application has been made in accordance with any

those Articles which, if granted, might result in a stay on the enforcement

the award, stay enforcement

the pecuniary obligations imposed by the award. Survival

agreement and authority

arbitral tribunal in event

death. 26.—

any party thereto, either as respects the deceased or any other party, but shall in such an event be enforceable by or against the personal representatives

the deceased.

an arbitral tribunal shall not be revoked by the death

any party by whom he or she was appointed.

any enactment or rule

law by virtue

which any right

action is extinguished by the death

a person. Provisions in event

bankruptcy. 27.—

a contract to which a bankrupt is a party, the agreement shall, if the assignee or trustee in bankruptcy does not disclaim the contract, be enforceable by or against him or her insofar as it relates to any dispute arising out

, or in connection with, such a contract.

the bankruptcy, become a party to an arbitration agreement, and (b) any matter to which the agreement applies requires to be determined in connection with or for the purposes

the bankruptcy proceedings, and (c) the case is one to which subsection

the committee

inspection, the trustee in bankruptcy, may apply to the court having jurisdiction in the bankruptcy proceedings for an order directing that the matter in question shall be referred to arbitration in accordance with the agreement and that court may, if it is

the opinion that having regard to all the circumstances

the case, the matter ought to be determined by arbitration, make an order accordingly.

ficial Assignee in Bankruptcy. Full applicability to State parties. 28.— This Act shall apply to an arbitration under an arbitration agreement to which a State authority is a party. Application

Act to arbitrations under other Acts. 29.—

Schedule 6 are amended to the extent specified in that Schedule.

section 496

the Merchant Shipping Act 1894 , the reference to legal proceedings shall be construed as including a reference to arbitration.

section 8 , sections 17 , 26 , 27 , 30 and 31 and Articles 12 and 13. Exclusion

certain arbitrations. 30.—

any question relating to the terms or conditions

employment or the remuneration

any employees, including persons employed by or under the State or local authorities, or (b) an arbitration under section 70

the Industrial Relations Act 1946 .

the Property Values (Arbitration and Appeals) Act 1960 . Arbitration agreements and small claims, etc. 31.—

doubt, a reference in this section to a consumer shall not include an amateur sportsperson who, in his or her capacity as such, is a party to an arbitration agreement that contains a term concerning the requirement to submit to arbitration. PART 3 Reference to Arbitration Where Proceedings Pending Before Court Power

High Court and Circuit Court to adjourn proceedings to facilitate arbitration. 32.—

any other enactment or rule

law, the High Court or the Circuit Court may at any time whether before or during the trial

any civil proceedings before it— (

1. a)if it thinks it appropriate to do so, and (
2. b)the parties to the proceedings so consent, by order adjourn the proceedings to enable the parties to consider whether any or all

the matters in dispute might be determined by arbitration.

the period referred to in subsection

the matters in dispute should be dealt with by arbitration.

this Act.

an agreement referred to in subsection

the matters in dispute, shall by order provide for the discontinuance

the proceedings and may make such order as to the costs

the proceedings as it thinks fit, or (b) where the agreement relates to part but not all

the matters in dispute, may make such order as to the discontinuance

the proceedings as it thinks fit.

the proceedings.

a court to adjourn civil proceedings before it. SCHEDULE 1 TEXT

UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION (As adopted by the United Nations Commission on International Trade Law on 21 June 1985, with amendments as adopted by that Commission on 7 July 2006) CHAPTER I. GENERAL PROVISIONS Article 1. Scope

application

this Law, except articles 8, 9, 17H, 17I, 17J, 35 and 36, apply only if the place

arbitration is in the territory

this State.

the conclusion

that agreement, their places

business in different States; or (b) one

the following places is situated outside the State in which the parties have their places

business: (i) the place

arbitration if determined in, or pursuant to, the arbitration agreement; (ii) any place where a substantial part

the obligations

the commercial relationship is to be performed or the place with which the subject matter

the dispute is most closely connected; or (c) the parties have expressly agreed that the subject matter

the arbitration agreement relates to more than one country.

paragraph

this article: (a) if a party has more than one place

business, the place

business is that which has the closest relationship to the arbitration agreement; (b) if a party does not have a place

business, reference is to be made to his habitual residence.

this State by virtue

which certain disputes may not be submitted to arbitration or may be submitted to arbitration only according to provisions other than those

this Law. Article 2. Definitions and rules

interpretation For the purposes

this Law: (

1. a)“arbitration” means any arbitration whether or not administered by a permanent arbitral institution; (
2. b)“arbitral tribunal” means a sole arbitrator or a panel

arbitrators; (c) “court” means a body or organ

the judicial system

a State; (d) where a provision

this Law, except article 28, leaves the parties free to determine a certain issue, such freedom includes the right

the parties to authorize a third party, including an institution, to make that determination; (e) where a provision

this Law refers to the fact that the parties have agreed or that they may agree or in any other way refers to an agreement

the parties, such agreement includes any arbitration rules referred to in that agreement; (f) where a provision

this Law, other than in articles 25(a) and 32

written communications

business, habitual residence or mailing address; if none

these can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee’s last-known place

business, habitual residence or mailing address by registered letter or any other means which provides a record

the attempt to deliver it; (b) the communication is deemed to have been received on the day it is so delivered.

this article do not apply to communications in court proceedings. Article 4. Waiver

right to object A party who knows that any provision

this Law from which the parties may derogate or any requirement under the arbitration agreement has not been complied with and yet proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, if a time-limit is provided therefor, within such period

time, shall be deemed to have waived his right to object. Article 5. Extent

court intervention In matters governed by this Law, no court shall intervene except where so provided in this Law. Article 6. Court or other authority for certain functions

arbitration assistance and supervision The functions referred to in articles 11

arbitration agreement

a defined legal relationship, whether contractual or not. An arbitration agreement may be in the form

an arbitration clause in a contract or in the form

a separate agreement.

data messages; “data message” means information generated, sent, received or stored by electronic, magnetic, optical or similar means, including, but not limited to, electronic data interchange (EDI), electronic mail, telegram, telex or telecopy.

statements

claim and defence in which the existence

an agreement is alleged by one party and not denied by the other.

the contract. Option II Article 7. Definition

arbitration agreement “Arbitration agreement” is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect

a defined legal relationship, whether contractual or not. Article 8. Arbitration agreement and substantive claim before court

an arbitration agreement shall, if a party so requests not later than when submitting his first statement on the substance

the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable

being performed.

this article has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the court. Article 9. Arbitration agreement and interim measures by court It is not incompatible with an arbitration agreement for a party to request, before or during arbitral proceedings, from a court an interim measure

protection and for a court to grant such measure. CHAPTER III. COMPOSITION

ARBITRAL TRIBUNAL Article 10. Number

arbitrators

arbitrators.

arbitrators shall be three. Article 11. Appointment

arbitrators

his nationality from acting as an arbitrator, unless otherwise agreed by the parties.

appointing the arbitrator or arbitrators, subject to the provisions

paragraphs

this article.

receipt

a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days

their appointment, the appointment shall be made, upon request

a party, by the court or other authority specified in article 6; (b) in an arbitration with a sole arbitrator, if the parties are unable to agree on the arbitrator, he shall be appointed, upon request

a party, by the court or other authority specified in article 6.

them under such procedure, or (c) a third party, including an institution, fails to perform any function entrusted to it under such procedure, any party may request the court or other authority specified in article 6 to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment.

this article to the court or other authority specified in article 6 shall be subject to no appeal. The court or other authority, in appointing an arbitrator, shall have due regard to any qualifications required

the arbitrator by the agreement

the parties and to such considerations as are likely to secure the appointment

an independent and impartial arbitrator and, in the case

a sole or third arbitrator, shall take into account as well the advisability

appointing an arbitrator

a nationality other than those

the parties. Article 12. Grounds for challenge

his appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties unless they have already been informed

them by him.

which he becomes aware after the appointment has been made. Article 13. Challenge procedure

paragraph

this article.

the constitution

the arbitral tribunal or after becoming aware

any circumstance referred to in article 12

the reasons for the challenge to the arbitral tribunal. Unless the challenged arbitrator withdraws from his

fice or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.

paragraph

this article is not successful, the challenging party may request, within thirty days after having received notice

the decision rejecting the challenge, the court or other authority specified in article 6 to decide on the challenge, which decision shall be subject to no appeal; while such a request is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an award. Article 14. Failure or impossibility to act

fice or if the parties agree on the termination. Otherwise, if a controversy remains concerning any

these grounds, any party may request the court or other authority specified in article 6 to decide on the termination

the mandate, which decision shall be subject to no appeal.

fice or a party agrees to the termination

the mandate

an arbitrator, this does not imply acceptance

the validity

any ground referred to in this article or article 12

substitute arbitrator Where the mandate

an arbitrator terminates under article 13 or 14 or because

his withdrawal from

fice for any other reason or because

the revocation

his mandate by agreement

the parties or in any other case

termination

his mandate, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment

the arbitrator being replaced. CHAPTER IV. JURISDICTION

ARBITRAL TRIBUNAL Article 16. Competence

arbitral tribunal to rule on its jurisdiction

the arbitration agreement. For that purpose, an arbitration clause which forms part

a contract shall be treated as an agreement independent

the other terms

the contract. A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity

the arbitration clause.

the statement

defence. A party is not precluded from raising such a plea by the fact that he has appointed, or participated in the appointment

, an arbitrator. A plea that the arbitral tribunal is exceeding the scope

its authority shall be raised as soon as the matter alleged to be beyond the scope

its authority is raised during the arbitral proceedings. The arbitral tribunal may, in either case, admit a later plea if it considers the delay justified.

this article either 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 party may request, within thirty days after having received notice

that ruling, the court specified in article 6 to decide the matter, which decision shall be subject to no appeal; while such a request is pending, the arbitral tribunal may continue the arbitral proceedings and make an award. CHAPTER IV A. INTERIM MEASURES AND PRELIMINARY ORDERS Section 1 . Interim measures Article 17. Power

arbitral tribunal to order interim measures

a party, grant interim measures.

an award or in another form, by which, at any time prior to the issuance

the award by which the dispute is finally decided, the arbitral tribunal orders a party to: (a) Maintain or restore the status quo pending determination

the dispute; (

1. b)Take action that would prevent, or refrain from taking action that is likely to cause, current or imminent harm or prejudice to the arbitral process itself; (
2. c)Provide a means

preserving assets out

which a subsequent award may be satisfied; or (d) Preserve evidence that may be relevant and material to the resolution

the dispute. Article 17 A. Conditions for granting interim measures

damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result to the party against whom the measure is directed if the measure is granted; and (b) There is a reasonable possibility that the requesting party will succeed on the merits

the claim. The determination on this possibility shall not affect the discretion

the arbitral tribunal in making any subsequent determination.

this article shall apply only to the extent the arbitral tribunal considers appropriate. Section 2 . Preliminary orders Article 17 B. Applications for preliminary orders and conditions for granting preliminary orders

the interim measure requested.

the request for the interim measure to the party against whom it is directed risks frustrating the purpose

the measure.

an application for a preliminary order, the arbitral tribunal shall give notice to all parties

the request for the interim measure, the application for the preliminary order, the preliminary order, if any, and all other communications, including by indicating the content

any oral communication, between any party and the arbitral tribunal in relation thereto.

any party or, in exceptional circumstances and upon prior notice to the parties, on the arbitral tribunal’s own initiative. Article 17 E. Provision

security

which the measure was requested or granted.

this article shall apply. Article 17 G. Costs and damages The party requesting an interim measure or applying for a preliminary order shall be liable for any costs and damages caused by the measure or the order to any party if the arbitral tribunal later determines that, in the circumstances, the measure or the order should not have been granted. The arbitral tribunal may award such costs and damages at any point during the proceedings. Section 4 . Recognition and enforcement

interim measures Article 17 H. Recognition and enforcement

the country in which it was issued, subject to the provisions

article 17 I.

an interim measure shall promptly inform the court

any termination, suspension or modification

that interim measure.

the State where recognition or enforcement is sought may, if it considers it proper, order the requesting party to provide appropriate security if the arbitral tribunal has not already made a determination with respect to security or where such a decision is necessary to protect the rights

third parties. Article 17 I. Grounds for refusing recognition or enforcement

an interim measure may be refused only: (a) At the request

the party against whom it is invoked if the court is satisfied that: (i) Such refusal is warranted on the grounds set forth in article 36

security in connection with the interim measure issued by the arbitral tribunal has not been complied with; or (iii) The interim measure has been terminated or suspended by the arbitral tribunal or, where so empowered, by the court

the State in which the arbitration takes place or under the law

which that interim measure was granted; or (

1. b)If the court finds that: (
2. i)The interim measure is incompatible with the powers conferred upon the court unless the court decides to reformulate the interim measure to the extent necessary to adapt it to its own powers and procedures for the purposes

enforcing that interim measure and without modifying its substance; or (ii) Any

the grounds set forth in article 36

the interim measure.

this article shall be effective only for the purposes

the application to recognize and enforce the interim measure. The court where recognition or enforcement is sought shall not, in making that determination, undertake a review

the substance

the interim measure. Section 5 . Court-ordered interim measures Article 17 J. Court-ordered interim measures A court shall have the same power

issuing an interim measure in relation to arbitration proceedings, irrespective

whether their place is in the territory

this State, as it has in relation to proceedings in courts. The court shall exercise such power in accordance with its own procedures in consideration

the specific features

international arbitration. CHAPTER V. CONDUCT

ARBITRAL PROCEEDINGS Article 18. Equal treatment

parties The parties shall be treated with equality and each party shall be given a full opportunity

presenting his case. Article 19. Determination

rules

procedure

this Law, the parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings.

this Law, conduct the arbitration in such manner as it considers appropriate. The power conferred upon the arbitral tribunal includes the power to determine the admissibility, relevance, materiality and weight

any evidence. Article 20. Place

arbitration

arbitration. Failing such agreement, the place

arbitration shall be determined by the arbitral tribunal having regard to the circumstances

the case, including the convenience

the parties.

paragraph

this article, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection

goods, other property or documents. Article 21. Commencement

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

a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. Article 22. Language

claim and defence

time agreed by the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at issue and the relief or remedy sought, and the respondent shall state his defence in respect

these particulars, unless the parties have otherwise agreed as to the required elements

such statements. The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.

the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow such amendment having regard to the delay in making it. Article 24. Hearings and written proceedings

evidence or for oral argument, or whether the proceedings shall be conducted on the basis

documents and other materials. However, unless the parties have agreed that no hearings shall be held, the arbitral tribunal shall hold such hearings at an appropriate stage

the proceedings, if so requested by a party.

any hearing and

any meeting

the arbitral tribunal for the purposes

inspection

goods, other property or documents.

a party Unless otherwise agreed by the parties, if, without showing sufficient cause, (a) the claimant fails to communicate his statement

claim in accordance with article 23

defence in accordance with article 23

the claimant’s allegations; (c) any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the award on the evidence before it. Article 26. Expert appointed by arbitral tribunal

his written or oral report, participate in a hearing where the parties have the opportunity to put questions to him and to present expert witnesses in order to testify on the points at issue. Article 27. Court assistance in taking evidence The arbitral tribunal or a party with the approval

the arbitral tribunal may request from a competent court

this State assistance in taking evidence. The court may execute the request within its competence and according to its rules on taking evidence. CHAPTER VI. MAKING

AWARD AND TERMINATION

PROCEEDINGS Article 28. Rules applicable to substance

dispute

law as are chosen by the parties as applicable to the substance

the dispute. Any designation

the law or legal system

a given State shall be construed, unless otherwise expressed, as directly referring to the substantive law

that State and not to its conflict

laws rules.

laws rules which it considers applicable.

the contract and shall take into account the usages

the trade applicable to the transaction. Article 29. Decision-making by panel

arbitrators In arbitral proceedings with more than one arbitrator, any decision

the arbitral tribunal shall be made, unless otherwise agreed by the parties, by a majority

all its members. However, questions

procedure may be decided by a presiding arbitrator, if so authorized by the parties or all members

the arbitral tribunal. Article 30. Settlement

an arbitral award on agreed terms.

article 31 and shall state that it is an award. Such an award has the same status and effect as any other award on the merits

the case. Article 31. Form and contents

award

the majority

all members

the arbitral tribunal shall suffice, provided that the reason for any omitted signature is stated.

arbitration as determined in accordance with article 20

this article shall be delivered to each party. Article 32. Termination

proceedings

the arbitral tribunal in accordance with paragraph

this article.

the arbitral proceedings when: (a) the claimant withdraws his claim, unless the respondent objects thereto and the arbitral tribunal recognizes a legitimate interest on his part in obtaining a final settlement

the dispute; (b) the parties agree on the termination

the proceedings; (c) the arbitral tribunal finds that the continuation

the proceedings has for any other reason become unnecessary or impossible.

the arbitral tribunal terminates with the termination

the arbitral proceedings, subject to the provisions

articles 33 and 34

award; additional award

receipt

the award, unless another period

time has been agreed upon by the parties: (a) a party, with notice to the other party, may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors or any errors

similar nature; (b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation

a specific point or part

the award. If the arbitral tribunal considers the request to be justified, it shall make the correction or give the interpretation within thirty days

receipt

the request. The interpretation shall form part

the award.

the type referred to in paragraph

this article on its own initiative within thirty days

the date

the award.

receipt

the award, the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award. If the arbitral tribunal considers the request to be justified, it shall make the additional award within sixty days.

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

this article.

article 31 shall apply to a correction or interpretation

the award or to an additional award. CHAPTER VII. RECOURSE AGAINST AWARD Article 34. Application for setting aside as exclusive recourse against arbitral award

this article.

this State; or (ii) the party making the application was not given proper notice

the appointment

an arbitrator or

the arbitral proceedings or was otherwise unable to present his case; or (iii) the award deals with a dispute not contemplated by or not falling within the terms

the submission to arbitration, or contains decisions on matters beyond the scope

the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part

the award which contains decisions on matters not submitted to arbitration may be set aside; or (iv) the composition

the arbitral tribunal or the arbitral procedure was not in accordance with the agreement

the parties, unless such agreement was in conflict with a provision

this Law from which the parties cannot derogate, or, failing such agreement, was not in accordance with this Law; or (b) the court finds that: (i) the subject-matter

the dispute is not capable

settlement by arbitration under the law

this State; or (ii) the award is in conflict with the public policy

this State.

by the arbitral tribunal.

time determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the arbitral tribunal’s opinion will eliminate the grounds for setting aside. CHAPTER VIII. RECOGNITION AND ENFORCEMENT

AWARDS Article 35. Recognition and enforcement

the country in which it was made, shall be recognized as binding and, upon application in writing to the competent court, shall be enforced subject to the provisions

this article and

article 36.

ficial language

this State, the court may request the party to supply a translation thereof into such language. Article 36. Grounds for refusing recognition or enforcement

an arbitral award, irrespective

the country in which it was made, may be refused only: (a) at the request

the party against whom it is invoked, if that party furnishes to the competent court where recognition or enforcement is sought proof that: (i) a party to the arbitration agreement referred to in article 7 was under some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law

the country where the award was made; or (ii) the party against whom the award is invoked was not given proper notice

the appointment

an arbitrator or

the arbitral proceedings or was otherwise unable to present his case; or (iii) the award deals with a dispute not contemplated by or not falling within the terms

the submission to arbitration, or it contains decisions on matters beyond the scope

the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part

the award which contains decisions on matters submitted to arbitration may be recognized and enforced; or (iv) the composition

the arbitral tribunal or the arbitral procedure was not in accordance with the agreement

the parties or, failing such agreement, was not in accordance with the law

the country where the arbitration took place; or (v) the award has not yet become binding on the parties or has been set aside or suspended by a court

the country in which, or under the law

which, that award was made; or (

1. b)if the court finds that: (
2. i)the subject-matter

the dispute is not capable

settlement by arbitration under the law

this State; or (ii) the recognition or enforcement

the award would be contrary to the public policy

this State.

an award has been made to a court referred to in paragraph

this article, the court where recognition or enforcement is sought may, if it considers it proper, adjourn its decision and may also, on the application

the party claiming recognition or enforcement

the award, order the other party to provide appropriate security. SCHEDULE 2 TEXT

1958 CONVENTION ON THE RECOGNITION AND ENFORCEMENT

FOREIGN ARBITRAL AWARDS Article I 1. This Convention shall apply to the recognition and enforcement

arbitral awards made in the territory

a State other than the State where the recognition and enforcement

such awards are sought, and arising out

differences between persons, whether physical or legal. It shall also apply to arbitral awards not considered as domestic awards in the State where their recognition and enforcement are sought.

1. The term “arbitral awards” shall include not only awards made by arbitrators appointed for each case but also those made by permanent arbitral bodies to which the parties have submitted.
2. When signing, ratifying or acceding to this Convention, or notifying extension under article X hereof, any State may on the basis

reciprocity declare that it will apply the Convention to the recognition and enforcement

awards made only in the territory

another Contracting State. It may also declare that it will apply the Convention only to differences arising out

legal relationships, whether contractual or not, which are considered as commercial under the national law

the State making such declaration. Article II 1. Each Contracting State shall recognise an agreement in writing under which the parties undertake to submit to arbitration all or any differences which have arisen or which may arise between them in respect

a defined legal relationship, whether contractual or not, concerning a subject matter capable

settlement by arbitration. 2. The term “agreement in writing” shall include an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange

letters or telegrams. 3. The court

a Contracting State, when seized

an action in a matter in respect

which the parties have made an agreement within the meaning

this article, shall, at the request

one

the parties, refer the parties to arbitration, unless it finds that the said agreement is null and void, inoperative or incapable

being performed. Article III Each Contracting State shall recognise arbitral awards as binding and enforce them in accordance with the rules

procedure

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 or enforcement

arbitral awards to which this Convention applies than are imposed on the recognition or enforcement

domestic arbitral awards. Article IV 1. To obtain the recognition and enforcement mentioned in the preceding article, the party applying for recognition and enforcement shall, at the time

the application, supply: (

1. a)The duly authenticated original award or a duly certified copy thereof; (
2. 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

ficial language

the country in which the award is relied upon, the party applying for recognition and enforcement

the award shall produce a translation

these documents into such language. The translation shall be certified by an

ficial or sworn translator or by a diplomatic or consular agent. Article V 1. Recognition and enforcement

the award may be refused, at the request

the party against whom it is invoked, only if that party furnishes to the competent authority where the recognition and enforcement is sought, proof that: (a) The parties to the agreement referred to in article II were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law

the country where the award was made; or (b) The party against whom the award is invoked was not given proper notice

the appointment

the arbitrator or

the arbitration proceedings or was otherwise unable to present his case; or (c) The award deals with a difference not contemplated by or not falling within the terms

the submission to arbitration, or it contains decisions on matters beyond the scope

the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part

the award which contains decisions on matters submitted to arbitration may be recognised and enforced; or (d) The composition

the arbitral authority or the arbitral procedure was not in accordance with the agreement

the parties, or, failing such agreement, was not in accordance with the law

the country where the arbitration took place; or (e) The award has not yet become binding on the parties, or has been set aside or suspended by a competent authority

the country in which, or under the law

which, that award was made. 2. Recognition and enforcement

an arbitral award may also be refused if the competent authority in the country where recognition and enforcement is sought finds that: (a) The subject matter

the difference is not capable

settlement by arbitration under the law

that country; or (b) The recognition or enforcement

the award would be contrary to the public policy

that country. Article VI If an application for the setting aside or suspension

the award has been made to a competent authority referred to in article V

the award and may also, on the application

the party claiming enforcement

the award, order the other party to give suitable security. Article VII 1. The provisions

the present Convention shall not affect the validity

multilateral or bilateral agreements concerning the recognition and enforcement

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

any right he may have to avail himself

an arbitral award in the manner and to the extent allowed by the law or the treaties

the country where such award is sought to be relied upon. 2. The Geneva Protocol on Arbitration Clauses

1923 and the Geneva Convention on the Execution

Foreign Arbitral Awards

1927 shall cease to have effect between Contracting States on their becoming bound and to the extent that they become bound, by this Convention. Article VIII 1. This Convention shall be open until 31 December 1958 for signature on behalf

any Member

the United Nations and also on behalf

any other State which is or hereafter becomes a member

any specialised agency

the United Nations, or which is or hereafter becomes a party to the Statute

the International Court

Justice, or any other State to which an invitation has been addressed by the General Assembly

the United Nations. 2. This Convention shall be ratified and the instrument

ratification shall be deposited with the Secretary-General

the United Nations. Article IX

1. This Convention shall be open for accession to all States referred to in article VIII.
2. Accession shall be effected by the deposit

an instrument

accession with the Secretary-General

the United Nations. Article X 1. Any State may, at the time

signature, ratification or accession, declare that this Convention shall extend to all or any

the territories for the international relations

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 addressed to the Secretary-General

the United Nations and shall take effect as from the ninetieth day after the day

receipt by the Secretary-General

the United Nations

this notification, or as from the date

entry into force

the Convention for the State concerned, whichever is the later. 3. With respect to those territories to which this Convention is not extended at the time

signature, ratification or accession, each State concerned shall consider the possibility

taking the necessary steps in order to extend the application

this Convention to such territories, subject, where necessary for constitutional reasons, to the consent

the Governments

such territories. Article XI In the case

a federal or non-unitary State, the following provisions shall apply: (a) With respect to those articles

this Convention that come within the legislative jurisdiction

the federal authority, the obligations

the federal Government shall to this extent be the same as those

Contracting States which are not federal States; (b) With respect to those articles

this Convention that come within the legislative jurisdiction

constituent states or provinces which are not, under the constitutional system

the federation, bound to take legislative action, the federal Government shall bring such articles with a favourable recommendation to the notice

the appropriate authorities

constituent states or provinces at the earliest possible moment; (c) A federal State Party to this Convention shall, at the request

any other Contracting State transmitted through the Secretary-General

the United Nations, supply a statement

the law and practice

the federation and its constituent units in regard to any particular provision

this Convention, showing the extent to which effect has been given to that provision by legislative or other action. Article XII 1. This Convention shall come into force on the ninetieth day following the date

deposit

the third instrument

ratification or accession. 2. For each State ratifying or acceding to this Convention after the deposit

the third instrument

ratification or accession, this Convention shall enter into force on the ninetieth day after deposit by such State

its instrument

ratification or accession. Article XIII 1. Any Contracting State may denounce this Convention by a written notification to the Secretary-General

the United Nations. Denunciation shall take effect one year after the date

receipt

the notification by the Secretary-General. 2. Any State which has made a declaration or notification under article X may, at any time thereafter, by notification to the Secretary-General

the United Nations, declare that this Convention shall cease to extend to the territory concerned one year after the date

the receipt

the notification by the Secretary-General. 3. This Convention shall continue to be applicable to arbitral awards in respect

which recognition or enforcement proceedings have been instituted before the denunciation takes effect. Article XIV A Contracting State shall not be entitled to avail itself

the present Convention against other Contracting States except to the extent that it is itself bound to apply the Convention. Article XV The Secretary-General

the United Nations shall notify the States contemplated in article VIII

the following: (

1. a)Signatures and ratifications in accordance with article VIII; (
2. b)Accessions in accordance with article IX; (
3. c)Declarations and notifications under articles I, X and XI; (
4. d)The date upon which this Convention enters into force in accordance with article XII; (
5. e)Denunciations and notifications in accordance with article XIII. Article XVI 1. This Convention,

which the Chinese, English, French, Russian and Spanish texts shall be equally authentic, shall be deposited in the archives

the United Nations. 2. The Secretary-General

the United Nations shall transmit a certified copy

this Convention to the States contemplated in article VIII. SCHEDULE 3 TEXT

1965 CONVENTION ON THE SETTLEMENT

INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS

OTHER STATES PREAMBLE The Contracting States Considering the need for international cooperation for economic development, and the role

private international investment therein; Bearing in mind the possibility that from time to time disputes may arise in connection with such investment between Contracting States and nationals

other Contracting States; Recognising that while such disputes would usually be subject to national legal processes, international methods

settlement may be appropriate in certain cases; Attaching particular importance to the availability

facilities for international conciliation or arbitration to which Contracting States and nationals

other Contracting States may submit such disputes if they so desire; Desiring to establish such facilities under the auspices

the International Bank for Reconstruction and Development; Recognising that mutual consent by the parties to submit such disputes to conciliation or to arbitration through such facilities constitutes a binding agreement which requires in particular that due consideration be given to any recommendation

conciliators, and that any arbitral award be complied with; and Declaring that no Contracting State shall by the mere fact

its ratification, acceptance or approval

this Convention and without its consent be deemed to be under any obligation to submit any particular dispute to conciliation or arbitration, Have agreed as follows: CHAPTER I INTERNATIONAL CENTRE FOR SETTLEMENT

INVESTMENT DISPUTES SECTION 1 Establishment and Organisation Article 1

Investment Disputes (hereinafter called the Centre).

the Centre shall be to provide facilities for conciliation and arbitration

investment disputes between Contracting States and nationals

other Contracting States in accordance with the provisions

this Convention. Article 2 The seat

the Centre shall be at the principal

fice

the International Bank for Reconstruction and Development (hereinafter called the Bank). The seat may be moved to another place by decision

the Administrative Council adopted by a majority

two-thirds

its members. Article 3 The Centre shall have an Administrative Council and a Secretariat and shall maintain a Panel

Conciliators and a Panel

Arbitrators. SECTION 2 The Administrative Council Article 4

one representative

each Contracting State. An alternate may act as representative in case

his principal's absence from a meeting or inability to act.

a contrary designation, each governor and alternate governor

the Bank appointed by a Contracting State shall be ex

ficio its representative and its alternate respectively. Article 5 The President

the Bank shall be ex

ficio Chairman

the Administrative Council (hereinafter called the Chairman) but shall have no vote. During his absence or inability to act and during any vacancy in the

fice

President

the Bank, the person for the time being acting as President shall act as Chairman

the Administrative Council. Article 6

this Convention, the Administrative Council shall (a) adopt the administrative and financial regulations

the Centre; (b) adopt the rules

procedure for the institution

conciliation and arbitration proceedings; (c) adopt the rules

procedure for conciliation and arbitration proceedings (hereinafter called the Conciliation Rules and the Arbitration Rules); (d) approve arrangements with the Bank for the use

the Bank's administrative facilities and services; (e) determine the conditions

service

the Secretary-General and

any Deputy Secretary-General; (f) adopt the annual budget

revenues and expenditures

the Centre; (g) approve the annual report on the operation

the Centre. The decisions referred to in sub-paragraphs (a), (b), (

1. c)and (
2. f)above shall be adopted by a majority

two-thirds

the members

the Administrative Council.

the provisions

this Convention. Article 7

not less than five members

the Council.

the Administrative Council shall have one vote and, except as otherwise herein provided, all matters before the Council shall be decided by a majority

the votes cast.

the Administrative Council shall be a majority

its members.

two-thirds

its members, a procedure whereby the Chairman may seek a vote

the Council without convening a meeting

the Council. The vote shall be considered valid only if the majority

the members

the Council cast their votes within the time limit fixed by the said procedure. Article 8 Members

the Administrative Council and the Chairman shall serve without remuneration from the Centre. SECTION 3 The Secretariat Article 9 The Secretariat shall consist

a Secretary-General, one or more Deputy Secretaries-General and staff. Article 10

two-thirds

its members upon the nomination

the Chairman for a term

service not exceeding six years and shall be eligible for re-election. After consulting the members

the Administrative Council, the Chairman shall propose one or more candidates for each such

fice.

fices

Secretary-General and Deputy Secretary-General shall be incompatible with the exercise

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

the Administrative Council.

the

fice

Secretary-General, the Deputy Secretary-General shall act as Secretary-General. If there shall be more than one Deputy Secretary-General, the Administrative Council shall determine in advance the order in which they shall act as Secretary-General. Article 11 The Secretary-General shall be the legal representative and the principal

ficer

the Centre and shall be responsible for its administration, including the appointment

staff, in accordance with the provisions

this Convention and the rules adopted by the Administrative Council. He shall perform the function

registrar and shall have the power to authenticate arbitral awards rendered pursuant to this Convention, and to certify copies thereof. SECTION 4 The Panels Article 12 The Panel

Conciliators and the Panel

Arbitrators shall each consist

qualified persons, designated as hereinafter provided, who are willing to serve thereon. Article 13

high moral character and recognised competence in the fields

law, commerce, industry or finance, who may be relied upon to exercise independent judgment. Competence in the field

law shall be

particular importance in the case

persons on the Panel

Arbitrators.

assuring representation on the Panels

the principal legal systems

the world and

the main forms

economic activity. Article 15

six years.

death or resignation

a member

a Panel, the authority which designated the member shall have the right to designate another person to serve for the remainder

that member's term.

fice until their successors have been designated. Article 16

which he is a national, by that State.

the Centre cannot be met out

charges for the use

its facilities, or out

other receipts, the excess shall be borne by Contracting States which are members

the Bank in proportion to their respective subscriptions to the capital stock

the Bank, and by Contracting States which are not members

the Bank in accordance with rules adopted by the Administrative Council. SECTION 6 Status, Immunities and Privileges Article 18 The Centre shall have full international legal personality. The legal capacity

the Centre shall include the capacity (

1. a)to contract; (
2. b)to acquire and dispose

movable and immovable property; (c) to institute legal proceedings. Article 19 To enable the Centre to fulfil its functions, it shall enjoy in the territories

each Contracting State the immunities and privileges set forth 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. Article 21 The Chairman, the members

the Administrative Council, persons acting as conciliators or arbitrators or members

a Committee appointed pursuant to paragraph

Article 52

, and the

ficers and employees

the Secretariat (a) shall enjoy immunity from legal process with respect to acts performed by them in the exercise

their functions, except when the Centre waives this immunity; (b) not being local nationals, shall enjoy the same immunities from immigration restrictions, alien registration requirements and national service obligations, the same facilities as regards exchange restrictions and the same treatment in respect

travelling facilities as are accorded by Contracting States to the representatives,

ficials and employees

comparable rank

other Contracting States. Article 22 The provisions

Article 21

shall apply to persons appearing in proceedings under this Convention as parties, 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 where the proceedings are held. Article 23

the Centre shall be inviolable, wherever they may be.

ficial communications, the Centre shall be accorded by each Contracting State treatment not less favourable than that accorded to other international organisations. Article 24

any taxes or customs duties.

local nationals, no tax shall be levied on or in respect

expense allowances paid by the Centre to the Chairman or members

the Administrative Council, or on or in respect

salaries, expense allowances or other emoluments paid by the Centre to

ficials or employees

the Secretariat.

fees or expense allowances received by persons acting as conciliators, or arbitrators, or members

a Committee appointed pursuant to paragraph

Article 52

, in proceedings under this Convention, if the sole jurisdictional basis for such tax is the location

the Centre or the place where such proceedings are conducted or the place where such fees or allowances are paid. CHAPTER II JURISDICTION

THE CENTRE Article 25

the Centre shall extend to any legal dispute arising directly out

an investment, between a Contracting State (or any constituent subdivision or agency

a Contracting State designated to the Centre by that State) and a national

another Contracting State, which the parties to the dispute consent in writing to submit to the Centre. When the parties have given their consent, no party may withdraw its consent unilaterally.

another Contracting State” means:— (a) any natural person who had the nationality

a Contracting State other than the State party to the dispute on the date on which the parties consented to submit such dispute to conciliation or arbitration as well as on the date on which the request was registered pursuant to paragraph

Article 28or paragraph

Article 36

, but does not include any person who on either date also had the nationality

the Contracting State party to the dispute; and (b) any juridical person which had the nationality

a Contracting State other than the State party to the dispute on the date on which the parties consented to submit such dispute to conciliation or arbitration and any juridical person which had the nationality

the Contracting State party to the dispute on that date and which, because

foreign control, the parties have agreed should be treated as a national

another Contracting State for the purposes

this Convention.

a Contracting State shall require the approval

that State unless that State notifies the Centre that no such approval is required.

ratification, acceptance or approval

this Convention or at any time thereafter, notify the Centre

the class or classes

disputes which it would or would not consider submitting to the jurisdiction

the Centre. The Secretary-General shall forthwith transmit such notification to all Contracting States. Such notification shall not constitute the consent required by paragraph

the parties to arbitration under this Convention shall, unless otherwise stated, be deemed consent to such arbitration to the exclusion

any other remedy. A Contracting State may require the exhaustion

local administrative or judicial remedies as a condition

its consent to arbitration under this Convention. Article 27

a dispute which one

its nationals and another Contracting State shall have consented to submit or shall have submitted to arbitration under this Convention, unless such other Contracting State shall have failed to abide by and comply with the award rendered in such dispute.

paragraph

facilitating a settlement

the dispute. CHAPTER III CONCILIATION SECTION 1 Request for Conciliation Article 28

a Contracting State wishing to institute conciliation proceedings shall address a request to that effect in writing to the Secretary-General who shall send a copy

the request to the other party.

the parties and their consent to conciliation in accordance with the rules

procedure for the institution

conciliation and arbitration proceedings.

the information contained in the request, that the dispute is manifestly outside the jurisdiction

the Centre. He shall forthwith notify the parties

registration or refusal to register. SECTION 2 Constitution

the Conciliation Commission Article 29

a request pursuant to Article 28.

a sole conciliator or any uneven number

conciliators appointed as the parties shall agree. (b) Where the parties do not agree upon the number

conciliators and the method

their appointment, the Commission shall consist

three conciliators, one conciliator appointed by each party and the third, who shall be the president

the Commission, appointed by agreement

the parties. Article 30 If the Commission shall not have been constituted within 90 days after notice

registration

the request has been dispatched by the Secretary-General in accordance with paragraph

Article 28

, or such other period as the parties may agree, the Chairman shall, at the request

either party and after consulting both parties as far as possible, appoint the conciliator or conciliators not yet appointed. Article 31

Conciliators, except in the case

appointments by the Chairman pursuant to Article 30.

Conciliators shall possess the qualities stated in paragraph

Article 14. SECTION 3 Conciliation Proceedings Article 32

its own competence.

the Centre, or for other reasons is not within the competence

the Commission, shall be considered by the Commission which shall determine whether to deal with it as a preliminary question or to join it to the merits

the dispute. Article 33 Any conciliation proceeding shall be conducted in accordance with the provisions

this Section and, except as the parties otherwise agree, in accordance with the Conciliation Rules in effect on the date on which the parties consented to conciliation. If any question

procedure arises which is not covered by this Section or the Conciliation Rules or any rules agreed by the parties, the Commission shall decide the question. Article 34

the Commission to clarify the issues in dispute between the parties and to endeavour to bring about agreement between them upon mutually acceptable terms. To that end, the Commission may at any stage

the proceedings and from time to time recommend terms

settlement to the parties. The parties shall cooperate in good faith with the Commission in order to enable the Commission to carry out its functions, and shall give their most serious consideration to its recommendations.

the proceedings, it appears to the Commission that there is no likelihood

agreement between the parties, it shall close the proceedings and shall draw up a report noting the submission

the dispute and recording the failure

the parties to reach agreement. If one party fails to appear or participate in the proceedings, the Commission shall close the proceedings and shall draw up a report noting that party's failure to appear or participate. Article 35 Except as the parties to the dispute shall otherwise agree, neither party to a conciliation proceeding shall be entitled in any other proceeding, whether before arbitrators or in a court

law or otherwise, to invoke or rely on any views expressed or statements or admissions or

fers

settlement made by the other party in the conciliation proceedings, or the report or any recommendations made by the Commission. CHAPTER IV ARBITRATION SECTION 1 Request for Arbitration Article 36

a Contracting State wishing to institute arbitration proceedings shall address a request to that effect in writing to the Secretary-General who shall send a copy

the request to the other party.

the parties and their consent to arbitration in accordance with the rules

procedure for the institution

conciliation and arbitration proceedings.

the information contained in the request, that the dispute is manifestly outside the jurisdiction

the Centre. He shall forthwith notify the parties

registration or refusal to register. SECTION 2 Constitution

the Tribunal Article 37

a request pursuant to Article 36.

a sole arbitrator or any uneven number

arbitrators appointed as the parties shall agree. (b) Where the parties do not agree upon the number

arbitrators and the method

their appointment, the Tribunal shall consist

three arbitrators, one arbitrator appointed by each party and the third, who shall be the president

the Tribunal, appointed by agreement

the parties. Article 38 If the Tribunal shall not have been constituted within 90 days after notice

registration

the request has been despatched by the Secretary-General in accordance with paragraph

Article 36

, or such other period as the parties may agree, the Chairman shall, at the request

either party and after consulting both parties as far as possible, appoint the arbitrator or arbitrators not yet appointed. Arbitrators appointed by the Chairman pursuant to this Article shall not be nationals

the Contracting State party to the dispute or

the Contracting State whose national is a party to the dispute. Article 39 The majority

the arbitrators shall be nationals

States other than the Contracting State party to the dispute and the Contracting State whose national is a party to the dispute; provided, however, that the foregoing provisions

this Article shall not apply if the sole arbitrator or each individual member

the Tribunal has been appointed by agreement

the parties. Article 40

Arbitrators, except in the case

appointments by the Chairman pursuant to Article 38.

Arbitrators shall possess the qualities stated in paragraph

Article 14

. SECTION 3 Powers and Functions

the Tribunal Article 41

its own competence.

the Centre, or for other reasons is not within the competence

the Tribunal, shall be considered by the Tribunal which shall determine whether to deal with it as a preliminary question or to join it to the merits

the dispute. Article 42

law as may be agreed by the parties. In the absence

such agreement, the Tribunal shall apply the law

the Contracting State party to the dispute (including its rules on the conflict

laws) and such rules

international law as may be applicable.

non liquet on the ground

silence or obscurity

the law.

paragraphs

the Tribunal to decide a dispute ex aequo et bono if the parties so agree. Article 43 Except as the parties otherwise agree, the Tribunal may, if it deems it necessary at any stage

the proceedings, (

1. a)call upon the parties to produce documents or other evidence, and (
2. b)visit the scene connected with the dispute, and conduct such inquiries there as it may deem appropriate. Article 44 Any arbitration proceeding shall be conducted in accordance with the provisions

this Section and, except as the parties otherwise agree, in accordance with the Arbitration Rules in effect on the date on which the parties consented to arbitration. If any question

procedure arises which is not covered by this Section or the Arbitration Rules or any rules agreed by the parties, the Tribunal shall decide the question. Article 45

a party to appear or to present his case shall not be deemed an admission

the other party's assertions.

the proceedings the other party may request the Tribunal to deal with the questions submitted to it and to render an award. Before rendering an award, the Tribunal shall notify, and grant a period

grace to, the party failing to appear or to present its case, unless it is satisfied that that party does not intend to do so. Article 46 Except as the parties otherwise agree, the Tribunal shall, if requested by a party, determine any incidental or additional claims or counter-claims arising directly out

the subject-matter

the dispute provided that they are within the scope

the consent

the parties and are otherwise within the jurisdiction

the Centre. Article 47 Except as the parties otherwise agree, the Tribunal may, if it considers that the circumstances so require, recommend any provisional measures which should be taken to preserve the respective rights

either party. SECTION 4 The Award Article 48

the votes

all its members.

the Tribunal shall be in writing and shall be signed by the members

the Tribunal who voted for it.

the Tribunal may attach his individual opinion to the award, whether he dissents from the majority or not, or a statement

his dissent.

the parties. Article 49

the award to the parties. The award shall be deemed to have been rendered on the date on which the certified copies were dispatched.

a party made within 45 days after the date on which the award was rendered may after notice to the other party decide any question which it had omitted to decide in the award, and shall rectify any clerical, arithmetical or similar error in the award. Its decision shall become part

the award and shall be notified to the parties in the same manner as the award. The periods

time provided for under paragraph

Article 51and paragraph

Article 52shall run from the date on which the decision was rendered.

SECTION 5 Interpretation, Revision and Annulment

the Award Article 50

an award, either party may request interpretation

the award by an application in writing addressed to the Secretary-General.

this Chapter. The Tribunal may, if it considers that the circumstances so require, stay enforcement

the award pending its decision. Article 51

the award by an application in writing addressed to the Secretary-General on the ground

discovery

some fact

such a nature as decisively to affect 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

that fact was not due to negligence.

such fact and in any event within three years after the date on which the award was rendered.

this Chapter.

the award pending its decision. If the applicant requests a stay

enforcement

the award in his application, enforcement shall be stayed provisionally until the Tribunal rules on such request. Article 52

the award by an application in writing addressed to the Secretary-General on one or more

the following grounds: (

1. a)that the Tribunal was not properly constituted; (
2. b)that the Tribunal has manifestly exceeded its powers; (
3. c)that there was corruption on the part

a member

the Tribunal; (d) that there has been a serious departure from a fundamental rule

procedure; or (e) that the award has failed to state the reasons on which it is based.

corruption such application shall be made within 120 days after discovery

the corruption and in any event within three years after the date on which the award was rendered.

the request the Chairman shall forthwith appoint from the Panel

Arbitrators an ad hoc Committee

three persons. None

the members

the Committee shall have been a member

the Tribunal which rendered the award, shall be

the same nationality as any such member, shall be a national

the State party to the dispute or

the State whose national is a party to the dispute, shall have been designated to the Panel

Arbitrators by either

those States, or shall have acted as a conciliator in the same dispute. The Committee shall have the authority to annul the award or any part thereof on any

the grounds set forth in paragraph

Articles 41-45, 48, 49, 53 and 54, and

Chapters VI and VII shall apply mutatis mutandis to proceedings before the Committee.

the award pending its decision. If the applicant requests a stay

enforcement

the award in his application, enforcement shall be stayed provisionally until the Committee rules on such request.

either party, be submitted to a new Tribunal constituted in accordance with Section 2

this Chapter. SECTION 6 Recognition and Enforcement

the Award Article 53

the award except to the extent that enforcement shall have been stayed pursuant to the relevant provisions

this Convention.

this Section, “award” shall include any decision interpreting, revising or annulling such award pursuant to Articles 50, 51 or 52. Article 54

a court in that State. A Contracting State with a federal constitution may enforce such an award in or through its federal courts and may provide that such courts shall treat the award as if it were a final judgement

the courts

a constituent state.

a Contracting State shall furnish to a competent court or other authority which such State shall have designated for this purpose a copy

the award certified by the Secretary-General. Each Contracting State shall notify the Secretary-General

the designation

the competent court or other authority for this purpose and

any subsequent change in such designation.

the award shall be governed by the laws concerning the execution

judgements in force in the State in whose territories such execution is sought. Article 55 Nothing in Article 54 shall be construed as derogating from the law in force in any Contracting State relating to immunity

that State or

any foreign State from execution. CHAPTER V REPLACEMENT AND DISQUALIFICATION

CONCILIATORS AND ARBITRATORS Article 56

Section 2

Chapter III

or Section 2

Chapter IV

a Commission or Tribunal shall continue to serve in that capacity notwithstanding that he shall have ceased to be a member

the Panel.

the Commission or Tribunal

which he was a member, the Chairman shall appoint a person from the appropriate Panel to fill the resulting vacancy. Article 57 A party may propose to a Commission or Tribunal the disqualification

any

its members on account

any fact indicating a manifest lack

the qualities required by paragraph

Article 14

. A party to arbitration proceedings may, in addition, propose the disqualification

an arbitrator on the ground that he was ineligible for appointment to the Tribunal under Section 2

Chapter IV

. Article 58 The decision on any proposal to disqualify a conciliator or arbitrator shall be taken by the other members

the Commission or Tribunal as the case may be, provided that where those members are equally divided, or in the case