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Third
Session, 45th General Assembly 55
Elizabeth II, 2006 |
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AN ACT RESPECTING THE
CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES |
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Received and Read the First Time................................................................................................... |
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Second |
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Committee............................................................................................................................................ |
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Third |
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Royal Assent...................................................................................................................................... |
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HONOURABLE
Minister
of Justice and Attorney General |
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Ordered
to be printed by the Honourable House of Assembly |
EXPLANATORY NOTES This Bill would approve the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. This international convention establishes a fair and impartial arbitration process to quickly resolve investment disputes between contracting states and foreign nationals who invest in those states. The Convention would apply in the
province on the day on which it enters into force for |
A AN ACT RESPECTING THE CONVENTION ON THE
SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES Analysis 1. Short title 2. Interpretation 3. Purpose of Act 4. Scope of Act 5. Crown bound 6. Enforceability of awards 7. Enforceability against Crown 8. Remedies 9. Stay of enforcement proceedings 10. Interim measures 11. Conciliation 12. Regulations 13. Application of Convention Schedule Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Settlement of International Investment Disputes Act. Interpretation 2. (1) In this Act (a) "award" means an award rendered by the Arbitral Tribunal, established by Article 37 of the Convention, and includes an interpretation, revision or annulment of the award under the Convention; and (b) "Convention" means the Convention on
the Settlement of Investment Disputes between States and Nationals of other
States, opened for signature in (2) Unless the context otherwise requires, all words and expressions used in this Act have the same meaning as in the Convention. (3) In the event of an inconsistency between this Act and another Act, this Act shall prevail to the extent of the inconsistency. Purpose of Act 3. The purpose of this Act is to implement the provisions of the Convention concerning the jurisdiction and powers of the Trial Division with respect to the recognition and enforcement of awards. Scope of Act 4. This Act applies with respect to agreements recording consent to arbitration or conciliation proceedings entered into under the Convention, and awards rendered, including those entered into or rendered before the coming into force of this Act. Crown bound 5. This Act binds the Crown, other than a Crown corporation of the province. Enforceability of awards 6. Where a certified copy of an award is produced to the Trial Division, it shall be registered in that court, and when registered it has the same effect and all proceedings may be taken to enforce it as if it were a final judgment obtained in that court. Enforceability against Crown 7. An award is enforceable against the Crown in the same manner and to the same extent as a judgment is enforceable against the Crown. Remedies 8. An award is final and binding and is not subject to appeal, review, setting aside or other remedy except as provided in the Convention. Stay of enforcement proceedings 9. Where enforcement of an award is stayed under the Convention, the Trial Division, on the application of a party to arbitration proceedings, shall stay proceedings in relation to the enforcement of the award. Interim measures 10. Unless the parties have so stipulated in their agreement recording their consent to arbitration proceedings, a party may not request a court or an administrative tribunal to order interim measures before the institution of the proceedings or during the proceedings, for the preservation of the party's rights and interests. Conciliation 11. Except as the parties may otherwise agree, a party to conciliation proceedings shall not, in another proceedings, whether before a court of law, an administrative tribunal or arbitrators or otherwise, use (a) views expressed or statements, admissions or offers of settlement made by the other party in the conciliation proceedings; or (b) the report or recommendations made by the Conciliation Commission. Regulations 12. The Lieutenant-Governor in Council may make regulations (a) prescribing the terms and conditions under which the Crown may enter into an agreement recording consent to arbitration proceedings under the Convention; (b) exempting a person or class of persons from the application of an enactment or a provision of it, on those conditions that may be specified in the regulations, to permit them to act in a professional capacity in an arbitration or conciliation proceeding; and (c) generally, to give effect to the purpose of this Act. Application of Convention 13. (1) The Convention applies in the province on the day on which it enters into force for Canada in accordance with paragraph 2 of Article 68 of the Convention. (2) The Lieutenant-Governor in Council shall publish in Part I of the Gazette a notice setting out the date on which the Convention comes into force. Schedule CONVENTION ON THE SETTLEMENT OF
INVESTMENT DISPUTES BETWEEN STATES PREAMBLE The
Contracting States Considering the need for international cooperation for
economic development, and the role of private international investment therein; Bearing
in mind the possibility
that from time to time disputes may arise in connection with such investment
between Recognizing
that while such disputes
would usually be subject to national legal processes, international methods of
settlement may be appropriate in certain cases; Attaching
particular importance to
the availability of facilities for international conciliation or arbitration to
which Contracting States and nationals of other Contracting States may submit
such disputes if they so desire; Desiring to establish such facilities under the
auspices of the International Bank for Reconstruction and Development; Recognizing
that mutual consent by the
parties to submit such disputes to conciliation or to arbitration through such
facilities constitutes a binding agreement which requires in particular that
due consideration be given to any recommendation of conciliators, and that any
arbitral award be complied with; and Declaring
that no Have
agreed as follows: Chapter I International
Centre for Settlement of Investment Disputes Section 1 Establishment and
Organization Article 1 (1) There is hereby
established the International Centre for Settlement of Investment Disputes
(hereinafter called the Centre). (2) The purpose of
the Centre shall be to provide facilities for conciliation and arbitration of
investment disputes between Article 2 The seat of the
Centre shall be at the principal office of the International Bank for
Reconstruction and Development (hereinafter called the Bank). The seat may be
moved to another place by decision of the Administrative Council adopted by a
majority of two-thirds of its members. Article 3 The Centre shall
have an Administrative Council and a Secretariat and shall maintain a Panel of
Conciliators and a Panel of Arbitrators. Section 2 The Administrative
Council Article 4 (1) The
Administrative Council shall be composed of one representative of each (2) In the absence
of a contrary designation, each governor and alternate governor of the Bank
appointed by a Article 5 The President of
the Bank shall be ex officio Chairman of the Administrative Council
(hereinafter called the Chairman) but shall have no vote. During his absence or
inability to act and during any vacancy in the office of President of the Bank,
the person for the time being acting as President shall act as Chairman of the
Administrative Council. Article 6 (1) Without
prejudice to the powers and functions vested in it by other provisions of this
Convention, the Administrative Council shall: (a) adopt the
administrative and financial regulations of the Centre; (b) adopt the rules
of procedure for the institution of conciliation and arbitration proceedings; (c) adopt the rules
of procedure for conciliation and arbitration proceedings (hereinafter called
the Conciliation Rules and the Arbitration Rules); (d) approve
arrangements with the Bank for the use of the Bank's administrative facilities
and services; (e) determine the
conditions of service of the Secretary-General and of any Deputy
Secretary-General; (f) adopt the
annual budget of revenues and expenditures of the Centre; (g) approve the
annual report on the operation of the Centre. The decisions
referred to in sub-paragraphs (a), (b), (c) and (f) above shall be adopted by a
majority of two-thirds of the members of the Administrative Council. (2) The
Administrative Council may appoint such committees as it considers necessary. (3) The
Administrative Council shall also exercise such other powers and perform such other
functions as it shall determine to be necessary for the implementation of the
provisions of this Convention. Article 7 (1) The
Administrative Council shall hold an annual meeting and such other meetings as
may be determined by the Council, or convened by the Chairman, or convened by
the Secretary-General at the request of not less than five members of the
Council. (2) Each member of
the Administrative Council shall have one vote and, except as otherwise herein
provided, all matters before the Council shall be decided by a majority of the
votes cast. (3) A quorum for
any meeting of the Administrative Council shall be a majority of its members. (4) The
Administrative Council may establish, by a majority of two-thirds of its
members, a procedure whereby the Chairman may seek a vote of the Council
without convening a meeting of the Council. The vote shall be considered valid
only if the majority of the members of the Council cast their votes within the
time limit fixed by the said procedure. Article 8 Members of the
Administrative Council and the Chairman shall serve without remuneration from
the Centre. Section 3 The Secretariat Article 9 The Secretariat
shall consist of a Secretary-General, one or more Deputy Secretaries-General
and staff. Article 10 (1) The
Secretary-General and any Deputy Secretary-General shall be elected by the
Administrative Council by a majority of two-thirds of its members upon the
nomination of the Chairman for a term of service not exceeding six years and
shall be eligible for re-election. After consulting the members of the
Administrative Council, the Chairman shall propose one or more candidates for
each such office. (2) The offices of
Secretary-General and Deputy Secretary-General shall be incompatible with the
exercise of any political function. Neither the Secretary-General nor any
Deputy Secretary-General may hold any other employment or engage in any other
occupation except with the approval of the Administrative Council. (3) During the
Secretary-General's absence or inability to act, and during any vacancy of the
office of Secretary-General, the Deputy Secretary-General shall act as
Secretary-General. If there shall be more than one Deputy Secretary-General,
the Administrative Council shall determine in advance the order in which they
shall act as Secretary-General. Article 11 The
Secretary-General shall be the legal representative and the principal officer
of the Centre and shall be responsible for its administration, including the
appointment of staff, in accordance with the provisions of this Convention and
the rules adopted by the Administrative Council. He shall perform the function
of registrar and shall have the power to authenticate arbitral awards rendered
pursuant to this Convention, and to certify copies thereof. Section 4 The Panels Article 12 The Panel of
Conciliators and the Panel of Arbitrators shall each consist of qualified
persons, designated as hereinafter provided, who are willing to serve thereon. Article 13 (1) Each (2) The Chairman
may designate ten persons to each Panel. The persons so designated to a Panel
shall each have a different nationality. Article 14 (1) Persons
designated to serve on the Panels shall be persons of high moral character and
recognized competence in the fields of law, commerce, industry or finance, who
may be relied upon to exercise independent judgment. Competence in the field of
law shall be of particular importance in the case of persons on the Panel of
Arbitrators. (2) The Chairman,
in designating persons to serve on the Panels, shall in addition pay due regard
to the importance of assuring representation on the Panels of the principal
legal systems of the world and of the main forms of economic activity. Article 15 (1) Panel members
shall serve for renewable periods of six years. (2) In case of
death or resignation of a member of a Panel, the authority which designated the
member shall have the right to designate another person to serve for the
remainder of that member's term. (3) Panel members
shall continue in office until their successors have been designated. Article 16 (1) A person may
serve on both Panels. (2) If a person
shall have been designated to serve on the same Panel by more than one
Contracting State, or by one or more Contracting States and the Chairman, he
shall be deemed to have been designated by the authority which first designated
him or, if one such authority is the State of which he is a national, by that
State. (3) All
designations shall be notified to the Secretary-General and shall take effect
from the date on which the notification is received. Section 5 Financing the
Centre Article 17 If the expenditure
of the Centre cannot be met out of charges for the use of its facilities, or
out of other receipts, the excess shall be borne by Contracting States which
are members of the Bank in proportion to their respective subscriptions to the
capital stock of the Bank, and by Contracting States which are not members of
the Bank in accordance with rules adopted by the Administrative Council. Section 6 Status, Immunities
and Privileges Article 18 The Centre shall
have full international legal personality. The legal capacity of the Centre
shall include the capacity: (a) to contract; (b) to acquire and
dispose of movable and immovable property; (c) to institute
legal proceedings. Article 19 To enable the
Centre to fulfil its functions, it shall enjoy in the territories of each 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 of the Administrative Council, persons acting as conciliators or
arbitrators or members of a Committee appointed pursuant to paragraph (3) of
Article 52, and the officers and employees of the Secretariat (a) shall enjoy
immunity from legal process with respect to acts performed by them in the
exercise of their functions, except when the Centre waives this immunity; (b) not being local
nationals, shall enjoy the same immunities from immigration restrictions, alien
registration requirements and national service obligations, the same facilities
as regards exchange restrictions and the same treatment in respect of
travelling facilities as are accorded by Contracting States to the
representatives, officials and employees of comparable rank of other Contracting
States. Article 22 The provisions of
Article 21 shall apply to persons appearing in proceedings under this
Convention as parties, agents, counsel, advocates, witnesses or experts;
provided, however, that 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 (l) The archives of
the Centre shall be inviolable, wherever they may be. (2) With regard to its
official communications, the Centre shall be accorded by each Article 24 (1) The Centre, its
assets, property and income, and its operations and transactions authorized by
this Convention shall be exempt from all taxation and customs duties. The
Centre shall also be exempt from liability for the collection or payment of any
taxes or customs duties. (2) Except in the
case of local nationals, no tax shall be levied on or in respect of expense
allowances paid by the Centre to the Chairman or members of the Administrative
Council, or on or in respect of salaries, expense allowances or other
emoluments paid by the Centre to officials or employees of the Secretariat. (3) No tax shall be
levied on or in respect of fees or expense allowances received by persons
acting as conciliators, or arbitrators, or members of a Committee appointed
pursuant to paragraph (3) of Article 52, in proceedings under this Convention,
if the sole jurisdictional basis for such tax is the location of the Centre or
the place where such proceedings are conducted or the place where such fees or
allowances are paid. Chapter II Jurisdiction of the
Centre Article 25 (1) The
jurisdiction of the Centre shall extend to any legal dispute arising directly
out of an investment, between a Contracting State (or any constituent
subdivision or agency of a Contracting State designated to the Centre by that
State) and a national of another Contracting State, which the parties to the
dispute consent in writing to submit to the Centre. When the parties have given
their consent, no party may withdraw its consent unilaterally. (2) "National
of another (a) any natural
person who had the nationality of a Contracting State other than the State
party to the dispute on the date on which the parties consented to submit such
dispute to conciliation or arbitration as well as on the date on which the
request was registered pursuant to paragraph (3) of Article 28 or paragraph (3)
of Article 36, but does not include any person who on either date also had the
nationality of the Contracting State party to the dispute; and (b) any juridical
person which had the nationality of a Contracting State other than the State
party to the dispute on the date on which the parties consented to submit such
dispute to conciliation or arbitration and any juridical person which had the
nationality of the Contracting State party to the dispute on that date and which,
because of foreign control, the parties have agreed should be treated as a
national of another Contracting State for the purposes of this Convention. (3) Consent by a
constituent subdivision or agency of a (4) Any Article 26 Consent of the
parties to arbitration under this Convention shall, unless otherwise stated, be
deemed consent to such arbitration to the exclusion of any other remedy. A Article 27 (1) No Contracting
State shall give diplomatic protection, or bring an international claim, in
respect of a dispute which one of its nationals and another Contracting State
shall have consented to submit or shall have submitted to arbitration under
this Convention, unless such other Contracting State shall have failed to abide
by and comply with the award rendered in such dispute. (2) Diplomatic
protection, for the purposes of paragraph (1), shall not include informal
diplomatic exchanges for the sole purpose of facilitating a settlement of the
dispute. Chapter Conciliation Section 1 Request for
Conciliation Article 28 (1) Any (2) The request
shall contain information concerning the issues in dispute, the identity of the
parties and their consent to conciliation in accordance with the rules of
procedure for the institution of conciliation and arbitration proceedings. (3) The
Secretary-General shall register the request unless he finds, on the basis of
the information contained in the request, that the dispute is manifestly
outside the jurisdiction of the Centre. He shall forthwith notify the parties
of registration or refusal to register. Section 2 Constitution of the
Conciliation Commission Article 29 (1) The
Conciliation Commission (hereinafter called the Commission) shall be
constituted as soon as possible after registration of a request pursuant to
Article 28. (2) (a) The
Commission shall consist of a sole conciliator or any uneven number of
conciliators appointed as the parties shall agree. Article 30 If the Commission
shall not have been constituted within 90 days after notice of registration of
the request has been dispatched by the Secretary-General in accordance with
paragraph (3) of Article 28, or such other period as the parties may agree, the
Chairman shall, at the request of either party and after consulting both
parties as far as possible, appoint the conciliator or conciliators not yet
appointed. Article 31 (1) Conciliators
may be appointed from outside the Panel of Conciliators, except in the case of
appointments by the Chairman pursuant to Article 30. (2) Conciliators
appointed from outside the Panel of Conciliators shall possess the qualities
stated in paragraph (1) of Article 14. Section 3 Conciliation
Proceedings Article 32 (1) The Commission
shall be the judge of its own competence. (2) Any objection
by a party to the dispute that that dispute is not within the jurisdiction of
the Centre, or for other reasons is not within the competence of the
Commission, shall be considered by the Commission which shall determine whether
to deal with it as a preliminary question or to join it to the merits of the
dispute. Article 33 Any conciliation
proceeding shall be conducted in accordance with the provisions of this Section
and, except as the parties otherwise agree, in accordance with the Conciliation
Rules in effect on the date on which the parties consented to conciliation. If
any question of procedure arises which is not covered by this Section or the
Conciliation Rules or any rules agreed by the parties, the Commission shall
decide the question. Article 34 (1) It shall be the
duty of the Commission to clarify the issues in dispute between the parties and
to endeavour to bring about agreement between them upon mutually acceptable
terms. To that end, the Commission may at any stage of the proceedings and from
time to time recommend terms of settlement to the parties. The parties shall
cooperate in good faith with the Commission in order to enable the Commission
to carry out its functions, and shall give their most serious consideration to
its recommendations. (2) If the parties
reach agreement, the Commission shall draw up a report noting the issues in
dispute and recording that the parties have reached agreement. If, at any stage
of the proceedings, it appears to the Commission that there is no likelihood of
agreement between the parties, it shall close the proceedings and shall draw up
a report noting the submission of the dispute and recording the failure of the
parties to reach agreement. If one party fails to appear or participate in the
proceedings, the Commission shall close the proceedings and shall draw up a
report noting that party's failure to appear or participate. Article 35 Except as the
parties to the dispute shall otherwise agree, neither party to a conciliation
proceeding shall be entitled in any other proceeding, whether before
arbitrators or in a court of law or otherwise, to invoke or rely on any views
expressed or statements or admissions or offers of settlement made by the other
party in the conciliation proceedings, or the report or any recommendations
made by the Commission. Chapter IV Arbitration Section 1 Request for
Arbitration Article 36 (1) Any (2) The request
shall contain information concerning the issues in dispute, the identity of the
parties and their consent to arbitration in accordance with the rules of
procedure for the institution of conciliation and arbitration proceedings. (3) The
Secretary-General shall register the request unless he finds, on the basis of
the information contained in the request, that the dispute is manifestly
outside the jurisdiction of the Centre. He shall forthwith notify the parties of
registration or refusal to register. Section 2 Constitution of the
Tribunal Article 37 (1) The Arbitral
Tribunal (hereinafter called the Tribunal) shall be constituted as soon as
possible after registration of a request pursuant to Article 36. (2) (a) The
Tribunal shall consist of a sole arbitrator or any uneven number of arbitrators
appointed as the parties shall agree. (b) Where the
parties do not agree upon the number of arbitrators and the method of their
appointment, the Tribunal shall consist of three arbitrators, one arbitrator
appointed by each party and the third, who shall be the president of the
Tribunal, appointed by agreement of the parties. Article 38 If the Tribunal
shall not have been constituted within 90 days after notice of registration of
the request has been dispatched by the Secretary-General in accordance with
paragraph (3) of Article 36, or such other period as the parties may agree, the
Chairman shall, at the request of either party and after consulting both
parties as far as possible, appoint the arbitrator or arbitrators not yet
appointed. Arbitrators appointed by the Chairman pursuant to this Article shall
not be nationals of the Article 39 The majority of the
arbitrators shall be nationals of States other than the Contracting State party
to the dispute and the Contracting State whose national is a party to the
dispute; provided, however, that the foregoing provisions of this Article shall
not apply if the sole arbitrator or each individual member of the Tribunal has
been appointed by agreement of the parties. Article 40 (1) Arbitrators may
be appointed from outside the Panel of Arbitrators, except in the case of
appointments by the Chairman pursuant to Article 38. (2) Arbitrators
appointed from outside the Panel of Arbitrators shall possess the qualities
stated in paragraph (1) of Article 14. Section 3 Powers and
Functions of the Tribunal Article 41 (1) The Tribunal
shall be the judge of its own competence. (2) Any objection
by a party to the dispute that that dispute is not within the jurisdiction of
the Centre, or for other reasons is not within the competence of the Tribunal,
shall be considered by the Tribunal which shall determine whether to deal with
it as a preliminary question or to join it to the merits of the dispute. Article 42 (1) The Tribunal
shall decide a dispute in accordance with such rules of law as may be agreed by
the parties. In the absence of such agreement, the Tribunal shall apply the law
of the (2) The Tribunal
may not bring in a finding of non liquet
on the ground of silence or obscurity of the law. (3) The provisions
of paragraphs (1) and (2) shall not prejudice the power of the Tribunal to
decide a dispute ex aequo et bono if
the parties so agree. Article 43 Except as the
parties otherwise agree, the Tribunal may, if it deems it necessary at any
stage of the proceedings, (a) call upon the
parties to produce documents or other evidence, and (b) visit the scene
connected with the dispute, and conduct such inquiries there as it may deem
appropriate. Article 44 Any arbitration
proceeding shall be conducted in accordance with the provisions of this Section
and, except as the parties otherwise agree, in accordance with the Arbitration
Rules in effect on the date on which the parties consented to arbitration. If
any question of procedure arises which is not covered by this Section or the
Arbitration Rules or any rules agreed by the parties, the Tribunal shall decide
the question. Article 45 (1) Failure of a party
to appear or to present his case shall not be deemed an admission of the other
party's assertions. (2) If a party
fails to appear or to present his case at any stage of the proceedings the
other party may request the Tribunal to deal with the questions submitted to it
and to render an award. Before rendering an award, the Tribunal shall notify,
and grant a period of grace to, the party failing to appear or to present its
case, unless it is satisfied that 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 counterclaims arising directly out of
the subject-matter of the dispute provided that they are within the scope of
the consent of the parties and are otherwise within the jurisdiction of the
Centre. Article 47 Except as the
parties otherwise agree, the Tribunal may, if it considers that the
circumstances so require, recommend any provisional measures which should be
taken to preserve the respective rights of either party. Section 4 The Award Article 48 (1) The Tribunal
shall decide questions by a majority of the votes of all its members. (2) The award of
the Tribunal shall be in writing and shall be signed by the members of the
Tribunal who voted for it. (3) The award shall
deal with every question submitted to the Tribunal, and shall state the reasons
upon which it is based. (4) Any member of
the Tribunal may attach his individual opinion to the award, whether he
dissents from the majority or not, or a statement of his dissent. (5) The Centre
shall not publish the award without the consent of the parties. Article 49 (1) The
Secretary-General shall promptly dispatch certified copies of the award to the
parties. The award shall be deemed to have been rendered on the date on which
the certified copies were dispatched. (2) The Tribunal
upon the request of a party made within 45 days after the date on which the
award was rendered may after notice to the other party decide any question
which it had omitted to decide in the award, and shall rectify any clerical,
arithmetical or similar error in the award. Its decision shall become part of
the award and shall be notified to the parties in the same manner as the award.
The periods of time provided for under paragraph (2) of Article 51 and
paragraph (2) of Article 52 shall run from the date on which the decision was
rendered. Section 5 Interpretation,
Revision and Annulment of the Award Article 50 (1) If any dispute
shall arise between the parties as to the meaning or scope of an award, either
party may request interpretation of the award by an application in writing
addressed to the Secretary-General. (2) The request
shall, if possible, be submitted to the Tribunal which rendered the award. If
this shall not be possible, a new Tribunal shall be constituted in accordance
with Section 2 of this Chapter. The Tribunal may, if it considers that the
circumstances so require, stay enforcement of the award pending its decision. Article 51 (1) Either party
may request revision of the award by an application in writing addressed to the
Secretary-General on the ground of discovery of some fact of such a nature as
decisively to 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 of that fact was not due to negligence. (2) The application
shall be made within 90 days after the discovery of such fact and in any event
within three years after the date on which the award was rendered. (3) The request
shall, if possible, be submitted to the Tribunal which rendered the award. If
this shall not be possible, a new Tribunal shall be constituted in accordance
with Section 2 of this Chapter. (4) The Tribunal
may, if it considers that the circumstances so require, stay enforcement of the
award pending its decision. If the applicant requests a stay of enforcement of
the award in his application, enforcement shall be stayed provisionally until
the Tribunal rules on such request. Article 52 (1) Either party
may request annulment of the award by an application in writing addressed to
the Secretary-General on one or more of the following grounds: (a) that the
Tribunal was not properly constituted; (b) that the Tribunal
has manifestly exceeded its powers; (c) that there was
corruption on the part of a member of the Tribunal; (d) that there has
been a serious departure from a fundamental rule of procedure; or (e) that the award
has failed to state the reasons on which it is based. (2) The application
shall be made within 120 days after the date on which the award was rendered
except that when annulment is requested on the ground of corruption such
application shall be made within 120 days after discovery of the corruption and
in any event within three years after the date on which the award was rendered. (3) On receipt of
the request the Chairman shall forthwith appoint from the Panel of Arbitrators
an ad hoc Committee of three persons. None of the members of the Committee
shall have been a member of the Tribunal which rendered the award, shall be of
the same nationality as any such member, shall be a national of the State party
to the dispute or of the State whose national is a party to the dispute, shall
have been designated to the Panel of Arbitrators by either of those States, or
shall have acted as a conciliator in the same dispute. The Committee shall have
the authority to annul the award or any part thereof on any of the grounds set
forth in paragraph (1). (4) The provisions
of Articles 41-45, 48, 49, 53 and 54, and of Chapters VI and (5) The Committee
may, if it considers that the circumstances so require, stay enforcement of the
award pending its decision. If the applicant requests a stay of enforcement of
the award in his application, enforcement shall be stayed provisionally until
the Committee rules on such request. (6) If the award is
annulled the dispute shall, at the request of either party, be submitted to a
new Tribunal constituted in accordance with Section 2 of this Chapter. Section 6 Recognition and
Enforcement of the Award Article 53 (1) The award shall
be binding on the parties and shall not be subject to any appeal or to any other
remedy except those provided for in this Convention. Each party shall abide by
and comply with the terms of the award except to the extent that enforcement
shall have been stayed pursuant to the relevant provisions of this Convention. (2) For the purposes
of this Section, "award" shall include any decision interpreting,
revising or annulling such award pursuant to Articles 50, 51 or 52. Article 54 (1) Each (2) A party seeking
recognition or enforcement in the territories of a (3) Execution of
the award shall be governed by the laws concerning the execution of judgments
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 Chapter V Replacement and
Disqualification of Conciliators and Arbitrators Article 56 (1) After a
Commission or a Tribunal has been constituted and proceedings have begun, its
composition shall remain unchanged; provided, however, that if a conciliator or
an arbitrator should die, become incapacitated, or resign, the resulting
vacancy shall be filled in accordance with the provisions of Section 2 of
Chapter (2) A member of a
Commission or Tribunal shall continue to serve in that capacity notwithstanding
that he shall have ceased to be a member of the Panel. (3) If a
conciliator or arbitrator appointed by a party shall have resigned without the
consent of the Commission or Tribunal of which he was a member, the Chairman
shall appoint a person from the appropriate Panel to fill the resulting
vacancy. Article 57 A party may propose
to a Commission or Tribunal the disqualification of any of its members on
account of any fact indicating a manifest lack of the qualities required by
paragraph (1) of Article 14. A party to arbitration proceedings may, in
addition, propose the disqualification of an arbitrator on the ground that he
was ineligible for appointment to the Tribunal under Section 2 of Chapter IV. Article 58 The decision on any
proposal to disqualify a conciliator or arbitrator shall be taken by the other
members of the Commission or Tribunal as the case may be, provided that where
those members are equally divided, or in the case of a proposal to disqualify a
sole conciliator or arbitrator, or a majority of the conciliators or
arbitrators, the Chairman shall take that decision. If it is decided that the
proposal is well-founded the conciliator or arbitrator to whom the decision
relates shall be replaced in accordance with the provisions of Section 2 of
Chapter Chapter VI Cost of Proceedings
Article 59 The charges payable
by the parties for the use of the facilities of the Centre shall be determined
by the Secretary-General in accordance with the regulations adopted by the
Administrative Council. Article 60 (l) Each Commission
and each Tribunal shall determine the fees and expenses of its members within
limits established from time to time by the Administrative Council and after
consultation with the Secretary-General. (2) Nothing in
paragraph (1) 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. Article 61 (l) In the case of
conciliation proceedings the fees and expenses of members of the Commission as
well as the charges for the use of the facilities of the Centre, shall be borne
equally by the parties. Each party shall bear any other expenses it incurs in
connection with the proceedings. (2) In the case of
arbitration proceedings the Tribunal shall, except as the parties otherwise
agree, assess the expenses incurred by the parties in connection with the
proceedings, and shall decide how and by whom those expenses, the fees and
expenses of the members of the Tribunal and the charges for the use of the
facilities of the Centre shall be paid. Such decision shall form part of the
award. Chapter VII Place of
Proceedings Article 62 Conciliation and
arbitration proceedings shall be held at the seat of the Centre except as
hereinafter provided. Article 63 Conciliation and
arbitration proceedings may be held, if the parties so agree, (a) at the seat of
the Permanent Court of Arbitration or of any other appropriate institution,
whether private or public, with which the Centre may make arrangements for that
purpose; or (b) at any other
place approved by the Commission or Tribunal after consultation with the
Secretary-General. Chapter VIII Disputes between
Contracting States Article 64 Any dispute arising
between Contracting States concerning the interpretation or application of this
Convention which is not settled by negotiation shall be referred to the
International Court of Justice by the application of any party to such dispute,
unless the States concerned agree to another method of settlement. Chapter IX Amendment Article 65 Any Article 66 (1) If the
Administrative Council shall so decide by a majority of two-thirds of its
members, the proposed amendment shall be circulated to all Contracting States for
ratification, acceptance or approval. Each amendment shall enter into force 30
days after dispatch by the depositary of this Convention of a notification to
Contracting States that all Contracting States have ratified, accepted or
approved the amendment. (2) No amendment
shall affect the rights and obligations under this Convention of any Chapter X Final Provisions Article 67 This Convention
shall be open for signature on behalf of States members of the Bank. It shall
also be open for signature on behalf of any other State which is a party to the
Statute of the International Court of Justice and which the Administrative
Council, by a vote of two-thirds of its members, shall have invited to sign the
Convention. Article 68 (1) This Convention
shall be subject to ratification, acceptance or approval by the signatory
States in accordance with their respective constitutional procedures. (2) This Convention
shall enter into force 30 days after the date of deposit of the twentieth
instrument of ratification, acceptance or approval. It shall enter into force
for each State which subsequently deposits its instrument of ratification,
acceptance or approval 30 days after the date of such deposit. Article 69 Each Article 70 This Convention
shall apply to all territories for whose international relations a Contracting
State is responsible, except those which are excluded by such State by written
notice to the depositary of this Convention either at the time of ratification,
acceptance or approval or subsequently. Article 71 Any Article 72 Notice by a
Contracting State pursuant to Articles 70 or 71 shall not affect the rights or
obligations under this Convention of that State or of any of its constituent
subdivisions or agencies or of any national of that State arising out of
consent to the jurisdiction of the Centre given by one of them before such
notice was received by the depositary. Article 73 Instruments of
ratification, acceptance or approval of this Convention and of amendments
thereto shall be deposited with the Bank which shall act as the depositary of
this Convention. The depositary shall transmit certified copies of this
Convention to States members of the Bank and to any other State invited to sign
the Convention. Article 74 The depositary
shall register this Convention with the Secretariat of the United Nations in
accordance with Article 102 of the Charter of the United Nations and the
Regulations thereunder adopted by the General Assembly. Article 75 The depositary
shall notify all signatory States of the following: (a) signatures in
accordance with Article 67; (b) deposits of
instruments of ratification, acceptance and approval in accordance with Article
73; (c) the date on
which this Convention enters into force in accordance with Article 68; (d) exclusions from
territorial application pursuant to Article 70; (e) the date on
which any amendment of this Convention enters into force in accordance with
Article 66; and (f) denunciations in
accordance with Article 71. DONE at ŠEarl G. Tucker, Queen's Printer |