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ARBITRATION (INTERNATIONAL INVESTMENT DISPUTES) ACT, 1966
41 of 1966
13th December 1966
SECTION 01: REGISTRATION OF CONVENTION AWARDS
(1) This section has effect as respects awards rendered pursuant to the Convention on the settlement of investment disputes between States and nationals of other States which was opened for signature in Washington on 18th March, 1965. That Convention is in this Act called "the Convention", and its text is set out in the Schedule to this Act.
(2) A person seeking recognition or enforcement of such an award shall be entitled to have the award registered in the High Court subject to proof of the prescribed matters and to the other provisions of this Act.
(3) Where any pecuniary obligation imposed by the award is expressed in a currency other than the currency of the United Kingdom, the award shall be registered as if that obligation were expressed in the currency of the United Kingdom converted on the basis of the rate of exchange prevailing at the date when the award was rendered pursuant to the Convention.
(4) In addition to the pecuniary obligations imposed by the award, the award shall be registered for the reasonable costs of and incidental to registration.
(5) If at the date of the application for registration the pecuniary obligations imposed by the award have been partly satisfied, the award shall be registered only in respect of the balance, and accordingly if those obligations have then been wholly satisfied, the award shall not be registered.
(6) The power to make rules of Court under Section 99 of the Supreme Court of Judicature (Consolidation) Act, 1925, shall include power-
(a) to prescribe the procedure for applying for registration under this section, and to require an applicant to give prior notice of his intention to other parties;
(b) to prescribe the matters to be proved on the application and the manner of proof, and in particular to require the applicant to furnish a copy of the award certified pursuant to the Convention;
(c) to provide for the service of notice of registration of the award by the applicant on other parties; and in this and the next following section "prescribed" means prescribed by rules of court.
(7) For the purposes of this and the next following section
(a) "award" shall include any decision interpreting or annulling an award, being a decision pursuant to the Convention any decision as to costs which under the Convention is to form part of the award,
(b) an award shall be deemed to have been rendered pursuant to the Convention on the date on which certified copies of the award Were pursuant to the Convention dispatched to the parties.
(8) This and the next following-section shall bind the Crown (but not so as to make an award enforceable against the Crown in a manner in which a judgment would not be enforceable against the Crown).
SECTION 02: EFFECT OF REGISTRATION
(1) Subject to the provisions of this Act, an award registered under Section 1-above shall, as respect the pecuniary obligations which it imposes be of the same force and effect for the purposes of execution as if it had been a judgment of the High Court given when the award was rendered pursuant to the Convention and entered on the date of registration under this Act. and, so far as relates to such pecuniary obligations-
(a) proceedings may be taken on the award,
(b) the sum for which the award is registered shall carry interest.
(c) the High Court shall have the same control over the execution of the award, as if the award had been such a judgment of the High Court.
(2) Rules of Court under Section 99 of the Supreme Court of Judicature (Consolidation) Act, 1925, may contain provisions requiring the Court on proof of the prescribed matters to stay execution of any award registered under this Act so as to take account of cases where enforcement of the award has been stayed (whether provisionally or otherwise) pursuant to the Convention, and may provide for the provisional stay of execution of the award where an application is made pursuant to the Convention which, if granted, might result in a stay of enforcement of the award.
SECTION 03: APPLICATION OF ARBITRATION ACT, 1950, AND OTHER ENACTMENTS
(1) The Lord Chancellor may by order direct that any of the provisions contained in-
(a)Section 12 of the Arbitration Act, 1950(Attendance of witnesses, production of documents, etc.) or any corresponding enactments forming part of the law of Northern Ireland, and
(b)the Foreign Tribunals Evidence Act, 1856(which relates to the taking of evidence in the United Kingdom for the purpose of proceedings before a foreign tribunal), shall apply to such proceedings pursuant to the Convention as are specified in the order, with or without any modifications or exceptions specified in the order.
(2) Subject to the sub-section (1) above, neither the Arbitration Act, 1950 nor the Arbitration Act (Northern Ireland), 1937, shall apply to proceedings pursuant to the Convention, but this subsection shall not be taken as affecting Section 4(1) of the Arbitration Act, 1950(stay of Court proceedings where there is submission to arbitration) or Section 4of the said Act of Northern Ireland.
(3)An order made under section--
(a) may be varied or revoked by a subsequent order so made, and
(b) shall be contained in a statutory instrument.
SECTION 04: STATUS, IMMUNITIES AND PRIVILEGES CONFERRED BY THE CONVENTION
(1) In section 6-of the Chapter 1 of the Convention (which governs the status, immunities and privileges of the International Centre for Settlements of Investment Disputes established by the Convention, of members of its Council and Secretariat and of persons concerned with conciliation or arbitration under the Convention) Articles 18 to 20, Article 21 (a) (with Art. 22 as it applies Article 21(a)). Article 23(1) and Article 24 shall have the force of law.
(2) Nothing in Article 24(1) of the Convention as given the force of law by this section shall be construed as
(a) entitling the said Centre to import goods free of customs duty without any restriction on their subsequent sale in the country to which they were imported, or
(b) conferring, on that Centre any exemption from duties or taxes which form part of the price of goods sold or
(c) conferring on that centre any exemption from duties or taxes which are no more than charges for services rendered.
(3) for the purposes of Article 20 and Article 21 (a) of the Convention as given the force of law by this section, a statement to the effect that the said Centre has waived an immunity in the circumstances specified in the statement, being a statement certified by the Secretary-General of the said Centre (or by the person acting as Secretary-General), shall be conclusive evidence.
SECTION 05: GOVERNMENT CONTRIBUTION TO EXPENSES UNDER THE CONVENTION
The Treasury may discharge any obligations of Her Majesty's Government in the United Kingdom arising under Article 17 of the Convention (which obliges the contracting States to meet any deficit of the International Centre for Settlement of Investment Disputes established under the Convention), and any sums required for that purpose shall be met out of money provided by Parliament.
SECTION 06: APPLICATION TO BRITISH POSSESSIONS, ETC.
[Not printed.]
SECTION 07: APPLICATION TO SCOTLAND
- [Not printed.]
SECTION 08: APPLICATION TO NORTHERN IRELAND
- [Not printed.]
SECTION 09: SHORT TITLE AND COMMENCEMENT
(1) This Act may be cited as the ARBITRATION (INTERNATIONAL INVESTMENT
DISPUTES) ACT, 1966.
(2) This Act shall come into force on such day1as her 'Majesty by Order in Council certify to be the day on which the Convention comes into force as regards the United Kingdom.
SCHEDULE 1 TEXT OF CONVENTION
CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES
AND NATIONALS OF OTHER STATES Preamble The Contracting States Considering the need for international co-operation for economic development, and the role of private international investment therein; Bearing in mind the possibility that from time to time disputes may arise in connection with such investment between Contracting States and nationals of other Contracting States; Recognizing that while such disputes would usually be Subject to national legal processes, international methods of settlement may he 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 Reconstrution 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 Contracting State shall by the mere fact of its ratification, acceptance or approval of this Convention and without its consent be deemed to be under any obligation to submit any particular dispute to conciliation or arbitration, Have agreed as follows:
CHAPTER 1 INTERNATIONAL CENTRE FOR SETTLEMENT
OF INVESTMENT DISPUTES SECTION 1 ESTABLISHMENT AND ORGANISATION
Article 1
(1) There is hereby established the International Centre for Settlement of Investment Disputes (hereinafter catted the Centre).
(2) The purpose of the Centre shall be to provide facilities for conciliation and arbitration of investment disputes between Contracting States and nationals of other Contracting States in accordance with the provisions of this Convention.
Article 2
The seat of the Centre shall be at the principal office of the International Bank for Reconstruction and Development (hereinafter called the Bank"). The seat may be moved to another place by decision of the Administrative Council adopted by a majority of two-thirds of its members.
Article 3
The Centre shall have an Administrative Council and a Secretariat and shall maintain a Panel of Conciliators and a Panel of Arbitrators.
ADMINSTRATIVE COUNCIL
Article 4
(1) The Administrative Council shall be composed of one representative of each Contracting State. An alternate may act as representative in case of his principal's absence from a meeting or inability to act.
(2) In the absence of a contrary designation, each Governor and alternate Governor of the Bank appointed by a Contracting State shall be ex officio its representative and its alternative respectively.
Article 5
The President of the Bank shall be ex officio Chairman of the Administrative Council (hereinafter called the Chairman) but shall, have no vote. During his absence or inability to act and during any vacancy in the office of President of the Bnak, 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 the
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 matter 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, 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 03: THE SECRETARIAT
Article 9
The Secretariat shall consist of a Secretary-General, one or more Deputy Secretaries-General and staff.
Article 10
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