Common use of Disputes between an Investor and a Contracting Party Clause in Contracts

Disputes between an Investor and a Contracting Party. 1. Any dispute between an investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of that other Contracting Party shall, as far as possible, be settled amicably through negotiations between the parties to the dispute. 2. If the dispute cannot be settled through negotiations within six months from the date of written notification of the dispute, either party to the dispute shall be entitled to submit the dispute to the competent court of the Contracting Party accepting the investment. 3. If a dispute involving the amount of compensation for expropriation cannot be settled within six months after resort to negotiations as specified in paragraph 1 of this Article, it may be submitted at the request of either party to the International Centre for Settlement of Investment Disputes (ICSID) or to an ad hoc arbitral tribunal. Any dispute concerning other matters between an investor of either Contracting Party and the other Contracting Party may be submitted by mutual agreement to an ad hoc arbitral tribunal. The provisions of this paragraph shall not apply if either party to the dispute has resorted to the procedure specified in paragraph 2 of this Article. 4. The decisions by the arbitral tribunal of the International Centre for Settlement of Investment Disputes shall be final and binding on both parties to the dispute. Both Contracting Parties shall commit themselves to the enforcement of the decision in accordance with their respective domestic law. 5. An ad hoc arbitral tribunal referred to in paragraph 3 of this Article shall be constituted for each individual case in the following way. Within two months of the receipt of the request for arbitration, each party to the dispute shall appoint one member of the tribunal. Those two members shall then select a national of a third State which has diplomatic relations with the two Contracting Parties as Chairman. The Chairman shall be selected within two months from the date of appointment of the other two members. If within the period specified above the tribunal has not been constituted, either party to the dispute may invite the Secretary-General of the International Centre for Settlement of Investment Disputes to make the necessary appointments. If the Secretary-General is a national of either Contracting Party or is otherwise prevented from discharging the said function, the next most senior member of the International Centre for Settlement of Investment Disputes who is not a national of either Contracting Party shall be invited to make the necessary appointments. 6. The ad hoc arbitral tribunal shall determine its own procedure. However, the tribunal may, in the course of determination of procedure, take as guidance the Arbitration Rules of the International Centre for Settlement of Investment Disputes. 7. The ad hoc arbitral tribunal shall reach its decision by a majority of votes. Such decision shall be final and binding on both parties to the dispute. Both Contracting Parties shall commit themselves to the enforcement of the decision in accordance with their respective domestic law. 8. The ad hoc arbitral tribunal shall reach its decision in accordance with the law of the Contracting Party to the dispute accepting the investment, including its rules on the conflict of laws, the provisions of this Agreement and generally recognized principles of international law. 9. Each party to the dispute shall bear the cost of its own member of the ad hoc arbit-ral tribunal and of its representation in the arbitral proceedings. The cost of the Chairman and the remaining costs shall be borne in equal parts by the parties to the dispute.

Disputes between an Investor and a Contracting Party. 1. Any dispute between an investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of that the other Contracting Party shall, as far as possible, be settled amicably through negotiations negotiation between the parties to the dispute. 2. If the dispute cannot be settled through negotiations within six months from the date of written notification of the dispute, either party to the dispute shall be entitled to submit the dispute to the competent court of the Contracting Party accepting the investment. 3. If a dispute involving the amount of compensation for expropriation cannot be settled within six months after resort to negotiations as specified in paragraph 1 of this Article, it may be submitted at the request of either party to the International Centre for Settlement of Investment Disputes (ICSID) or to an ad hoc arbitral tribunal. Any dispute concerning other matters between an investor of either Contracting Party and the other Contracting Party may be submitted by mutual agreement to an ad hoc arbitral tribunal. The provisions of this paragraph shall not apply if either party to the dispute investor concerned has resorted to the procedure specified in paragraph 2 of this Article. 4. The decisions by the arbitral tribunal of the International Centre for Settlement of Investment Disputes shall be final and binding on both parties to the dispute. Both Contracting Parties shall commit themselves to the enforcement of the decision in accordance with their respective domestic law. 5. An ad hoc arbitral tribunal referred to in paragraph 3 of this Article shall be constituted for each individual case in the following way. Within two months of the receipt of the request for arbitration, each party to the dispute shall appoint one member of the tribunal. Those two members shall then select a national of a third State which has diplomatic relations with the two Contracting Parties as Chairman. The Chairman shall be selected within two months from the date of appointment of the other two members. If within the period specified above the tribunal has not been constituted, either party to the dispute may invite the Secretary-General of the International Centre for Settlement of Investment Disputes to make the necessary appointmentsAppointments. If the Secretary-General is a national of either Contracting Party or is otherwise prevented from discharging the said function, the next most senior member of the International Centre for Settlement of Investment Disputes Disputed who is not a national of either Contracting Party shall be invited to make the necessary appointments. 6. The ad hoc arbitral tribunal shall determine its own procedure. procedure However, the tribunal may, in the course of determination of procedure, take as guidance the Arbitration Rules of the International Centre for Settlement of Investment Disputes. 7. The ad hoc arbitral tribunal shall reach its decision by a majority of votes. Such decision shall be final and binding on both parties to the dispute. Both Contracting Parties shall commit themselves to the enforcement of the decision in accordance Accordance with their respective domestic law. 8. The ad hoc arbitral tribunal shall reach its decision in accordance with the law of the Contracting Party to the dispute accepting the investment, investment including its rules on the conflict of laws, the provisions of this Agreement and the generally recognized principles of international law. 9. Each party to the dispute shall bear the cost of its own member of the ad hoc arbit-ral arbitral tribunal and of its representation in the arbitral proceedings. The cost of the Chairman and the remaining costs shall be borne in equal parts by the parties to the dispute.

Disputes between an Investor and a Contracting Party. 11 . Any dispute concerning an investment between an and investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of that other Contracting Party shall, as far as if possible, be settled amicably through negotiations between the parties to the disputeamicably. 22 . If the dispute cannot be settled through negotiations within six months from the date of written notification of the dispute, either party to the dispute shall be entitled Each Contracting Party hereby consents to submit the dispute to the competent court of the Contracting Party accepting the investment. 3. If a dispute involving the amount of compensation for expropriation cannot be settled within six months after resort to negotiations as specified in paragraph 1 of this Article, it may be submitted at the request of either party to the International Centre for Settlement of Investment Disputes (ICSID) for settlement by conciliation or arbitration under the Washington Convention of 18 March 1965 on the Settlement of Investment Disputes between States and Nationals of Other States any such dispute which has not been settled within six months following the date, on which the dispute has been raised by either party. If the parties to such a dispute have different opinions as to whether conciliation or arbitration is the more appropriate method of settlement, the investor shall have the right to choose. The dispute may also, at the choice of the investor, be submitted for settlement by binding arbitration to an ad hoc arbitral tribunaltribunal to be set up under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). 3 . Any For the purpose of this Article and in accordance with Article 25 (2) (b) of the said Washington Convention, any legal person which is constituted in accordance with the legislation of one Contracting Party and which, before a dispute concerning other matters between arises, is controlled by an investor of either Contracting Party and the other Contracting Party may Party, shall be submitted by mutual agreement to an ad hoc arbitral tribunaltreated as a legal person of the other Contracting Party. The provisions of this paragraph appointing authority under the UNCITRAL Arbitration Rules shall not apply if either party to be the dispute has resorted to President, the procedure specified in paragraph 2 of this Article. 4. The decisions by Vice-President or the arbitral tribunal next senior Judge of the International Centre for Settlement Court of Investment Disputes shall be final and binding on both parties to the dispute. Both Contracting Parties shall commit themselves to the enforcement of the decision in accordance with their respective domestic law. 5. An ad hoc arbitral tribunal referred to in paragraph 3 of this Article shall be constituted for each individual case in the following way. Within two months of the receipt of the request for arbitrationJustice, each party to the dispute shall appoint one member of the tribunal. Those two members shall then select a national of a third State which has diplomatic relations with the two Contracting Parties as Chairman. The Chairman shall be selected within two months from the date of appointment of the other two members. If within the period specified above the tribunal has not been constituted, either party to the dispute may invite the Secretary-General of the International Centre for Settlement of Investment Disputes to make the necessary appointments. If the Secretary-General is a national of either Contracting Party or is otherwise prevented from discharging the said function, the next most senior member of the International Centre for Settlement of Investment Disputes who is not a national of either Contracting Party Party. The third arbitrator shall not be invited to make the necessary appointmentsa national of either Contracting Party. 64 . The ad hoc arbitral tribunal shall determine its own procedure. However, the tribunal may, in the course of determination of procedure, take as guidance Any arbitration under the Arbitration Rules of UNCITRAL shall be held in a state that is a party to the International Centre for Settlement United Nations Convention on the Recognition and Enforcement of Investment DisputesForeign Arbitral Awards, done at New York, June 10, 1958. 75 . The ad hoc consent given by each Contracting Party in paragraph (2) and the submission of the dispute by an investor under the said paragraph shall satisfy the requirement of: (a) Chapter II of the Washington Convention (Jurisdiction of the Centre) for written consent of the parties to a dispute; (b) Article 1 of the UNCITRAL Arbitration Rules for an agreement in writing on referral to arbitration by the parties to a contract; andArticle 1 of the UNCITRAL Arbitration Rules for an agreement in writing on referral to arbitration by the parties to a contract; and (c) Article II of the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York, June 10, 1958, for an agreement in writing. 6 . Any arbitral tribunal shall reach its decision by a majority of votes. Such decision award rendered pursuant to this Article shall be final and binding on both the parties to the dispute. Both Each Contracting Parties Party shall commit themselves to carry out without delay the provisions of any such award and provide in its territory for the enforcement of the decision in accordance with their respective domestic lawsuch award. 87 . The ad hoc arbitral tribunal In any proceeding involving an investment dispute, a Contracting Party shall reach its decision in accordance with not assert, as a defense, counterclaim, right of set-off or for any other reason, that indemnification or other compensation for all or part of the law of alleged damages has been received pursuant to an insurance or guarantee contract provided that the Contracting Party may require evidence that the compensating party agrees to that the dispute accepting investor exercises the investment, including its rules on the conflict of laws, the provisions of this Agreement and generally recognized principles of international lawright to claim compensation. 9. Each party to the dispute shall bear the cost of its own member of the ad hoc arbit-ral tribunal and of its representation in the arbitral proceedings. The cost of the Chairman and the remaining costs shall be borne in equal parts by the parties to the dispute.