Common use of Transfer of Investments and Returns Clause in Contracts

Transfer of Investments and Returns. 1) Disputes arising between the Contracting Parties regarding the interpretation and application of this agreement shall, as far as possible, be settled through diplomatic channels. 2) Disputes arising between either Contracting Party and a national of the other Contracting Party with regards to his investments in the territory of the former Contracting Party shall, as far as possible, be settled amicably; 3) If the disputes could not be settled in the previously mentioned manner, either Contracting Party may present the dispute to an arbitration tribunal composed of three members. Each party to the dispute shall appoint one arbitrator and the two arbitrators shall appoint a third arbitrator as their chairman, who is to be a national of a third state. 4) If one of the Contracting Parties fails to appoint its arbitrator and has not proceeded to do so within two months after an invitation from the other party to make such an appointment, the latter party may invite the International Court of Justice to make the necessary appointment. 5) If the two arbitrators are unable to agree over their choice of the third arbitrator two months following their appointment, either party to the dispute may invite the President of the International Court of Justice to make the necessary appointment. 6) If, in the cases provided for in Paragraphs 4 and 5 of this Article, the President of the International Court of Justice is prevented from discharging the said function or is a national of either Contracting Party, the Vice-President shall be invited to make the necessary appointments. If the Vice-President is prevented from discharging the said function or is a national of either Contracting Party, the next most senior member of the International Court of Justice who is not a national of either Contracting Party shall be invited to make the necessary appointments. 7) The arbitral tribunal shall determine its procedural rules and shall take its decision by a majority of votes. Such decision shall be binding on both Contracting Parties. Each Contracting Party shall bear the costs of its member on the arbitral tribunal, as well as the costs for its representation in the arbitration proceedings. The costs of the chairman as well as any other costs shall be borne in equal parts by the two Contracting Parties. 8) Investors of either Contracting Party may file, before the domestic judiciary of the other Contracting Party host to the investment, any dispute of a legal nature that may arise between them and the Contracting Party with respect to investments made in the latter's territory. However, if an investor of either Contracting Party elects to file a case before the domestic courts of the other Contracting Party, he shall not be permitted to then file the same before domestic courts in the country to which he belongs or before any aforementioned arbitration body.