ARBITRATION ġ CAP. 387.        1
CHAPTER 387
ARBITRATION ACT
To encourage and facilitate the settlement of disputes through
arbitration in Malta, to establish the Malta Arbitration Centre as a centre
for domestic arbitration and international commercial arbitration, to make
provisions regulating the conduct of arbitration proceedings and the
recognition and enforcement of certain arbitral awards.
23 February, 1998;
23 March, 2000;
1st August, 2000
ACT II of 1996 as amended by Acts XVIII of 1999 and XXXI of 2002.
PART I
 Preliminary
Short title.
Interpretation.
Amended by:
XVIII.1999.2.
2. In this Act, unless the context otherwise requires -
"arbitration agreement" means an agreement as defined in Article
7 of the Model Law:
Provided that:
( a ) the provisions of article 7 of the Model Law shall be
deemed to have been complied with if the arbitration
agreement is contained in a document transmitted from
one party to the other party or by a third party to both
parties, and if no objection was raised thereto within
thirty days of the receipt of the document;
( b ) the reference in a written contract to a document
containing an arbitration clause constitutes an
arbitration agreement provided that the reference is
such as to make that clause part of the contract;
( c ) an arbitration agreement is also concluded by the
issuance of a bill of lading, if the latter contains an
express reference to an arbitration clause in a charter
party; 
"arbitral tribunal" means a sole arbitrator or a number of
arbitrators;
"Board" means the Board of Governors of the Centre;
"Centre" means the Malta Arbitration Centre established by
article 3;
"chairman" means the chairman of the Board;
"financial period" means a period of five years commencing on
the first January of one year and ending on the thirty first day of
December of the fifth year thereafter; provided that the first
financial period of the Centre shall be the period commencing with
the coming into force of Part III of this Act and ending on the 31st
day of December of the year next following that on which the said
  2      CAP. 387. ħ                   ARBITRATION
Part III shall have come into force;
"Minister" means the Minister responsible for justice;
"Model Law" means the Model Law on International
Commercial Arbitration adopted on June 21, 1985 by the United
Nations Commission on International Trade Law reproduced in the
First Schedule to this Act;
"registrar" means the registrar of the Centre.
PART II
Establishment and Functions of the Centre
Establishment of 
the Arbitration 
Centre.
 3. (1) A centre, to be known as the Malta Arbitration Centre,
is hereby established for the purposes and with the functions set out
by this Act.
(2) The Centre shall be a body corporate having a distinct legal
personality and, subject to the provisions of this Act, shall be
capable of entering into contracts, of acquiring, holding and
disposing of any kind of property for the purposes of its functions,
of suing and of being sued, and of doing all such things and
entering into all such transactions as are incidental or conducive to
the exercise or performance of its functions under this Act.
(3) Any document purporting to be an instrument made or
issued by the Centre and signed by the chairman or such other
member of the Board, officer or employee of the Centre as may be
set out in a notice issued by the chairman and published in the
Gazette, shall be received in evidence and shall, until the contrary
is proved, be deemed to be an instrument made or issued by the
Centre.
Establishment and 
composition of 
Board.
Amended by:
XVIII.1999.3;
XXXI. 2002.234.
4. (1) There shall be a Board which shall be responsible for
the policy and general administration of the affairs and business of
the Centre.
(2) The Board shall consist of not less than three and not more
than five members , appointed by the President of Malta acting on
the advice of the Minister, one of whom shall be designated by the
Minister as chairman. The Minister shall also designate another
member as deputy chairman and such member shall have all the
powers and perform all the functions of the chairman during his
absence, or until a new chairman has been appointed following the
resignation, termination of appointment, or death of the chairman.
(3) The Minister shall select the members of the Board from
among persons who appear to him to be qualified by reason of
having had experience of and shown capacity in matters relating to
international or domestic arbitration, conciliation and the
settlement of disputes, international trade, commerce, industry,
investment and maritime affairs; the Attorney General shall be an
ex officio  member of the Board.
(4) In the exercise of their functions under this Act all the
members of the Board shall exercise their functions in their
ARBITRATION ġ CAP. 387.        3
individual judgment and shall not be subject to the direction or
control of any other person or authority.
Qualifications of 
chairman and 
deputy.
 5. A person shall not be qualified to be appointed chairman or
deputy chairman of the Board unless he has practised as an
advocate in Malta for a period or periods amounting in the
aggregate to not less than twelve years.
Duration of 
appointment of the 
Board.
Amended by:
XVIII.1999.4.
 6. (1) Subject to the provisions of articles 4, 7 and 9, the
members of the Board shall hold office for a six year period; and a
member shall, on ceasing to be a member, be eligible for re-
appointment:
Provided that the Minister may at any time, on the
recommendation of the Commission for the Administration of
Justice established under article 101A of the Constitution of Malta,
terminate the appointment of a member of the Board if in his
opinion, confirmed by the recommendation of the said Commission
as aforesaid, such member is unfit to continue in office or has
become incapable of properly performing his duties as member of
the Board, and the said Commission is hereby vested with the
function and power to make a recommendation to the Minister as
aforesaid.
(2) The members of the Board shall be entitled to such
remuneration and allowances as the Minister may from time to time
determine.
Disqualification 
from or being a 
member of the 
Board.
7. A person shall be disqualified for appointment to, or from
remaining, a member of the Board if he - 
( a ) is legally incapacitated; or
( b ) has been adjudged bankrupt under the law of any
country or has made a composition or arrangement
with his creditors; or
( c ) has been convicted of a crime affecting public trust, or
theft or fraud; or
( d ) save as provided in article 4(3), is a public officer; or
( e ) has any financial or other interest in any enterprise or
activity which is likely to affect prejudicially the
discharge of his functions as a member of the Board.
Resignations.
letter addressed to the Minister.
(2) The appointment of any person as member of the Board,
and the termination of office or resignation of any such person,
shall be notified in the Gazette.
Registrar and other 
employees of the 
Centre.
Amended by:
XVIII.1999.5.
9. (1) The Centre shall have a registrar, who shall also be the
secretary of the Board. In connection with his functions under this
Act, the registrar shall have power to administer oaths, including,
without prejudice to the generality of the aforesaid, the power to
administer oaths of office that may be required to be taken by
arbitrators or any other person involved in arbitration proceedings
  4      CAP. 387. ħ                   ARBITRATION
under any rule made under this Act.
(2) Subject to the provisions of the Constitution and of any
other enactment applicable thereto, the registrar and the other
employees of the Centre shall be appointed by the Board under
such terms and conditions as the said Board shall deem appropriate.
(3) The legal representation of the Centre shall be vested in the
registrar, or any other person so authorised by the Board.
(4) The registrar shall also perform any function that may be
delegated to him in writing by the Board from time to time.
Functions of the 
Centre.
Amended by:
XVIII.1999.6.
10. (1) The functions of the Centre shall be:
(i) ( a ) to promote Malta as a centre for international
commercial arbitration;
(b ) to provide for the conduct of international
arbitration in Malta;
( c ) to encourage domestic arbitration as a means of
settling disputes;
( d ) to provide the necessary facilities for the
conduct of arbitration;
( e ) to advise the Government on any of the matters
mentioned in the foregoing sub paragraphs of
this paragraph;
( f ) to perform such other functions assigned to it by
this or any other law; and
( g ) to perform any other function supplementary or
ancillary to the above.
(ii) Subject to the other provisions of this Act, the Centre
shall have power, exercisable through its Board, to
make rules to be published in the Gazette providing
for:
( a ) procedure for arbitrations;
( b ) the manner and requirements (including any fees
payable therefor) for registration of any
document under this Act;
( c ) guidelines and optional models or specimens for
the drawing up of arbitration clauses and
agreements; and 
( d ) any other matter in connection with which rules
may be made under any provision of this Act.
(2) The Centre may, from time to time, draw up panels of
arbitrators for domestic arbitration and panels of arbitrators for
international commercial arbitration:
Provided however that a person may be included in more
than one panel.
(3) Domestic arbitration panels may be appointed on matters
related to commerce, insurance, traffic collisions, building
construction, the maritime sector and such other fields as the
Centre may deem expedient from time to time. The panels shall be
ARBITRATION ġ CAP. 387.        5
composed of persons who in the opinion of the Centre are qualified
to carry out the duties and functions of arbitrators in a particular
field of expertise.
(4) The Centre shall establish an International Arbitral
Advisory Committee, to be presided by the chairman of the Centre,
which shall have the functions to advise the Centre on any matter
relating to international commercial arbitration and to recommend
to the Centre persons, who in its opinion, are qualified to carry out
the duties and functions of arbitrators in international commercial
arbitrations.
(5) The Centre shall, acting on the recommendation of the
International Arbitral Advisory Committee, appoint panels of
arbitrators for international commercial arbitration on matters such
as international trade, commerce, insurance, investment and the
maritime sector.
(6) A person may be removed from any panel by the Centre at
any time, and a person may at any time resign by letter addressed to
the registrar:
Provided that any such removal or resignation shall not be
deemed to include the removal or resignation of that person from
any arbitration proceedings in which he may have already been
appointed before his removal or resignation.
(7) For the purpose of encouraging settlement of a dispute, the
Centre may, with the agreement of the parties and in accordance
with rules made by the Centre under this Act, employ mediation,
conciliation or other procedures at any time before or during the
arbitration proceedings.
PART III
Finances
Estimates of the 
Centre.
 11. (1) The Centre shall cause to be prepared in every
financial period, and shall not later than six months before the end
of each financial period adopt, estimates of the income and
expenditure of the Centre for the next following financial period.
(2) The estimates shall be made out in such form and shall
contain such information and such comparisons with previous
financial periods as the Minister may direct. The estimates shall
take into account such government contribution, if any, to the
revenues of the Centre as the Minister may indicate to the Centre
that he will recommend to the House of Representatives for the
financial period in consideration, in accordance with article 13.
(3) A copy of the estimates of the Centre shall upon their
adoption by the Centre, be sent forthwith by the Board to the
Minister.
Revenue of the 
Centre.
12. (1) The revenues of the Centre shall consist of the fees
charged for the services provided by it under this Act and of any
government contribution made in accordance with article 13.
  6      CAP. 387. ħ                   ARBITRATION
(2) The Minister, after consultation with the Centre, may
establish by regulations the fees to be charged by the Centre for any
services, facilities or any other matter provided by it in accordance
with this Act or in pursuance of the exercise of its functions under
this Act.
Government 
contribution.
Amended by:
XVIII.1999.7.
13. (1) The Minister may, after consultation with the Centre
and with any other person or authority and with the concurrence of
the Minister responsible for finance, indicate in writing to the
Centre the amount of government contribution to be made to the
Centre and to be included in its estimates for the next financial
period. The indication made by the Minister as aforesaid shall be
attached to the estimates of the Centre to be forwarded to the
Minister.
(2) Upon the approval of the estimates with or without
amendments as provided in this Act, the sum approved in the
estimates as the government contribution shall be paid to the Centre
out of the Consolidated Fund without any further authority other
than this Act.
(3) Notwithstanding the provisions of subarticles (1) and (2)
the government contribution for the first financial period of the
Centre shall be of a sum of two hundred thousand liri and such sum
shall be paid to the Centre out of the Consolidated Fund without
any further authority other than this subarticle.
(4) Any excess of revenue over the expenditure of the Centre
shall, subject to such directives as the Minister, after consultation
with the Minister responsible for finance, may from time to time
give, be applied by the Centre to the formation of reserve funds to
be used for the purposes of the Centre; and, without prejudice to the
generality of the powers given to the Minister by this subarticle,
any direction given by the Minister as aforesaid may order the
transfer to the Government, or the application in such manner as
may be specified in the direction, of any part of such revenues. 
PART IV
Domestic Arbitration
Domestic 
arbitration.
Amended by:
XVIII.1999.8.
14. A domestic arbitration agreement is an arbitration
agreement which does not fall under Part V of this Act, and in
particular under Article 1(3) of the Model Law.
Procedure in 
domestic 
arbitration.
Amended by:
XVIII.1999.9;
XXXI. 2002.235.
 15. (1) In the case of a domestic arbitration agreement, falling
under article 14, disputes shall be settled in accordance with the
provisions of this Part, subject to such modification as ( a ) the
parties may agree upon in writing, and ( b ) may be permitted by
law.
(2) For the purpose of this Act, a dispute shall include any
controversy or claim arising out of or relating to the agreement, or
the breach, termination or invalidity thereof or failure to comply
therewith.
Cap. 12. (3) Notwithstanding any provision of the Code of Organization
ARBITRATION ġ CAP. 387.        7
and Civil Procedure if any party to an arbitration agreement, or any
person claiming through or under him, commences any legal
proceedings in any court against any other party to the arbitration
agreement or any person claiming through or under him, in respect
of any matter agreed to be referred to arbitration, any party to such
legal proceedings may at any time before delivering any pleadings
or taking other steps in the proceedings, apply to that court to stay
the proceedings, and that court or a judge thereof, unless satisfied
that the arbitration agreement has become inoperative or cannot
proceed, or that in fact there is no dispute between the parties with
regard to the matter agreed to be referred, shall make an order
staying the proceedings.  An application may be made
notwithstanding that the matter is to be referred to arbitration only
after the exhaustion of other dispute resolution procedures.
(4) Where proceedings as are referred to in subarticle (3) have
been brought before a court, arbitral proceedings may be commenced
or continued: provided that the arbitral tribunal shall not take any steps
in the arbitration until the Court decides on the application except in
cases where failure to provide a remedy will result in irreparable harm
to any party to the arbitral proceedings. Upon the decision of the
Court, which shall be notified to the arbitral tribunal by the applicant,
the arbitral tribunal shall be bound by the decision of the Court on the
issues dealt with in the application and shall act accordingly .
(5) Any matter being the subject of a dispute even after an
action thereanent has been brought before a court, shall, unless
such matter is one referred to in subarticle (6), be capable of
settlement by arbitration if all parties to the dispute agree.
(6) Disputes, concerning questions of personal civil status
including those relating to personal separation and annulment of
marriage, are not capable of settlement by arbitration:
Provided that questions relating to the division of property
between spouses may be referred to arbitration subject to the approval
by the competent court of the arbitration agreement and of the
arbitrator to be appointed.
(7) Any submission to domestic arbitration made by an
administrator, or by any person who is not at liberty to dispose of
the thing, is null.
(8) Upon the filing of an application to stay proceedings in
terms of subarticle (3), any time limit for the filing of any
statement of defence or other response, whether arising at law or by
order of any court or tribunal or otherwise, shall be interrupted and
shall commence to run again from the date on which the applicant
is served with the decision of the Court to dismiss the application,
and this irrespective of whether an appeal on such decision is filed
by any party.
Cap. 12.
Organization and Civil Procedure may make rules concerning
applications to the Court under subarticle (3) and prescribe the fees
to be paid on such applications.
(10) Any submission to arbitration of a dispute the subject
  8      CAP. 387. ħ                   ARBITRATION
matter of which falls within the jurisdiction or competence of a
board, tribunal or other authority set up for the purpose by any law
shall be valid and effective and the provisions of subarticle (3)
shall apply thereto  mutatis mutandis ; provided that the provisions
of this subarticle shall not apply where the board, tribunal or other
authority is one as is specified in article 75(1).
Notice and 
calculation of 
periods of time.
Amended by:
XVIII.1999.10.
16. (1) For the purposes of this Part, any notice, including a
notification, communication or proposal, is deemed to have been
received and duly notified if it is physically delivered to the
addressee or if it is delivered at his habitual residence, place of
business or mailing address, or, if none of these can be found after
making reasonable enquiry, at the addressee’s last-known residence
or place of business. Notice shall be deemed to have been received
on the day it is so delivered :
Provided that the Centre may by rules under this Act
provide for other modes of service and make provision relating to
when services is deemed to have been made.
(2) For the purposes of calculating a period of time under this
Part, such period shall begin to run on the day following the day
when a notice, notification, communication or proposal is received.
If the last day of such period is a public holiday or a non-working
day, the period is extended until the first working day which
follows. Public holidays or non-working days occurring during the
running of the period of time are included in calculating the period.
Notice of 
arbitration.
Amended by:
XVIII.1999.11;
XXXI. 2002.236.
17. (1) The party initiating recourse to arbitration (hereinafter
called "the claimant") shall file with the registrar, a notice of
arbitration for registration by the Centre and for onward
transmission to the other party (hereinafter called "the
respondent"), and any procedures and any award pursuant thereto
in any arbitration to which this Part refers, shall be null and void
and unenforceable if the relative notice of arbitration shall not have
been filed with the Centre:
Provided that the nullity of the procedures shall not arise if,
having failed to file the notice of arbitration as contemplated by
this article at the commencement of proceedings, any party files the
notice at any time prior to the communication of the award in
accordance with article 44(6). In such event the Centre shall
register the notice of arbitration but shall have no further duties in
that regard.
(2) Arbitral proceedings shall be deemed to commence on the
date on which the notice of arbitration is received by the
respondent :
Cap. 12.
Cap. 16.
Provided that for the purposes of articles 843, 846, 849, 867
and 875 of the Code of Organization and Civil Procedure  and article
1357(2) of the Civil Code  arbitral proceedings under this Part shall
be deemed to commence upon the filing of the notice of arbitration
with the registrar.
(3) The notice of arbitration shall include the following:
( a ) a demand that the dispute be referred to arbitration;
ARBITRATION ġ CAP. 387.        9
( b ) the names and addresses of the parties;
( c ) a reference to the arbitration clause or the separate
arbitration agreement that is invoked;
( d ) a reference to the contract out of which, or the defined
legal relationship in respect to which, the dispute
arises;
( e ) the general nature of the claim and an indication of the
amount involved, if any;
( f ) the relief or remedy sought; and
( g ) a proposal as to the number of arbitrators if the parties
have not previously agreed thereon.
(4) The notice of arbitration may also include:
( a ) the proposals for the appointment of a sole arbitrator;
( b ) the notification of the appointment of an arbitrator
referred to in article 21; and
( c ) the statement of claim referred to in article 29.
Representation and 
assistance.
18. (1) Subject to the provisions of subarticle (2), the parties
may be represented or assisted by persons of their choice. The
names and addresses of such persons must be communicated in
writing to the other party; such communication must specify
whether the appointment is being made for purposes of
representation or assistance.
(2) A legal practitioner or a person not qualified under the
Laws of Malta may act on behalf of a party to an arbitral
proceeding to which this Act applies, including appearing before
the arbitral tribunal, and he shall not thereby be taken to have
breached any law of Malta regulating the practice of the legal
profession.
Number of 
arbitrators.
 19. If the parties have not previously agreed on the number of
arbitrators, and if within fifteen days after the receipt by the
respondent of the notice of arbitration, the parties have not agreed
that there shall be only one arbitrator, three arbitrators shall be
appointed:
Provided however that if the dispute amount is under five
thousand liri, there shall be a sole arbitrator.
Appointment of 
arbitrators.
 20. (1) If a sole arbitrator is to be appointed, either party may
propose to the other the names of one or more persons, one of
whom may serve as the sole arbitrator.
(2) If within thirty days after receipt by a party of a proposal
made in accordance with subarticle (1), the parties have not
reached agreement on the choice of a sole arbitrator, the sole
arbitrator shall be appointed by the chairman.
(3) The chairman shall, at the request of one of the parties,
appoint the sole arbitrator as promptly as possible; his decision
shall be final and binding.
  10      CAP. 387. ħ                   ARBITRATION
(4) In making the appointment, the chairman shall have regard
to such considerations as are likely to secure the appointment of an
independent and impartial arbitrator and to the members of the
Domestic Arbitration Panels established under article 10(2).
(5) An arbitrator shall not be liable in damages for negligence
in anything done or omitted to be done by him as arbitrator:
Provided that an arbitrator shall be liable in respect of
anything wilfully done or omitted to be done by him as arbitrator
where his action or omission is attributable to malice or fraud on
his part. 
Presiding 
arbitrator.
  21. (1) If three arbitrators are to be appointed, each party shall
appoint one arbitrator. The two arbitrators thus appointed shall
choose the third arbitrator who will act as the presiding arbitrator
of the arbitral tribunal.
(2) If within thirty days after the receipt of a party’s
notification of the appointment of an arbitrator, the other party has
not notified the first party of the arbitrator he has appointed, the
first party may request the chairman to appoint the second
arbitrator.
(3) If within thirty days after the appointment of the second
arbitrator, the two arbitrators have not agreed on the choice of the
presiding arbitrator, the presiding arbitrator shall be appointed by
the chairman.
(4) The chairman shall apply the provisions of article 20,
mutatis mutandis , in any appointment made under the provisions of
subarticles (2) or (3).
Multiple parties.
Added by:
XVIII.1999.12.
21A (1) Where there are multiple parties, whether as claimant
or as respondent, the multiple claimants, jointly, and the multiple
respondents, jointly, shall make a proposal to the other party for an
arbitrator to be appointed pursuant to article 20 or shall appoint an
arbitrator pursuant to article 21, as the case may be.
(2) Where the dispute is to be referred to a sole arbitrator and
where there are multiple parties, whether as claimant or as
respondent, the multiple claimants, jointly, and the multiple
respondents, jointly, may reach an agreement with the other party
on the choice of a single arbitrator to be appointed pursuant to
article 20.
(3) In the absence of such joint nomination, where the dispute
is to be referred to three arbitrators and where all parties are unable
to agree to a method for the constitution of the arbitral tribunal, the
chairman may on the request of either of the parties appoint each
member of the arbitral tribunal and shall designate one of them to
act as presiding arbitrator. 
Request to the 
chairman to 
appoint an 
arbitrator.
Amended by:
XVIII.1999.13.
22. (1) When the chairman is requested to appoint an
arbitrator pursuant to articles 20, 21 or 21A, the party which makes
the request shall file with the registrar a notice for an appointment
and refer therein to the notice of arbitration filed under article 17. 
(2) The Centre may require from either party such information
ARBITRATION ġ CAP. 387.        11
as may be deemed necessary to fulfil its function.
(3) Where persons are proposed for appointment as arbitrators,
their full names, addresses and nationalities together with a
description of their profession, qualifications and experience shall
be indicated.
Impartiality or 
independence.
23. (1) A person who is approached as a prospective arbitrator
shall disclose to those who approach him in connection with his
possible appointment any circumstances likely to give rise to
justifiable doubts as to his impartiality or independence.
(2) An arbitrator, once appointed or chosen, shall disclose to
the parties the circumstances mentioned in the previous subarticle
unless the parties have already been informed by him of these
circumstances.
Challenge of 
arbitrator.
24. (1) Any arbitrator may be challenged if circumstances
exist that give rise to justifiable doubt as to the arbitrator’s
impartiality or independence.
(2) A party may challenge the arbitrator appointed by him only
for reasons of which he becomes aware after the appointment has
been made.
Notification of 
challenge.
25. (1) A party who intends to challenge an arbitrator, shall
send notice of his challenge within fifteen days after the
appointment of the challenged arbitrator has been notified to that
party or within fifteen days after the circumstances mentioned in
article 23 and 24 became known to that party.
(2) The challenge shall be notified to the registrar, to the other
party, to the arbitrator who is challenged and to the other members
of the arbitral tribunal. The notification shall be in writing and shall
state the reasons for the challenge.
(3) When an arbitrator has been challenged by one party the
other party may agree to the challenge. The arbitrator may also,
after the challenge, withdraw from his office. In neither case does
this imply acceptance of the validity of the grounds for the
challenge. In both cases the procedure provided in articles 20 and
21 shall be used in full for the appointment of the substitute
arbitrator even if during the process of appointing the challenged
arbitrator a party had failed to exercise his right to appoint or to
participate in the appointment.
Non-withdrawal of 
challenged 
arbitrator.
26. (1) If the other party does not agree to the challenge and
the challenged arbitrator does not withdraw, the decision on the
challenge will be made by the chairman, and his decision shall be
final and binding.
(2) When the chairman sustains the challenge, he shall appoint
a substitute arbitrator.
Replacement of an 
arbitrator.
 27. (1) In the event of the death or resignation of an arbitrator
during the course of the arbitral proceedings a substitute arbitrator
shall be appointed or chosen pursuant to the procedure provided for
in articles 20 to 23 which was applicable to the appointment or
  12      CAP. 387. ħ                   ARBITRATION
choice of the arbitrator being replaced.
(2) In the event that an arbitrator fails to act or in the event of
the  de jure  or  de facto  impossibility of his performing his
functions, the procedure in respect of the challenge and
replacement of an arbitrator as provided in the preceding articles
shall apply.
Language.
Amended by:
XVIII.1999.14.
 28. (1) The language to be used in the proceedings shall,
unless the parties agree otherwise, be Maltese.
(2) The arbitral tribunal may order that any documents annexed
to the statement of claim or statement of defence, and any
supplementary documents or exhibits submitted in the course of the
proceedings, shall be delivered in their original language or
languages agreed on by the parties or determined by the arbitral
tribunal.
Statement of claim.  29. (1) Unless the statement of claim was contained in the
notice of arbitration, within a period of time to be determined by
the arbitral tribunal, the claimant shall communicate his statement
of claim in writing to the respondent and to each of the arbitrators.
A copy of the contract, and of the arbitration agreement if not
contained in the contract, shall be annexed thereto.
(2) The statement of claim shall include the following
particulars:
( a ) the names and addresses of the parties;
( b ) a statement of the facts supporting the claim;
( c ) the points at issue; and
( d ) the relief or remedy sought.
(3) The claimant may annex to this statement of claim all
documents he deems relevant or may add a reference to the
documents or other evidence he will submit.
Statement of 
defence.
  30. (1) The respondent shall communicate his statement of
defence in writing to the claimant and to each of the arbitrators
within a period of time to be determined by the arbitral tribunal.
(2) The statement of defence shall contain a reply to the
particulars ( b ), ( c ) and ( d ) of the statement of claim referred to in
article 29(2). The respondent may annex to his statement the
documents on which he relies for his defence or may add a
reference to the documents or other evidence he will submit.
(3) In his statement of defence, or at a later stage in the arbitral
proceedings, if the arbitral tribunal decides that the delay was
justified under the circumstances, the respondent may make a
counter-claim arising out of the same contract or rely on a claim
arising out of the same contract for the purpose of a set-off.
(4) The provisions of article 29(2) shall apply to a counter-
claim and a claim relied on for the purpose of a set-off.
Amendments to the 
claim or defence.
31. During the course of the arbitral proceedings either party
ARBITRATION ġ CAP. 387.        13
may amend or supplement his claim or defence unless the arbitral
tribunal considers it inappropriate to allow such amendment having
regard to the delay in making it or prejudice to the other party or
any other justifiable circumstances. However, a claim may not be
amended in such a manner that the amended claim falls outside the
scope of the clause or of the separate arbitration agreement.
Pleas as to the 
jurisdiction of the 
arbitral tribunal.
Amended by:
XXXI. 2002.237.
32. (1) The arbitral tribunal shall have the power to rule on
objections that it has no jurisdiction, including any objections with
respect to the existence or validity of the arbitration clause or of the
separate arbitration agreement. 
(2) The arbitral tribunal shall have the power to determine the
existence or the validity of the contract of which an arbitration
clause forms part. For the purposes of article 32, an arbitration
clause which forms part of a contract and which provides for
arbitration under this Part shall be treated as an agreement
independent of the other terms of the contract. A decision by the
arbitral tribunal that the contract is null and void shall not entail
ipso jure  the invalidity of the arbitration clause.
(3) A plea that the arbitral tribunal does not have jurisdiction
shall be raised not later than in the statement of defence or, with
respect to a counter-claim, in the reply to the counter-claim.
(4) In general, the arbitral tribunal should rule on a plea
concerning its jurisdiction as a preliminary question:
Provided that the arbitral tribunal may proceed with the
arbitration and rule on such a plea in its final award.
(5) In the event that proceedings are filed before any court for a
declaration relating to the jurisdiction of an arbitral tribunal, such
proceedings shall be dismissed and the parties shall be referred to the
arbitral tribunal for its decision on such issue, unless the court
considers that any party will suffer irreparable harm unless it
determines the issue.
Further written 
statements.
33. The arbitral tribunal shall decide what further written
statements, in addition to the statement of claim and the statement
of defence, shall be required from the parties or may be presented
by them and shall fix the periods of time for communicating such
statements. 
Periods of time.
communication of written statements (including the statement of
claim and statement of defence) should not exceed forty-five days:
  Provided that the arbitral tribunal may extend the time-
limits if it considers that an extension is justified.
Burden of proof.
relied on to support his claim or defence.
(2) The arbitral tribunal may, if it considers it appropriate,
require a party to deliver to the tribunal and to the other party,
within such a period of time as the arbitral tribunal may decide, a
summary of the documents and other evidence which that party
intends to present in support of the facts in issue set out in his
  14      CAP. 387. ħ                   ARBITRATION
statement of claim or statement of defence.
(3) At any time during the arbitral proceedings the arbitral
tribunal may require the parties to produce documents, exhibits or
other evidence within such a period or time as the arbitral tribunal
shall determine. 
Evidence.
Amended by:
XXXI. 2002.238.
Cap. 12.
36. (1) Subject to the provisions of article 37, the evidence of
witnesses in an arbitration shall be produced either  viva voce  or by
affidavit, and subject to the relevant articles of this Part, the rules
of the Code of Organization and Civil Procedure and of any law
from time to time in force in Malta shall apply to the production of
evidence  viva voce  or by affidavit before the arbitral tribunal as
they apply to the production of evidence before a court of civil
jurisdiction.
(2) The Centre may make rules setting down the terms within
which the evidence is to be produced and the manner of its
production, and the parties may, notwithstanding the foregoing and
the provisions of subarticle (1), agree that the evidence of
witnesses is to be produced within such times and in such manner
as may be determined by the parties:
  Provided that such agreement may not be incompatible with
any rule made by the Centre and declared by it to be inderogable.
(3) Subject to the provisions of article 37(2), where the
evidence of any person is required, the registrar may issue writs of
subpoena to compel the attendance of a witness to give evidence or
produce documents before an arbitral tribunal. The application for
the issue of the writ shall be countersigned by the sole arbitrator, or
the presiding arbitrator, and shall be filed in the registry of the
Civil Court, First Hall, by the registrar.
(4) The provisions of subarticle (3) shall apply  mutatis
mutandis  where for the purposes of proceedings before an arbitral
tribunal, a rogatory commission or letters of request are required to
be issued in respect of, or an affidavit is required by, a person who
is not resident within the jurisdiction of the courts of Malta. 
(5) Upon the filing of an application to which subarticles (3) and
(4) apply, the court which, had there not been an arbitration agreement,
would otherwise have had jurisdiction shall notify the writ or
otherwise act on the application in the same manner as if such
application or such writ had been issued or approved by the Civil
Court, First Hall.
(6) Where any person who has been regularly subpoenaed to
appear before an arbitral tribunal in accordance with this article
fails to appear before the said tribunal without reasonable excuse,
the tribunal may make a report thereon to the registrar who shall by
application bring the report to the attention of the Civil Court, First
Hall, requesting it to deal with the matter in the same manner as if
the person concerned had failed to appear before that court when
regularly subpoenaed and thereupon the court shall deal with the
matter in the said manner.
Oral hearing. 37. (1) In the event of an oral hearing of the parties or of
ARBITRATION ġ CAP. 387.        15
witnesses, the arbitral tribunal shall give the parties adequate
advance notice of the date, time and place thereof.
(2) If the witnesses are to be heard, each party shall
communicate to the arbitral tribunal and to the other party, at least
fifteen days before the hearing, the names and addresses of the
witnesses he intends to present, the subject upon which and the
languages in which such witnesses will give their testimony.
(3) The arbitral tribunal shall make arrangements for the
translation of oral statements made at a hearing and for a record of
the hearing if either is deemed necessary by the arbitral tribunal in
the circumstances of the case, or if the parties have agreed thereto
and have communicated such agreement to the arbitral tribunal at
least fifteen days before the hearing.
(4) Hearings shall be held  in camera  unless the parties agree
otherwise. The arbitral tribunal may require the retirement of any
witness or witnesses during the testimony of other witnesses. The
arbitral tribunal is free to determine the manner in which witnesses
are examined.
(5) The arbitral tribunal shall determine the admissibility,
relevance, materiality and weight of the evidence offered.
Interim measures 
and precautional 
acts.
Amended by:
XVIII.1999.15;
XXXI. 2002.239.
Cap. 12.
Cap. 12.
38. (1) Unless otherwise agreed by the parties, any party may
request the court to issue any of the precautionary acts listed in
article 830(1) of the Code of Organization and Civil Procedure
subject to the provisions of the following subarticles.
(2) Where in accordance with subarticle (1) a precautionary act
has been issued, such act shall remain in force until such time as it
shall expire or be revoked in accordance with the provisions of the
Code of Organization and Civil Procedure or until such time as the
arbitral tribunal by an award given for that purpose shall order the
party issuing the precautionary act to withdraw the same and issue
the relative counter-warrant.
Cap. 12.
Organization and Civil Procedure the time established therein
within which the action is to be instituted in respect of the right
stated in the precautionary act issued shall be of twenty days from
the filing of the judicial act whereby the court is requested to issue
the precautionary act. The provisions of the said Code for the
extension of the said time shall also apply.
(4) Action as is referred to in subarticle (3) shall be deemed to
have been taken when the arbitration proceedings are commenced.
For the purpose of this subarticle arbitration proceedings shall be
deemed to have commenced on the date referred to in article 17(2).
(5) The party at whose request a precautionary act has been
issued in accordance with this article shall, within the time
specified in subarticle (3), file a note in the records of the
proceedings for the issue of the said precautionary act together with
a certificate by the registrar showing that he has commenced
arbitration proceedings in accordance with subarticle (4).
(6) Unless otherwise agreed by the parties, the arbitral tribunal
  16      CAP. 387. ħ                   ARBITRATION
may, at the request of a party, order any party to take such interim
measures of protection as the tribunal may consider necessary in
respect of the subject matter in dispute. The arbitral tribunal may
require any party to provide adequate security in connection with
such measures.
(7) The court may on the application of any party order the
enforcement of any measure referred to in subarticle (6) and shall
have all ancillary powers to amend or revoke such orders after
hearing the parties and the arbitral tribunal as it deems necessary.
Cap. 12. (8) The Board established under article 29 of the Code of
Organization and Civil Procedure may make rules concerning all
matters relating to the issue of precautionary acts and other such
orders when they relate to arbitral proceedings.
Experts. 39. (1) The arbitral tribunal may appoint one or more experts
to report to it, in writing, on specific issues to be determined by the
tribunal. A copy of the expert’s terms of reference, established by
the arbitral tribunal, shall be communicated to the parties.
(2) The parties shall give the expert any relevant information or
produce for his inspection any relevant documents or goods that he
may require of them. Any dispute between a party and such expert
as to the relevance of the required information or production shall
be referred to the arbitral tribunal for decision.
(3) Upon receipt of the expert’s report, the arbitral tribunal
shall communicate a copy of the report to the parties who shall be
given the opportunity to express, in writing, their opinion on the
report. A party shall be entitled to examine any document on which
the expert has relied in his report.
(4) At the request of either party the expert, after delivery of
the report, may be heard at a hearing where the parties shall have
the opportunity to be present and to interrogate the expert. At this
hearing either party may present expert witnesses in order to testify
on the points at issue. The provisions of article 36 shall be
applicable to such proceedings.
Default. 40. (1) If within the period of time fixed by the arbitral
tribunal the claimant has failed to communicate his claim without
showing sufficient cause for such failure, the arbitral tribunal shall
issue an order for the termination of the arbitral proceedings. If,
within the period of time fixed by the arbitral tribunal, the
respondent has failed to communicate his statement of defence
without showing sufficient cause for such failure, the arbitral
tribunal shall order that the proceedings continue.
(2) If one of the parties, duly notified under this Part, has to
appear at a hearing, fails to do so without showing sufficient cause
for such failure, the arbitral tribunal may proceed with the
arbitration.
(3) If one of the parties duly invited to produce documentary
evidence, fails to do so within the established period of time,
without showing sufficient cause for such failure, the arbitral
tribunal may make the award on the evidence before it.
ARBITRATION ġ CAP. 387.        17
Closure of 
hearings.
41. (1) The arbitral tribunal may enquire of the parties if they
have any further proof to offer or witnesses to produce or
submissions to make and, if there are none, it shall declare the
hearings closed. 
(2) The arbitral tribunal may, if it considers it necessary owing
to exceptional circumstances, decide, on its own motion or upon
application of a party, to reopen the hearings at any time before the
award is made.
  Waiver of rules.
under, this Part has not been complied with and yet proceeds with
the arbitration without promptly stating his objection to such non-
compliance, shall be deemed to have waived its right to object.
Decisions.
decision of the arbitral tribunal shall be made by a majority of the
arbitrators.
(2) In the case of questions of procedure, when there is no
majority or when the arbitral tribunal so authorises, the presiding
arbitrator may decide on his own, subject to revision, if any, by the
arbitral tribunal.
Form of the award, 
interim, 
interlocutory or 
partial award.
Amended by:
XVIII.1999.16;
XXXI. 2002.240.
44. (1) Unless otherwise agreed between the parties, the
arbitral tribunal may make more than one award at different times
on different aspects of the matters to be determined. The arbitral
tribunal may make an award relating - 
( a ) to an issue affecting the whole claim, or
( b ) to a part only of the claims or counterclaims submitted
to it for decision,
and shall also be entitled to make interim and/or interlocutory awards .
(2) The award shall be in writing and shall be deemed to be
delivered at the place agreed by the parties as the place of
arbitration, or, in the absence of agreement, determined by the
arbitral tribunal.
(3) The arbitral tribunal shall state the reasons upon which the
award is based, unless the parties have agreed that no reasons are to
be given.
(4) An award shall be signed by the arbitrators and it shall
contain the date on which and the place where the award was
deemed to have been made. Where there are three arbitrators and
one of them fails to sign, the award shall state the reason for the
absence of the signature. 
(5) The award may be made public only with the consent of
both parties.
(6) Copies of the award signed by the arbitrators shall be
communicated to the parties by the arbitral tribunal.
(7) An award is final when it settles all or part of the merits of
an issue, is susceptible of immediate implementation and is not
preparatory to another stage in the proceedings or otherwise has the
effect of bringing the proceedings to an end.
  18      CAP. 387. ħ                   ARBITRATION
(8) The arbitral tribunal shall immediately and in any case not
later than twenty days from the date referred to in subarticle (4),
present any final awards together with all partial, interim and
interlocutory awards not already registered to the registrar for
registration by the Centre and shall comply with the relevant
provisions of this Act and the requirements of registration issued
by the Centre.
(9) Subject to recourse being made against an award in terms of
article 69A,  final awards shall be binding on the parties, and the
parties shall carry out such awards without delay.
Applicable law, 
amiable 
compositeur.
 45. (1) The arbitral tribunal shall apply, subject to the
provisions of this Act, the law designated by the parties as
applicable to the substance of the dispute. Failing such designation
by the parties, the arbitral tribunal shall apply Maltese law
including the rules of Maltese law relative to the conflict of laws.
(2) The arbitral tribunal shall decide as  amiable compositeur  or
ex aequo et bono  only if the parties have expressly authorised the
arbitral tribunal to do so.
(3) In all cases, the arbitral tribunal shall decide in accordance
with the terms of the contract and shall, if relevant, take into
account the usages of the trade applicable to the transaction.
(4) Unless otherwise agreed to by the parties or otherwise
provided for in or under this Act, the arbitral tribunal may conduct
the arbitration in such manner it considers appropriate. The power
conferred upon the arbitral tribunal includes the power to determine
the admissibility, relevance, materiality and weight of any
evidence.
Settlement or other 
grounds for 
termination.
Amended by:
XXXI. 2002.241.
46. (1) If before the award is made, the parties agree on a
settlement of the dispute, the arbitral tribunal shall either issue an
order for the termination of the arbitral proceedings or, if requested
by both parties and accepted by the arbitral tribunal, record the
settlement in the form of an arbitral award on agreed terms. The
arbitral tribunal is not obliged to give reasons for such an award.
(2) If before the award is made, the continuation of the arbitral
proceedings becomes unnecessary or impossible for any reason not
mentioned in subarticle (1), the arbitral tribunal shall inform the
parties of its intention to issue an order for the termination of the
proceedings. The arbitral tribunal shall have the power to issue
such an order unless a party raises justifiable grounds for objection.
(3) Copies of the order for termination of the arbitral
proceedings or of the award on agreed terms, signed by the
arbitrators, shall be communicated by the arbitral tribunal to the
parties and to the registrar. Where an arbitral award on agreed
terms is made, the provisions of article 44(2) and (4) to (8) shall
apply.
(4) The provisions of this article shall also apply in case the
parties resolve a dispute which may have arisen between them by
mediation, conciliation or any other means.   In such a case the
person assisting in the resolution of the dispute may, with the
ARBITRATION ġ CAP. 387.        19
consent of both parties, act as the arbitrator for the purpose of
registering the agreement reached between them in terms of this
Act and, when registered, such agreement shall be treated for all
intents and purposes as a registered award.
(5) Where the parties resolve a dispute as is mentioned in
subarticle (4) and the person whose services may have been used in
resolving the dispute is unable or unwilling to act in terms of this
article, the Centre may on the joint application of the parties to the
agreement appoint an arbitrator for such purpose:
Provided that, with the consent of the parties, the Registrar
may provide support to the parties in such cases by carrying out the
registration functions of an arbitrator in accordance with rules
which may be made by the Centre from time to time.
Interpretation of 
the award.
Amended by:
XXXI. 2002.242.
47. (1) Within fifteen days from the receipt of the award,
either party, with notice to the other party, may request that the
arbitral tribunal give an interpretation of the award.
(2) The interpretation shall be given in writing within forty-
five days after the receipt of the request. The interpretation shall
form part of the award, and the provisions of article 44(2) to (8)
shall apply.
Correction of the 
award.
Amended by:
XXXI. 2002.243.
48. (1) Within fifteen days from the receipt of the award,
either 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 of similar nature. The
arbitral tribunal may within thirty days after the communication of
the award, make such corrections on its own initiative.
(2) Such corrections shall be in writing, and the provisions of
article 44(2) to (8) shall apply.
Additional award.
Amended by:
XXXI. 2002.244.
49. (1) Within fifteen days after the receipt of the award,
either party, with notice to the other party, may request the arbitral
tribunal to make an additional award as to claims presented in the
arbitral proceedings but omitted from the award.
(2) If the arbitral tribunal considers the request for an
additional award to be justified and considers that the omission can
be rectified without any further hearings or evidence, it shall
complete its award within forty-five days from the receipt of the
request.
(3) When an additional award is made the provisions of article
44(2) to (8) shall apply.
Costs.
award. The term "costs" includes only:
( a ) the fees of the arbitral tribunal to be stated separately
as to each arbitrator and to be fixed by the tribunal
itself in accordance with article 51;
( b ) the travel and other expenses incurred by the
arbitrators;
  20      CAP. 387. ħ                   ARBITRATION
( c ) the costs of expert advice and of other assistance
required by the arbitral tribunal;
( d ) the travel and other expenses of witnesses to the extent
such expenses are approved by the arbitral tribunal;
( e ) the costs for legal representation and assistance of the
successful party if such costs were claimed during the
arbitral proceedings, and only to the extent that the
arbitral tribunal determines that the amount of such
costs is reasonable; and
( f ) any fees and expenses payable to the Centre.
Tariff of fees.
Substituted by:
XVIII.1999.17.
51. The arbitral tribunal shall determine fees and costs in
accordance with such tariff of fees as shall be made by the Centre
from time to time. 
Costs in principle 
to be borne by 
unsuccessful party.
52. (1) Except as provided in subarticle (2), the costs of
arbitration shall in principle be borne by the unsuccessful party.
However, the arbitral tribunal may apportion such costs between
the parties if it determines that apportionment is reasonable, taking
into account the particular circumstances of the case.
(2) With respect of the costs of legal representation and
assistance referred to in paragraph ( e ) of article 50, the arbitral
tribunal, taking into account the particular circumstances of the
case, shall be free to determine which party shall bear such costs or
may apportion such costs between the parties if it determines that
apportionment is reasonable.
(3) When the arbitral tribunal issues an order for the
termination of the arbitral proceedings or makes an award on
agreed terms, it shall in the text of that order or award, fix the costs
of arbitration referred to in article 50 and article 51.
(4) No additional fees may be charged by an arbitral tribunal
for interpretation or correction or completion of its award under
articles 47 to 49.
Deposit of costs.
Amended by:
XVIII.1999.18.
 53. (1) The arbitral tribunal, on its establishment, may request
each party to deposit with the Centre an equal sum between them as
an advance payment for the costs referred to in paragraphs ( a ), ( b )
and ( c ) of article 50.
(2) During the course of the arbitral proceedings the arbitral
tribunal may request from the parties supplementary deposits to
cover further costs.
(3) The arbitral tribunal shall fix the amounts of any deposits
or supplementary deposits only after consultation with the Centre
which may make to the arbitral tribunal any comments which it
deems appropriate concerning the amount of such deposits and
supplementary deposits.
(4) If the required deposits are not paid in full within thirty
days from the receipt of the request, the arbitral tribunal shall so
inform the parties in order that any one of them may make the
required payment. If such payment is not made, the arbitral tribunal
may order the suspension or termination of the arbitral
ARBITRATION ġ CAP. 387.        21
proceedings.
(5) After the award has been made, the arbitral tribunal shall
render an account to the parties of the deposits received and return
to the parties any unexpended balance.
Place of arbitral 
proceedings.
54. (1) Unless the parties agree otherwise, arbitral
proceedings conducted under this Part of this Act shall be held at
the premises provided by the Centre.
(2) The arbitral tribunal may meet at any place it deems
appropriate for the inspection of goods, other property or
documents. The parties shall be given sufficient notice to enable
them to be present at such inspection.
PART V
International Commercial Arbitration
Model Law.
the Laws of Malta and shall be enforceable as such.
(2) In the Model Law:
"State" means Malta and any foreign country;
"this state" means Malta.
Interpretation.
reference may be made:
( a ) to the works of the United Nations Commission on
International Trade Law; and
( b ) to the preparatory documents of the Model Law.
Cap. 249.
(2) subarticle (1) does not affect the application of the
Interpretation Act for the purposes of interpreting this Act.
Article 6 of the 
Model Law.
57. The functions referred to in Article 6 of the Model Law
shall be performed by: 
( a ) the chairman in respect to Articles 11(3), 11(4), 13(3)
and 14; and
( b ) the Court of Appeal in respect to Articles 16(3), 34(2)
and 35(1).
Articles 34 and 36 
of the Model Law.
58. With reference to Articles 34(2)( b ) (ii) and 36(1)( b ) (ii) of
the Model Law, for the purposes of the said Articles it is hereby
declared that an award is in conflict with the public policy of Malta
if -
( a ) the award was induced or affected by fraud or
corruption; or
( b ) a breach of the rules of natural justice occurred in
connection with the making of the award.
  22      CAP. 387. ħ                   ARBITRATION
Chapter VIII of the 
Model Law not to 
apply. 
Substituted by:
XVIII.1999.19.
59. Part VII of this Act on the Recognition and Enforcement of
Foreign Awards shall apply to foreign arbitration awards and
Chapter VIII of the Model Law shall not apply.
Settlement of 
dispute otherwise 
than in accordance 
with Model Law.
Amended by:
XVIII.1999.20.
60. If the parties to an arbitration agreement falling under this
Part of this Act have (whether in the agreement or in any other
document in writing) agreed that any dispute that has arisen or may
arise between them is to be settled otherwise than in accordance
with the Model Law, and the parties have not chosen the rules that
are to govern the arbitration, then the provisions of Part IV of this
Act shall apply.
Optional 
registration of 
international 
awards.
Substituted by:
XVIII.1999.21;
XXXI. 2002.245.
61. (1)  Registration with the Centre of an international award
shall not be required for the validity of the award .
(2) Where in accordance with article 60, the provisions of Part IV
of the Act apply, the requirement in article 17(1) with regard to filing
of a notice of arbitration for registration by the Centre shall not apply
and the relevant provisions of the Model Law shall apply.
(3) Notwithstanding subarticle (1), an international award may be
registered with the Centre as provided in article 72 on the application
of any interested party and against payment of the applicable fee;
provided that in such a case article 72(4)( a ) and article 72(6) shall not
apply and the following subarticles (4) and (5) shall apply in their
stead.
(4) The Registrar shall not register an international award prior to
the lapse of at least three months from the date of the award unless the
parties confirm in writing that they do not intend to take any recourse
against the award in terms of applicable law.
(5) On the lapse of the period stated in subarticle (4), the Registrar
shall not register an international award if he is notified that recourse
against an award has been taken by any party to the arbitration
proceedings, until such time as he is notified of the outcome of such
recourse.  Any party to the proceedings who may take recourse against
an award shall notify the Centre in writing of any recourse taken, in
Malta or overseas, within fifteen days of such event.
(6) When the parties to an international arbitration agreement
have expressly reserved recourse in terms of article 69A(3), any appeal
shall be made within the period stated in article 34(3) of the Model
Law.
Cap. 12.
(7) An international award given pursuant to Part V shall, upon its
registration with the Centre as provided in this article, constitute an
executive title for the purposes of Title VII of Part I of Book Second of
the Code of Organization and Civil Procedure.
(8) Where no party has registered the award with the Centre in
terms of this article, any party relying on an international award may at
any time apply to the Court of Appeal for recognition and enforcement
of the said award in accordance with Part VIII of the Model Law and
the provisions in that part shall apply  mutatis mutandis  to any appeal
which may have been reserved in terms of article 69A(3).
Cap. 12.
(9) On application by any party, the Court of Appeal may,
notwithstanding the provisions of the Code of Organization and Civil
ARBITRATION ġ CAP. 387.        23
Procedure or the Model Law, order the provisional enforcement of an
international award in whole or in part, and may issue all such related
and ancillary orders as it may deem fit.
Article 17 of the 
Model Law.
Amended by:
XVIII.1999.22.
62. Notwithstanding   the provisions of article 59, Chapter VIII
of the Model Law applies to orders by an arbitral tribunal made
under Article 17 of the Model Law requiring a party -
( a ) to take an interim measure of protection; or
( b ) to provide security in connection with such a measure;
as if any reference in that Chapter to an arbitral award or an award
were a reference to such an order.
Interest up to 
making of award.
63. (1) Unless the parties to an arbitration agreement falling
under this Part of this Act have otherwise agreed, when an arbitral
tribunal determines to make an award for the payment of money
(whether on a claim for a liquidated or an unliquidated amount), the
tribunal may, subject to subarticle (2), include in the sum for which
the award is made interest at such a reasonable rate as the tribunal
may determine on the whole or any part of the money, and for the
whole or any part of the period between the date on which the cause
of action arose, and the date on which the award is made.
(2) Subarticle (1) does not - 
( a ) authorise the awarding of interest upon interest;
( b ) apply in relation to any amount upon which interest is
payable as of right whether by virtue of an agreement
or otherwise; and
( c ) affect the damages that may be recoverable as a result
of a bill of exchange being dishonoured.
Interest on debt 
under award.
64. Unless the parties to an arbitration agreement falling under
this Part of this Act have otherwise agreed, where an arbitral
tribunal makes an award for the payment of money, the tribunal
may direct that interest at such reasonable rate as the tribunal may
determine, is payable, from the date referred to in Article 31(3) of
the Model Law or such later day as the tribunal specifies.
Costs and fees.
Amended by:
XVIII.1999.23.
65. (1) Saving the provisions of article 79, unless the parties
to an arbitration agreement falling under this Part of this Act have
otherwise agreed, the arbitral tribunal shall fix the costs and fees of
arbitration in the award in accordance with article 50, 51, 52 and 53
mutatis mutandis.
(2) If no provision is made by an award with respect to the
costs and fees of the arbitration, a party to the arbitration agreement
may, within thirty days after receiving the award, apply to the
arbitral tribunal for directions as to the payment of the said costs
and fees, and thereupon the tribunal shall, after hearing any party
who wishes to be heard, amend the award in accordance with
article 65(1).
Liability of 
arbitrator.
66. Article 20(5) applies to any arbitrator involved in
arbitrations held under this Part of this Act.
  24      CAP. 387. ħ                   ARBITRATION
Representation in 
proceedings.
67. With the agreement of the parties or at the request of a
party, as the case may be, where the arbitral tribunal, in accordance
with the Model Law, holds oral hearings or proceedings on the
basis of documents or other materials, article 18 shall, without
prejudice to the Model Law, apply.
Application of this 
Part.
68. This Part does not apply in relation to an international
commercial arbitration between parties to an arbitration agreement
that was concluded before the commencement of this Part of this
Act unless the parties have otherwise agreed.
PART VI
Powers of the Court with respect to Arbitrations
Extent of court 
intervention.
Cap. 319.
69. Saving the provisions of the Constitution and of the
European Convention Act, in matters governed by this Act, no
court shall intervene or have jurisdiction in any matter except
where so provided for in this Act.
Executive title.
Added by:
XXXI. 2002.246.
Cap. 12.
69A. (1) An award given pursuant to an arbitration agreement
in accordance with Part IV of this Act, shall upon its registration by
the Centre, as provided in article 72, constitute an executive title
for the purposes of Title VII of Part I of Book Second of the Code
of Organization and Civil Procedure.
(2) Recourse against an arbitral award delivered under Part IV
may be made to the Court of Appeal by application either -
(i) praying that the award be set aside in accordance
with the provisions of article 70, or
(ii) appealing on a point of law in accordance with
article 70A.
(3) Recourse against an arbitral award delivered under Part V
may be made to the Court of Appeal by an appeal on a point of law
only if the parties to the arbitration agreement have expressly
agreed that such right of appeal is available to the parties in
addition to the rights of recourse as contemplated in article 34 of
the Model Law. In such cases the provisions of articles 61(5), 70A,
70B and related articles shall apply.
(4) Recourse against an award may also be made in accordance
with any procedure of appeal or review which may be expressly agreed
to by the parties in the arbitration agreement.
(5) The rights of recourse specified in the subarticles (2) and (3)
shall arise, to the extent available in terms of the Act and the
arbitration agreement, upon the exhaustion of any contractual process.
All time limits specified in this Act for applications under articles 70
and 70A shall commence from such time as the result of the
contractual process is notified, is otherwise completed or lapses.
(6) Where any law provides for an arbitration board, tribunal or
other authority and contemplates a specific right of appeal, review or
other recourse against its awards, the provisions of this Act with
regard to recourse against awards shall not apply and the provisions of
such other law shall alone regulate the right of recourse against awards
ARBITRATION ġ CAP. 387.        25
of such board, tribunal or other authority.
Cap. 12.
(7) Notwithstanding that registration of an award may not yet
have been effected in terms of article 61(4) or 72(4)( a ), the Court
of Appeal may, on the application of any party and notwithstanding
any provisions of the Code of Organization and Civil Procedure,
order the provisional enforcement of the award in whole or in part,
and may issue all related and ancillary orders as it may deem fit.
Awards.
Amended by:
XVIII.1999.24.
Substituted by:
XXXI. 2002.247.
70. (1) Subject to the provisions of article 71, the Court of
Appeal shall only determine that an award shall be set aside if-
( a ) the applicant proves to the satisfaction of the Court of
Appeal that -
(i) a party to the arbitration agreement was under
some incapacity to enter the arbitration
agreement; or that the said agreement was not
valid under the law to which the parties have
subjected it; or
(ii) the party against whom the award is invoked was
not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was
otherwise impeded from presenting his case; or
(iii) the award deals with a dispute not contemplated
by or not falling within the terms of the
submission to arbitration, or it contains
decisions on matters beyond the scope of the
submission to arbitration:
Provided that if decisions on matters submitted
to arbitration can be separated from those not so
submitted, only that part of the award which
contains decisions on matters not submitted to
arbitration may be set aside; or
(iv) the composition of the arbitral tribunal or the
arbitral procedure was not in accordance with
the agreement of the parties, unless such
agreement was in conflict with a provision of
this Act from which the parties cannot derogate,
or, failing such agreement, was not in
accordance with this Act;
( b ) the Court of Appeal finds that -
(i) the subject-matter of the dispute is not capable
of settlement by arbitration under the Laws of
Malta; or
(ii) the award is in conflict with the public policy of
Malta.
(2) The application referred to in article 69A(2) shall be made
within fifteen days from the notification to the applicant of the
award in accordance with this Act, and the applicant shall notify
the arbitrators and the Centre with a copy of the application as soon
as practicable but not later than fifteen days after the application is
filed.
  26      CAP. 387. ħ                   ARBITRATION
Cap. 12.
(3) For the purposes of this article and articles 57 and 73, the
Court of Appeal shall be composed in the manner provided in article
41(6) of the Code of Organization and Civil Procedure.
(4) All applications under this article shall be held  in   camera  and
only the parties thereto and their advocates and legal procurators shall
be allowed in the court during the hearing.
(5) The judgment of the court shall preserve the confidentiality of
the arbitration and shall only reveal such facts as may be necessary to
make the same intelligible and enforceable by the parties.
(6) The cost of the appeal shall be in the discretion of the Court of
Appeal and shall be a sum fixed by the Registrar, Civil Courts and
Tribunals (Civil Section) or the Registrar, Gozo Courts and Tribunals
(Civil Section), as the case may be.
Cap. 12. (7) The Board established under article 29 of the Code of
Organization and Civil Procedure may make rules concerning
applications to the Court of Appeal under this article and under
article 70A and article 73, and prescribe the fees to be paid on such
applications.
Appeal on point of 
law.
Added by:
XXXI. 2002.248.
70A. (1) A party to arbitral proceedings may appeal to the
Court of Appeal on a point of law arising out of a final award made
in the proceedings unless -
( a ) the parties have expressly excluded such a right to
appeal in the arbitration agreement or otherwise in
writing; or
( b ) notwithstanding anything stated in the arbitration
agreement, the parties have expressly agreed that no
reasons are to be given in the award in accordance with
article 44(3).
(2) When an appeal is filed, the applicant shall notify the
arbitrators and the Centre with a copy of the application as soon as
practicable but not later than fifteen days after the appeal is filed.
(3) The Court of Appeal shall only consider the appeal if the
Court is satisfied -
( a ) that the determination of the point of law will
substantially affect the rights of one or more of the
parties;
( b ) that the point of law is one which the tribunal was
asked to determine or otherwise relied upon it in the
award;
( c ) that on the basis of the findings of fact in the award the
decision of the tribunal on the point of law is  prima
facie  open to serious doubt; and
( d ) that based on a review of the application, any response
and the award, the appeal does not appear dilatory and
vexatious,
and in all other cases the Court shall dismiss the appeal.
ARBITRATION ġ CAP. 387.        27
Identification of 
point of law.
Added by:
XXXI. 2002.248.
70B.  (1) An appeal under article 70A shall identify the point of
law to be determined and shall outline the interpretation which the
applicant alleges is the correct interpretation on the point of law
identified.
(2) An appeal must be brought within fifteen days of the receipt
of the final award  or if there has been any arbitral process of
appeal or review, of the date when the party was notified of the
result of that process or the process was otherwise completed or the
time for it has lapsed.
(3) The provisions of article 70(3), (4), (5) and (6) shall apply
to appeals made under article 70A.
Resumption of 
arbitral 
proceedings.
Amended by:
XXXI. 2002.249.
71. (1) The Court of Appeal, when asked to set aside an
award, may, where appropriate, and when so required by a party,
suspend the setting aside proceedings for a period of 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 tribunal’s opinion will eliminate the grounds for
setting aside.
(2) The Court of Appeal may, on an appeal under article 70A - 
( a ) confirm the award,
( b ) vary the award,
( c ) remit the award to the tribunal, in whole or in part, for
reconsideration in the light of the Court’s
determination, or
( d ) set aside the award in whole or in part and itself
determine the matter. 
(3) The Court of Appeal shall not itself determine the matter on
which it has sustained an application  unless it is satisfied that it
would be inappropriate to remit matters in question to the tribunal
for reconsideration.
Condition for 
application.
Added by:
XXXI. 2002.250.
71A. (1) The following provisions shall apply to an application
to set aside or an appeal under article 70 or 70A.
(2) An application may not be brought if the applicant or appellant
has not first exhausted -
( a ) any available contractual process of appeal or review;
and
( b ) any available recourse under articles 47 (interpretation of
the award), 48 (correction of the award) or 49 (additional
award).
(3) Any request made in terms of articles 47, 48 or 49 shall
have the effect of interrupting the time-limits for recourse against
an award specified in article 70(4) or article 70B(2). The period for
recourse established in the said articles shall run from the date on
which any order made in terms of the said articles 47, 48 and 49 is
communicated to the party.
(4) The rights of recourse as provided in article 70 or 70A are
mutually exclusive and cannot both be exercised simultaneously and
  28      CAP. 387. ħ                   ARBITRATION
an appeal on a point of law shall exclude the right to apply to set aside
the award; provided that when a party has applied to the Court to set
aside an award,  he may,  in subsidium , appeal on points of law
provided he does so in the same application.
(5) If on an application to set aside or on an appeal it appears to
the Court that the award does not contain the tribunal’s reasons or does
not set out the tribunal’s reasons in sufficient detail to enable the court
properly to consider the application or appeal, the court may request
the tribunal to give an interpretation of the award in accordance with
the terms of article 47(2).
(6) In making an order under the preceding subarticle the court
may make an order on costs arising from its order.
Condition for 
application: 
supplemental 
provisions.
Added by:
XXXI. 2002.250.
71B. (1) An application for setting aside or an appeal may only
be made in relation to final awards as defined in article 44(6).
(2) Where several issues in an arbitration have been determined
by separate awards, recourse against such awards may only be taken
after the final award and within the time limits stated in this Act, to be
reckoned from the date of such final award and in such recourse
express mention shall be made of the awards against which recourse is
taken:
Provided that recourse may be taken against such separate
awards before the final award  by leave of the arbitral tribunal; such
request for leave to take recourse shall be made in writing to the
arbitral tribunal and copied to the Centre within six days from the date
on which the award is communicated to the party.
(3) Recourse cannot be taken against interim, interlocutory or
partial awards except after the final award and together with recourse
which may be taken against such final award:
Provided that the provisions of this article shall apply in
full to partial awards which constitute final awards on the issue
thereby determined, in which case the provisions of subarticle (2)
shall apply.
Registration with 
and by the Centre.
Substituted by:
XVIII.1999.25;
XXXI. 2002.251.
72. (1) Where the registration of any final award or document
under this Act is required to be made with the Centre, the award or
document, or an authentic copy thereof, shall be deposited with the
registrar together with such fee as may from time to time be
prescribed for such registration.
(2) The registrar shall refuse to register an award or a
document if the same does not comply with any of the provisions of
this Act or of the rules made by the Centre relative to such Act.
(3) In the case of a domestic arbitration, conducted under Part
IV of this Act, the provisions of article 38(2), (3), (4) and (5),
article 70, article 70A, article 70B, article 71 and article 71A shall
only apply and the proceedings shall only be valid where at any
time prior to the communication of the award in accordance with
article 44(4), a notice of arbitration is registered with the Centre in
accordance with article 17.
(4) ( a )   The Registrar shall not register an award prior to the
ARBITRATION ġ CAP. 387.        29
lapse of thirty days from the date on which the award
has been notified to the parties to an arbitration or if
the Centre is notified of any recourse against an award
taken by any party to the arbitration proceedings in
terms of this part of this Act.
( b ) Where, following any application in accordance with
article 70 or 70A, the Court does not uphold the
application, the judgement of the Court of Appeal shall
be registered with the Centre together with the award
being registered on the request of the party seeking
registration.
(5) Upon its registration with the Centre the award shall be
final and binding and, furthermore, may not be challenged.
(6) Any application under articles 70 or 70A which the Court of
Appeal determines to be frivolous or vexatious shall render the party
making such challenge or appeal liable to pay the party requesting it a
penalty of not less than one hundred liri and not more than five
thousand liri, to be determined by the Court of Appeal .
Refusal to register 
document.
Substituted by:
XVIII.1999.26.
73. (1) Where the registrar refuses the registration of any
document, whether upon an objection or otherwise, the party
requesting registration may, within thirty days from such refusal,
request the Court of Appeal, by application, to order the registrar to
accept such registration, and the decision of the said court shall be
final and binding. Such application shall be served on the other
parties to the arbitration and on the registrar. 
(2) The fact that a document has been accepted for registration
by the Centre shall not preclude the challenge of the validity of
such document under any provision of this Act.
PART VII
Recognition and Enforcement of Foreign Awards
Enforcement of 
foreign arbitration 
awards.
Amended by:
XVIII.1999.27.
74. (1) Saving the relevant articles of this Act, foreign
arbitration awards, to which the treaties set out in the Second
Schedule are applicable (subject to such reservations or
declarations as may have been made by Malta on its becoming a
party to such treaties and as are contained in the Second Schedule),
shall upon their registration by the Centre be enforced by the courts
of Malta in the same manner as if such awards were delivered under
Part IV of this Act.
(2) The Minister may by notice in the Gazette add to, delete
from or substitute the list of treaties to which Malta is a party and
contained in the Second Schedule to this Act.
(3) A certificate signed by the Minister responsible for foreign
affairs, or by any public officer designated by the said Minister for
such purpose by notice in the Gazette, purporting that, at the time
specified in the certificate, any state has signed and ratified or has
denounced, or has taken any other action under the treaties listed in
the schedules to this Act in respect of the state specified in the
  30      CAP. 387. ħ                   ARBITRATION
certificate, shall be conclusive evidence before any court or other
authority of the facts therein stated.
Arbitration under 
other laws.
Amended by:
XVIII.1999.28.
75. (1) For the purposes of this Act, any dispute   required to be
determined by arbitration under any other law, foreign or domestic,
the provisions of such law shall, unless they provide for arbitration
by a board, tribunal or other authority set up for the purpose, be
read as if that other law were an arbitration agreement.
(2) Any award delivered in terms of subarticle (1) shall be
recognised and enforced by the courts of Malta upon its registration
by the Centre, in the same manner as if such award were delivered
under Part IV of this Act.
Settlement of 
international 
investment 
disputes.
76. * (1) Awards delivered pursuant to the Convention on the
Settlement of Investment Disputes between States and Nationals of
other States, which convention was opened for signature in
Washington on the 18th March, 1965, (which convention is
hereafter in this article referred to as "the Convention" and is
reproduced in the Third Schedule to this Act) shall be recognised
and enforced by the courts of Malta as if such awards were final
judgments under the laws of Malta.
(2) The provisions of subarticle (1) shall apply only to such
awards on disputes submitted to arbitration by the parties thereto in
accordance with the Convention and not otherwise excluded in
accordance with the same Convention.
(3) For the purposes of Article 54 of the Convention, the
competent authority shall be the Centre.
(4) The Prime Minister may by order in the Gazette and
notwithstanding any other law, make provision to give effect to any
part of the Convention, and without prejudice to the generality of
the foregoing may by such order grant such immunities and
exemptions from any law as may be required by the Convention.
PART VIII
Miscellaneous
Language of 
schedules.
77. In case of any conflict between the Maltese and English
text of any of the First, Second and Third Schedules to this Act, the
English text shall prevail.
Transitory 
provision.
78. Subject to article 68, this Act applies to every arbitration
agreement, whether made before or after the commencement of this
Act, and to every arbitration under such an agreement:
  Provided that where arbitration proceedings had been
commenced before the date of commencement of this Act and are
still pending on that date then, notwithstanding any thing contained
in this Act, those proceedings shall continue to be governed by the
law applicable thereto before the commencement of this Act unless
all the parties to those proceedings agree that this Act shall apply
thereto with effect from the date of the agreement whereupon this
*Not yet in force.
ARBITRATION ġ CAP. 387.        31
Act shall apply accordingly.
Arbitration 
chambers.
Added by:
XVIII.1999.29.
Amended by:
XXXI. 2002.252.
Cap. 386.
79. (1) Notwithstanding any provision of this or any other
law, the provisions of this article shall have effect with regard to
the matters regulated thereby. 
(2) Any individual, or individuals, whether considered to be
resident in Malta or not for the purposes of any law, may constitute
an Arbitration Chamber in the form of a limited liability company
under the Companies Act: so however that the provisions of the
said Act shall have effect in relation to an Arbitration Chamber as
amended, modified or substituted by the provisions of this article.
All such companies shall comprise as part of their name the words
"Arbitration Chamber".
(3) The objects of an Arbitration Chamber shall be limited to
providing services of representation referred to in article 18 to
parties in international commercial arbitration under Part V of this
Act, and services as arbitrators in such arbitration:  Provided that
such arbitrations are administered by the Centre in accordance with
any applicable rules made by the Centre in accordance with article 10.
An Arbitration Chamber shall not receive any gains, profits or
income whatsoever except fees for services rendered as aforesaid,
but the receipt of incidental income connected with the said
services shall not be deemed to infringe this rule.
Cap. 386.
(4) Each member of an Arbitration Chamber shall also be a
director thereof, and each director shall be responsible at law for
the services rendered by the Arbitration Chamber pursuant to
subarticle (3). On the death of a member or when such member is
disqualified from acting as a director of a company under the
provisions of article 142 of the Companies Act, the share belonging
to such member shall be redeemed, and if following such
redemption the Arbitration Chamber fails to meet the requirements
of the Companies Act regarding the constitution of a company, then
the Arbitration Chamber shall be liquidated.
(5) The Secretary of the Chamber shall be a person who, for an
uninterrupted period of three years, has been any of the following:
Cap. 12.
(i) a person holding the warrant of advocate under
the Code of Organization and Civil Procedure;
or
Cap. 281.
accountant or a certified public accountant and
auditor under the Accountancy Profession Act;
or
(iii) an associate, member, or fellow of a professional
institute or similar body recognised by the
Centre for the purposes of this article; or
(iv) is otherwise recognised by the Centre as a
person comparable to any of the persons
aforesaid.
(6) The liquidation of an Arbitration Chamber shall be carried
out by its secretary under the supervision of the Centre, and the
  32      CAP. 387. ħ                   ARBITRATION
Centre shall be entitled to:
(a) nominate a secretary solely for the purpose of this
subarticle, where the Arbitration Chamber does not
have a secretary or where the secretary of the
Arbitration Chamber is not properly conducting the
liquidation;
(b) declare that an Arbitration Chamber has been
liquidated and fully wound up, whereupon the
Arbitration Chamber shall be struck off the register by
the Registrar of Companies without the need of any
further formalities.
(7) An Arbitration Chamber shall be registered with the Centre
in accordance with such rules as may be made by the Centre for the
purposes of this subarticle and may not commence its activities
until it has been so registered. Registration shall be subject to such
annual or other fees as may be established by the Centre.
Cap. 364. (8) No duty shall be payable under the Duty on Documents and
Transfers Act on any document relating to any transaction in
relation to any share in an Arbitration Chamber.
Cap. 233. (9) The Exchange Control Act shall not apply to any matter
relating to the constitution of an Arbitration Chamber, or to any
transaction or operation whatsoever relating to an Arbitration
Chamber or to its shares.
Cap. 123. 
Cap. 372.
(10) For the purposes of the Income Tax Act and the Income
Tax Management Act, the rate of income tax chargeable upon any
distributions made by an Arbitration Chamber shall be that
contemplated in article 56(8) of the Income Tax Act, and a member
thereof if not resident in Malta receiving such a distribution shall
be entitled to the benefit contemplated in article 48(4)( a ) of the
Income Tax Management Act.
(11) The Centre may make rules for the better carrying out of
any of the provisions of this article and may, in particular, but
without prejudice to the generality of the foregoing, by any such
rules- 
( a ) provide for the registration of an Arbitration Chamber
in accordance with subarticle (7); and
( b ) regulate the conduct, duties and obligations of an
Arbitration Chamber.
Government 
authorised to 
accede to Treaties.
Added by:
XVIII.1999.29.
Cap. 304.
80. For the purposes of the Ratification of Treaties Act, the
Government is hereby authorised to accede to the treaties contained
in the Second and Third Schedules to this Act. 
Notification of 
awards to Director 
of Public Registry 
and Land 
Registrar.
Added by:
XXXI. 2002.253.
Cap. 12.
82. In the event of a final award which determines rights to
immovable property, the Registrar shall, upon registration, transmit a
certified copy of the award to the Director of the Public Registry and
to the Land Registrar and the provisions of articles 239 and 270 of the
Code of Organisation and Civil Procedure shall,  mutatis mutandis ,
apply to such awards.
ARBITRATION ġ CAP. 387.        33
Interest awards.
Added by:
XXXI. 2002.83.
83. Unless the parties to an arbitration agreement have otherwise
agreed in writing, articles 63 and 64 shall apply to any domestic
arbitration carried out under Part IV and to any international
arbitration where, in accordance with article 60, the said Part IV shall
apply.
  34      CAP. 387. ħ                   ARBITRATION
Amended by: FIRST SCHEDULE
XVIII.1999.30.
UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW: 
MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION *
( ADOPTED, JUNE 21, 1985 )
UNCITRAL Model Law on International Commercial Arbitration
( as adopted by the United Nations Commission on International Trade Law on 
21 June 1985 )
CHAPTER I. GENERAL PROVISIONS
Article 1. Scope of application †
(1) This law applies to international commercial ‡  arbitration, subject to any
agreement in force between this State and any other State or States.
(2) The provisions of this law, except articles 8, 9, 35 and 36, apply only if the
place of arbitration is in the territory of this State.
(3) An arbitration is international if:
( a ) the parties to an arbitration agreement have, at the time of the
conclusion of that agreement, their places of business in different
States; or
( b ) one of the following places is situated outside the State in which the
parties have their places of business:
(i) the place of arbitration if determined in, or pursuant to, the
arbitration agreement;
(ii) any place where a substantial part of the obligations of the
commercial relationship is to be performed or the place with
which the subject-matter of the dispute is most closely connected;
or
( c ) the parties have expressly agreed that the subject-matter of the
arbitration agreement relates to more than one country.
(4) For the purposes of paragraph (3);
( a ) if a party has more than one place of business, the place of business is
that which has the closest relationship to the arbitration agreement;
( b ) if a party does not have a place of business, reference is to be made to
his habitual residence.
(5) This Law shall not effect any other law of this State by virtue of which
*Reproduced from the Report from the United Nations Commission on International Trade Law on the work
of the eighteenth session  ( June 3-21, 1985 ) , U.N. General Assembly Official Records Fortieth Session,
Supplement No. 17  ( A/4O/17 ) , Annex I, pp. 81-93.
†Article Headings are for the reference purposes only and are not to be used for purposes of interpretation.
‡ The term "commercial" should be given a wide interpretation so as to cover matters arising from all
relationships of a commercial nature, whether contractual or not. Relationships of a commercial nature
include, but are not limited to, the following transactions: any trade transaction for the supply or exchange of
goods or services; distribution agreement; commercial representation or agency; factoring; leasing;
construction of works; consulting; engineering; licensing; investments; financing; banking; insurance;
exploitation agreement or concession; joint venture and other forms of industrial or business co-operation;
carriage of goods or passengers by air, sea, rail or road.
ARBITRATION ġ CAP. 387.        35
certain disputes may not be submitted to arbitration or may be submitted to
arbitration only according to provisions other than those of this Law.
Article 2. Definition and Rules of Interpretation
For the purposes of this Law:
( a ) "arbitration" means any arbitration whether or not administered by a
permanent arbitral institution;
( b ) "arbitral tribunal" means a sole arbitrator or a panel of arbitrators;
( c ) "court" means a body or organ of the judicial system of a State;
( d ) where a provision of this Law, except article 28, leaves the parties free
to determine a certain issue, such freedom includes the right of the
parties to authorise a third party, including an institution, to make that
determination;
( e ) where a provision of 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
of the parties, such agreement includes any arbitration rules referred to
in that agreement;
(f ) where a provision of this Law, other than in articles 25 ( a ) and 32 (2)
( a ), refers to a claim, it also applies to a counter-claim, and where it
refers to a defence, it also applies to a defence to such counter-claim.
Article 3. Receipt of written communications
(1) Unless otherwise agreed by the parties:
( a ) any written communication is deemed to have been received if it is
delivered to the addressee personally or if it is delivered at his place of
business, habitual residence or mailing address; if none of 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 of business, habitual residence or mailing address by registered
letter or any other means which provides a record of the attempt to
deliver it;
( b ) the communication is deemed to have been received on the day it is so
delivered.
(2) The provisions of this article do not apply to communications in court
proceedings.
Article 4. Waiver of right to object
 A party who knows that any provisions of 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 of time, shall be deemed to have waived his right to object.
Article 5. Extent of 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 of arbitration
assistance and supervision
The functions referred to in articles 11(3), 11(4), 13 (3), 14, 16 (3) and 34 (2) shall
be performed by.............ġEach State enacting this model law specifies the court,
  36      CAP. 387. ħ                   ARBITRATION
courts or, where referred to therein, other authority competent to perform these
functions.ħ
CHAPTER II. ARBITRATION AGREEMENT
Article 7. Definition and form of arbitration agreement
(1) "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 of a defined legal relationship, whether contractual or not. An
arbitration agreement may be in the form of an arbitration clause in a contract or in
the form of a separate agreement.
(2) The arbitration agreement shall be in writing. An agreement is in writing if
it is contained in a document signed by the parties or in an exchange of letters, telex,
telegrams or other means of telecommunication which provide a record of the
agreement, or in an exchange of statements of claim and defence in which the
existence of an agreement is alleged by one party and not denied by another. The
reference in a contract to a document containing an arbitration clause constitutes an
arbitration agreement provided that the contract is in writing and the reference is
such as to make that clause part of the contract.
Article 8. Arbitration agreement and substantive claim before court
(1) A court before which an action is brought in a matter which is the subject of
an arbitration agreement shall, if a party so requests not later than when submitting
his first statement on the substance of the dispute, refer the parties to arbitration
unless it finds that the agreement is null and void, inoperative or incapable of being
performed.
(2) Where an action referred to in paragraph (1) 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 of protection and for
a court to grant such measure.
CHAPTER III. COMPOSITION OF ARBITRAL TRIBUNAL
Article 10. Number of arbitrators
(1) The parties are free to determine the number of arbitrators.
(2) Failing such determination, the number of arbitrators shall be three.
Article 11. Appointment of arbitrators
(1) No person shall be precluded by reason of his nationality from acting as an
arbitrator, unless otherwise agreed by the parties.
(2) The parties are free to agree on a procedure of appointing the arbitrator or
arbitrators, subject to the provisions of paragraphs (4) and (5).
(3) Failing such agreement,
( a ) in an arbitration with three arbitrators, each party shall appoint one
arbitrator, and the two arbitrators thus appointed shall appoint the third
ARBITRATION ġ CAP. 387.        37
arbitrator; if a party fails to appoint the arbitrator within thirty days of
receipt of a request to do so from the other party, or if the two
arbitrators fail to agree on the third arbitrator within thirty days of their
appointment, the appointment shall be made, upon request of 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 of a party, by the
court or other authority specified in article 6.
(4) Where, under an appointment procedure agreed upon by the parties,
( a ) a party fails to act as required under such procedure, or
( b ) the parties, or two arbitrators, are unable to reach an agreement
expected of 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.
(5) A decision on a matter entrusted by paragraph (3) or (4) 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 of the arbitrator by the agreement of the parties and to such considerations
as are likely to secure the appointment of an independent and impartial arbitrator
and, in the case of a sole or third arbitrator, shall take into account as well the
advisability of appointing an arbitrator of a nationality other than those of the
parties.
Article 12. Grounds for challenge
(1) When a person is approached in connection with his possible appointment as
an arbitrator, he shall disclose any circumstances likely to give rise to justifiable
doubts as to his impartiality or independence. An arbitrator, from the time of his
appointment and throughout the arbitral proceedings, shall without delay disclose
any such circumstances to the parties unless they have already been informed of
them by him.
(2) An arbitrator may be challenged only if circumstances exist that give rise to
justifiable doubts as to his impartiality or independence, or if he does not possess
qualifications agreed to by the parties. A party may challenge an arbitrator appointed
by him, or in whose appointment he has participated, only for reasons of which he
becomes aware after the appointment has been made.
Article 13. Challenge procedure
(1) The parties are free to agree on a procedure for challenging an arbitrator,
subject to the provisions of paragraph (3).
(2) Failing such agreement, a party who intends to challenge an arbitrator shall,
within fifteen days after becoming aware of the constitution of the arbitral tribunal
or after becoming aware of any circumstances referred to in article 12 (2), send a
written statement of the reasons for the challenge to the arbitral tribunal. Unless the
challenged arbitrator withdraws from his office or the other party agrees to the
challenge, the arbitral tribunal shall decide on the challenge.
(3) If a challenge under any procedure agreed upon by the parties or under the
procedure of paragraph (2) is not successful, the challenging party may request,
  38      CAP. 387. ħ                   ARBITRATION
within thirty days after having received notice of 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
(1) If an arbitrator becomes  de jure  or  de facto  unable to perform his functions
or for other reasons fails to act without undue delay, his mandate terminates if he
withdraws from his office or if the parties agree on the termination. Otherwise, if a
controversy remains concerning any of these grounds, any party may request the
court or other authority specified in article 6 to decide on the termination of the
mandate, which decision shall be subject to no appeal.
(2) If, under this article or article 13 (2), an arbitrator withdraws from his office
or a party agrees to the termination of the mandate of an arbitrator, this does not
imply acceptance of the validity of any ground referred to in this article or article 12
(2).
Article 15. Appointment of substitute arbitrator
 Where the mandate of an arbitrator terminates under article 13 or 14 or because of
his withdrawal from office for any other reason or because of the revocation of his
mandate by agreement of the parties or in any other case of termination of his
mandate, a substitute arbitrator shall be appointed according to the rules that were
applicable to the appointment of the arbitrator being replaced.
CHAPTER IV. JURISDICTION OF ARBITRAL TRIBUNAL
Article 16. Competence of arbitral tribunal to rule on its jurisdiction
(1) The arbitral tribunal may rule on its own jurisdiction, including any
objections with respect to the existence or validity of the arbitration agreement. For
that purpose, an arbitration clause which forms part of a contract shall be treated as
an agreement independent of the other terms of the contract. A decision by the
arbitral tribunal that the contract is null and void shall not entail  ipso jure  the
invalidity of the arbitration clause.
(2) A plea that the arbitral tribunal does not have jurisdiction shall be raised not
later than the submission of the statement of defence. A party is not precluded from
raising such a plea by the fact that he has appointed, or participated in the
appointment of, an arbitrator. A plea that the arbitral tribunal is exceeding the scope
of its authority shall be raised as soon as the matter alleged to be beyond the scope of
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.
(3) The arbitral tribunal may rule on a plea referred to in paragraph (2) 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 part may request, within thirty days
after having received notice of 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.
Article 17. Power of arbitral tribunal to order interim measures
 Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of
a party, order any party to take such interim measure of protection as the arbitral
ARBITRATION ġ CAP. 387.        39
tribunal may consider necessary in respect of the subject-matter of the dispute. The
arbitral tribunal may require any party to provide appropriate security in connection
with such measure.
CHAPTER V. CONDUCT OF ARBITRAL PROCEEDINGS
Article 18. Equal treatment of parties
 The parties shall be treated with equality and each party shall be given a full
opportunity of presenting his case.
Article 19. Determination of rules of procedure
(1) Subject to the provisions of this Law, the parties are free to agree on the
procedure to be followed by the arbitral tribunal in conducting the proceedings.
(2) Failing such agreement, the arbitral tribunal may, subject to the provisions
of 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 of any evidence.
Article 20. Place of arbitration
(1) The parties are free to agree on the place of arbitration. Failing such
agreement, the place of arbitration shall be determined by the arbitral tribunal having
regard to the circumstances of the case, including the convenience of the parties.
(2) Notwithstanding the provisions of paragraph (1), 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 of goods, other property or documents.
Article 21. Commencement of arbitral proceedings
 Unless otherwise agreed by the parties, the arbitral proceedings in respect of 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
(1) The parties are free to agree on the language or languages to be used in the
arbitral proceedings. Failing such agreement, the arbitral tribunal shall determine the
language or languages to be used in the proceedings. This agreement or
determination, unless otherwise specified therein, shall apply to any written
statement by a party, any hearing and any award, decision or other communication
by the arbitral tribunal.
(2) The arbitral tribunal may order that any documentary evidence shall be
accompanied by a translation into the language or languages agreed upon by the
parties or determined by the arbitral tribunal.
Article 23. Statement of claim and defence
(1) Within the period of time agreed by the parties or determined by the arbitral
tribunal, the claimant shall state the facts supporting the claim, the points at issue
and the relief of remedy sought, and the respondent shall state his defence in respect
of these particulars, unless the parties have otherwise agreed as to the required
elements of 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.
  40      CAP. 387. ħ                   ARBITRATION
(2) Unless otherwise agreed by the parties, either party may amend or
supplement his claim or defence during the course of the arbitral proceedings, unless
the arbitral tribunal considers it inappropriate to allow such amendment having
regard to the delay in making it.
Article 24. Hearing and written proceedings
(1) Subject to any contrary agreement by the parties, the arbitral tribunal shall
decide whether to hold oral hearings for the presentation of evidence or for oral
argument, or whether the proceedings shall be conducted on the basis of 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 of the
proceedings, if so requested by a party.
(2) The parties shall be given sufficient advance notice of any hearing and of
any meeting of the arbitral tribunal for the purposes of inspection of goods, other
property or documents.
(3) All statements, documents or other information supplied to the arbitral
tribunal by one party shall be communicated to the other party. Also any expert
report or evidentiary document on which the arbitral tribunal may rely in making its
decision shall be communicated to the parties.
Article 25. Default of a party
Unless otherwise agreed by the parties, if, without showing sufficient cause,
( a ) the claimant fails to communicate his statement of claim in accordance
with article 23 (1), the arbitral tribunal shall terminate the proceedings;
( b ) the respondent fails to communicate his statement of defence in
accordance with article 23 (1), the arbitral tribunal shall continue the
proceedings without treating such failure in itself as an admission of 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
(1) Unless otherwise agreed by the parties, the arbitral tribunal,
( a ) may appoint one or more experts to report to it on specific issues to be
determined by the arbitral tribunal;
( b ) may require a party to give the expert any relevant information or to
produce, or to provide access to, any relevant documents, goods or other
property for his inspection.
(2) Unless otherwise agreed by the parties, if a party so requests or if the
arbitral tribunal considers it necessary, the expert shall, after delivery of 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 of the arbitral tribunal may
request from a competent court of this State assistance in taking evidence. The court
may execute the request within its competence and according to its rules on taking
evidence.
ARBITRATION ġ CAP. 387.        41
CHAPTER VI. MAKING OF AWARD AND TERMINATION OF PROCEEDINGS
Article 28. Rules applicable to substance of dispute
(1) The arbitral tribunal shall decide the dispute in accordance with such rules
of law as are chosen by the parties as applicable to the substance of the dispute. Any
designation of the law or legal system of a given State shall be construed, unless
otherwise expressed, as directly referring to the substantive law of that State and not
to its conflict of laws rules.
(2) Failing any designation by the parties, the arbitral tribunal shall apply the
law determined by the conflict of laws rules which it considers applicable.
(3) The arbitral tribunal shall decide  ex aequo et bono  or as  amiable
compositeur  only if the parties have expressly authorised it to do so.
(4) In all cases, the arbitral tribunal shall decide in accordance with the terms of
the contract and shall take into account the usages of the trade applicable to the
transaction.
Article 29. Decision-making by panel of arbitrators
 In arbitral proceedings with more than one arbitrator, any decision of the arbitral
tribunal shall be made, unless otherwise agreed by the parties, by a majority of all its
members. However, questions of procedure may be decided by a presiding arbitrator,
if so authorised by the parties or all members of the arbitral tribunal.
Article 30. Settlement
(1) If, during arbitral proceedings, the parties settle the dispute, the arbitral
tribunal shall terminate the proceedings and, if requested by the parties and not
objected to by the arbitral tribunal, record the settlement in the form of an arbitral
award on agreed terms.
(2) An award on agreed terms shall be made in accordance with the provisions
of 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 of the case.
Article 31. Form and contents of award
(1) The award shall be made in writing and shall be signed by the arbitrator or
arbitrators. In arbitral proceedings with more than one arbitrator, the signatures of
the majority of all members of the arbitral tribunal shall suffice, provided that the
reason for any omitted signature is stated.
(2) The award shall state the reasons upon which it is based, unless the parties
have agreed that no reasons are to be given or the award is an award on agreed terms
under article 30.
(3) The award shall state its date and the place of arbitration as determined in
accordance with article 20 (1). The award shall be deemed to have been made at that
place.
(4) After the award is made, a copy signed by the arbitrators in accordance with
paragraph (1) shall be delivered to each party.
Article 32. Termination of proceedings
(1) The arbitral proceedings are terminated by the final award or by an order of
the arbitral tribunal in accordance with paragraph (2).
(2) The arbitral tribunal shall issue an order for the termination of the arbitral
proceedings when:
  42      CAP. 387. ħ                   ARBITRATION
( a ) the claimant withdraws his claim, unless the respondent objects thereto
and the arbitral tribunal recognises a legitimate interest on his part in
obtaining a final settlement of the dispute;
( b ) the parties agree on the termination of the proceedings;
( c ) the arbitral tribunal finds that the continuation of the proceedings has
for any other reason become unnecessary or impossible.
(3) The mandate of the arbitral tribunal terminates with the termination of the
arbitral proceedings, subject to the provisions of articles 33 and 34 (4).
Article 33. Correction and interpretation of award, additional award
(1) Within thirty days of receipt of the award, unless another period of 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 of 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 of a specific point
or part of the award.
 If the arbitral tribunal considers the request to be justified, it shall make the
correction or give the interpretation within thirty days of receipt of the request. The
interpretation shall form part of the award.
(2) The arbitral tribunal may correct any error of the type referred to in
paragraph (1) ( a ) on its own initiative within thirty days of the date of the award.
(3) Unless otherwise agreed by the parties, a party, with notice to the other
party, may request, within thirty days of receipt of 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.
(4) The arbitral tribunal may extend, if necessary, the period of time within
which it shall make a correction, interpretation or an additional award under
paragraph (1) or (3).
(5) The provisions of article 31 shall apply to a correction or interpretation of
the award or to an additional award.
CHAPTER VII. RECOURSE AGAINST AWARD
Article 34. Application for setting aside as exclusive recourse against arbitral
award
(1) Recourse to a court against an arbitral award may be made only by an
application for setting aside in accordance with paragraphs (2) and (3).
(2) An arbitral award may be set aside by the court specified in article 6 only if:
( a ) the party making the application furnishes 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 of this State; or
(ii) the party making the application was not given proper notice of
ARBITRATION ġ CAP. 387.        43
the appointment of an arbitrator or of 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 of the submission to arbitration, or contains
decisions on matters beyond the scope of 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 of the award which contains decisions on matters not
submitted to arbitration may be set aside; or
(iv) the composition of the arbitral tribunal or the arbitral procedure
was not in accordance with the agreement of the parties, unless
such agreement was in conflict with a provision of 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 of the dispute is not capable of settlement by
arbitration under the law of this State; or
(ii) the award is in conflict with the public policy of this State.
(3) An application for setting aside may not be made after three months have
elapsed from the date on which the party making that application had received the
award or, if a request had been made under article 33, from the date on which that
request had been disposed of by the Arbitration Tribunal.
(4) The court, when asked to set aside an award, may, where appropriate and so
requested by a party, suspend the setting aside proceedings for a period of time
determined by it in order to give the arbitral tribunal an opportunity to resume the
arbitral proceedings or to take such action as in the arbitral tribunal’s opinion will
eliminate the grounds for setting aside.
CHAPTER VIII. RECOGNITION AND ENFORCEMENT OF AWARDS
Article 35. Recognition and Enforcement
(1) An arbitral award, irrespective of the country in which it was made, shall be
recognised as binding and, upon application in writing to the competent court, shall
be enforced subject to the provisions of this article and of article 36.
(2) The party relying on an award or applying for its enforcement shall supply
the duly authenticated original award or a duly certified copy thereof, and the
original arbitration agreement referred to in article 7 or a duly certified copy thereof.
If the award or agreement is not made in an official language of this State, the party
shall supply a duly certified translation thereof into such language. *
Article 36. Grounds for refusing recognition or enforcement
(1) Recognition or enforcement of an arbitral award, irrespective of the country
in which it was made, may be refused only:
( a ) at the request of the party against whom it is invoked, if that party
furnishes to the competent court where recognition or enforcement is
sought proof that:
*The conditions set forth in this paragraph are intended to set maximum standards. It would, thus, not be
contrary to the harmonization to be achieved by the Model Law if a State retained even less onerous
conditions.
  44      CAP. 387. ħ                   ARBITRATION
(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 of the country where the award
was made; or
(ii) the party against whom the award is invoked was not given proper
notice of the appointment of an arbitrator or of 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 of the submission to arbitration, or it contains
decisions on matters beyond the scope of the submission to
arbitration, provided that, if the decision on matters submitted to
arbitration can be separated from those not so submitted, that part
of the award which contains decisions on matters submitted to
arbitration may be recognised and enforced; or
(iv) the composition of the arbitral tribunal or the arbitral procedure
was not in accordance with the agreement of the parties or, failing
such agreement, was not in accordance with the law of 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 of the country in which, or under
the law of which, that award was made; or
( b ) if the court finds that:
(i) the subject-matter of the dispute is not capable of settlement by
arbitration under the law of this State; or
(ii) the recognition or enforcement of the award would be contrary to
the public policy of this State.
(2) If an application for setting aside or suspension of an award has been made
to a court referred to in paragraph (1) ( a ) (v), the court where recognition or
enforcement is sought may, if it considers it proper, adjourn its decision and may
also, on the application of the party claiming recognition or enforcement of the
award, order the other party to provide appropriate security.
ARBITRATION ġ CAP. 387.        45
SECOND SCHEDULE Amended by:
XVIII.1999.31.
THE UNITED NATIONS CONVENTION ON THE RECOGNITION AND 
ENFORCEMENT OF FOREIGN ARBITRAL AWARDS  ( NEW YORK 1958 )
ARTICLE I
1. This Convention shall apply to the recognition and enforcement of arbitral
awards made in the territory of a State other than the State where the recognition and
enforcement of such awards are sought, and arising out of 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.
2. 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.
3. When signing, ratifying or acceding to this Convention, or notifying
extension under Article X hereof, any State may on the basis of reciprocity declare
that it will apply the Convention to the recognition and enforcement of awards made
only in the territory of another Contracting State. It may also declare that it will
apply the Convention only to differences arising out of legal relationships, whether
contractual or not, which are considered as commercial under the national law of 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 of a defined legal relationship, whether
contractual or not, concerning a subject-matter capable of 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 of
letters or telegrams.
3. The court of a Contracting State, when seized of an action in a matter in
respect of which the parties have made an agreement within the meaning of this
article shall, at the request of one of the parties, refer the parties to arbitration,
unless it finds that the said agreement is null and void, inoperative or incapable of
being performed.
ARTICLE III
Each Contracting State shall recognise arbitral awards as binding and enforce
them in accordance with the rules of procedure of 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 of arbitral awards to which the Convention applies than
are imposed on the recognition or enforcement of domestic arbitral awards.
ARTICLE IV
  46      CAP. 387. ħ                   ARBITRATION
1. To obtain the recognition and enforcement mentioned in the preceding
article, the party applying for recognition and enforcement shall, at the time of the
application, supply:
( a ) The duly authenticated original award or a duly certified copy thereof;
( 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 official language of the
country in which the award is relied upon, the party applying for recognition and
enforcement of the award shall produce a translation of these documents into such
language. The translation shall be certified by an official or sworn translator or by a
diplomatic or consular agent.
ARTICLE V
1. Recognition and enforcement of the award may be refused, at the request of
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 of the country where the award was
made; or
( b ) The party against whom the award is invoked was not given proper
notice of the appointment of the arbitrator or of 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 of the submission to arbitration, or it contains decisions
on matters beyond the scope of the submission to arbitration, provided
that, if the decision on matters submitted to arbitration can be separated
from those not so submitted, that part of the award which contains
decisions on matters submitted to arbitration may be recognised and
enforced; or
( d ) The composition of the arbitral authority or the arbitral procedure was
not in accordance with the agreement of the parties, or, failing such
agreement, was not in accordance with the law of 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 of the country in which, or
under the law of which, that award was made.
2. Recognition and enforcement of 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 of the difference is not capable of settlement by
arbitration under the law of that country; or
( b ) The recognition or enforcement of the award would be contrary to the
public policy of that country.
ARTICLE VI
ARBITRATION ġ CAP. 387.        47
If an application for the setting aside or suspension of the award has been made to
a competent authority referred to in article V(1)( e ), the authority before which the
award is sought to be relied upon may, if it considers it proper, adjourn the decision
on the enforcement of the award and may also, on the application of the party
claiming enforcement of the award, order the other party to give suitable security.
ARTICLE VII
1. The provisions of the present Convention shall not affect the validity of
multilateral or bilateral agreements concerning the recognition and enforcement of
arbitral awards entered into by the Contracting States nor deprive any interested
party of any right he may have to avail himself of an arbitral award in the manner
and to the extent allowed by the law or the treaties of the country where such award
is sought to be relied upon.
2. The Geneva Protocol of Foreign Arbitral Awards of 1923 and the Geneva
Convention on the Execution of Foreign Arbitral Awards of 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 of any Member of the United Nations and also on behalf of any other State
which is or hereafter becomes a member of any specialised agency of the United
Nations, or which is or hereafter becomes a party to the Statute of the International
Court of Justice, or any other State to which an invitation has been addressed by the
General Assembly of the United Nations.
2. This Convention shall be ratified and the instrument of ratification shall be
deposited with the Secretary-General of 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 of an instrument of accession with
the Secretary-General of the United Nations.
ARTICLE X
1. Any State may, at the time of signature, ratification or accession, declare
that this Convention shall extend to all or any of the territories for the international
relations of 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 of the United Nations and shall take effect as
from the ninetieth day after the day of receipt by the Secretary-General of the United
Nations of this notification, or as from the date of entry into force of 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 of signature, ratification or accession, each State concerned shall consider
  48      CAP. 387. ħ                   ARBITRATION
the possibility of taking the necessary steps in order to extend the application of this
Convention to such territories, subject, where necessary for constitutional reasons, to
the consent of the Governments of such territories.
ARTICLE XI
In the case of a federal or non-unitary State, the following provisions shall apply:
( a ) With respect to those articles of this Convention that come within the
legislative jurisdiction of the federal authority, the obligations of the
federal Government shall to this extent be the same as those of
Contracting States which are not federal States;
( b ) With respect to those articles of this Convention that come within the
legislative jurisdiction of constituent states or provinces which are not,
under the constitutional system of the federation, bound to take
legislative action, the federal Government shall bring such articles with
a favourable recommendation to the notice of the appropriate authorities
of constituent states or provinces at the earliest possible moment;
( c ) A federal State Party to this Convention shall, at the request of any
other Contracting State transmitted through the Secretary-General of the
United Nations, supply a statement of the law and practice of the
federation and its constituent units in regard to any particular provision
of 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 of deposit of the third instrument of ratification or accession.
2. For each State ratifying or acceding to this Convention after the deposit of
the third instrument of ratification or accession, this Convention shall enter into
force on the ninetieth day after deposit of such State of its instrument of ratification
or accession.
ARTICLE XIII
1. Any Contracting State may denounce this Convention by a written
notification to the Secretary-General of the United Nations. Denunciation shall take
effect one year after the date of receipt of 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 of the United
Nations, declare that this Convention shall cease to extend to the territory concerned
one year after the date of the receipt of the notification by the Secretary-General.
3. This Convention shall continue to be applicable to arbitral awards in respect
of which recognition or enforcement proceedings have been instituted before the
denunciation takes effect.
ARTICLE XIV
ARBITRATION ġ CAP. 387.        49
A Contracting State shall not be entitled to avail itself of 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 of the United Nations shall notify the States contemplated
in Article VIII of the following:
( a ) Signatures and ratifications in accordance with Article VIII;
( b ) Accessions in accordance with Article IX;
( c ) Declarations and notifications under Articles I, X and XI;
( d ) The date upon which this Convention enters into force in accordance
with Article XII;
( e ) Denunciations and notifications in accordance with Article XIII.
ARTICLE XVI
1. This Convention, of which the Chinese, English, French, Russian and
Spanish texts shall be equally authentic, shall be deposited in the archives of the
United Nations.
2. The Secretary General of the United Nations shall transmit a certified copy
of this Convention to the States contemplated in Article VIII.
Declaration made by Malta on its becoming a member to the United Nations 
Convention on the recognition and enforcement of Foreign Arbitral Awards 
(New York 1958)
1. In accordance with the relevant provisions of the Convention, Malta will
apply the Convention only to the recognition and enforcement of awards made in the
territory of another Contracting State.
2. The Convention only applies in regard to Malta with respect to arbitration
agreements concluded after the date of Malta’s accession to the Convention and
awards pursuant thereto made after the date of Malta’s accession to the Convention.
  50      CAP. 387. ħ                   ARBITRATION
Amended by: THIRD SCHEDULE *
XVIII.1999.32.
CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES 
BETWEEN STATES AND NATIONALS OF OTHER STATES 
( WASHINGTON 1965 )
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; 
 Recognising 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 may submit such disputes if
they so desire;
Desiring to establish such facilities under the auspices of 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
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 I
INTERNATIONAL CENTRE FOR SETTLEMENT OF
INVESTMENT DISPUTES
SECTION 1
Establishment and Organisation
ARTICLE I
(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 Contracting States and nationals of other
*Not yet in force.
ARBITRATION ġ CAP. 387.        51
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.
SECTION 2
The Administrative 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 alternate 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 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 revenue and expenditures of the Centre;
  52      CAP. 387. ħ                   ARBITRATION
( g ) approve the annual report on the operation of the Centre.
 The decisions referred to in subparagraphs ( 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 set 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
ARBITRATION ġ CAP. 387.        53
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 Contracting State may designate to each Panel four persons who may
but need not be its nationals.
(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 recognised competence in the fields of law, commerce, industry or
finance, who may be relied upon to exercise independent judgement. Competence in
the field of the 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.
  54      CAP. 387. ħ                   ARBITRATION
(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
Contracting Centre the immunities and privileges set forth in this Section.
ARTICLE 20
 The Centre, its property and assets shall enjoy immunity from all legal process,
ARBITRATION ġ CAP. 387.        55
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 subparagraph ( 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
(1) 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 Contracting State treatment not less favourable than that accorded to other
international organisations.
ARTICLE 24
(1) The Centre, its assets, property and income, and its operations and
transactions authorised 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
  56      CAP. 387. ħ                   ARBITRATION
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 Contracting State" means:
( 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 Contracting State shall
require the approval of that State unless that State notifies the Centre that no such
approval is required.
(4) Any Contracting State may, at the time of ratification, acceptance or
approval of this Convention or at any time thereafter, notify the Centre of the class
or classes of disputes which it would or would not consider submitting to the
jurisdiction of the Centre. The Secretary-General shall forthwith transmit such
notification to all Contracting States. Such notification shall not constitute the
consent required by paragraph (1).
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
Contracting State may require the exhaustion of local administrative or judicial
remedies as a condition of its consent to arbitration under this Convention.
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
ARBITRATION ġ CAP. 387.        57
informal diplomatic exchanges for the sole purpose of facilitating a settlement of the
dispute.
CHAPTER III
CONCILIATION
SECTION 1
Request for Conciliation
ARTICLE 28
(1) Any Contracting State or any national of 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 of the request to the other party.
(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.
( b ) Where the parties do not agree upon the number of conciliators and the
method of their appointment, the Commission shall consist of three conciliators, one
conciliator appointed by each party and the third, who shall be the president of the
Commission, appointed by agreement of the parties.
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
  58      CAP. 387. ħ                   ARBITRATION
(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 a 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 proceedings 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
ARBITRATION ġ CAP. 387.        59
conciliation proceedings, or the report or any recommendations made by the
Commission.
CHAPTER IV
ARBITRATION
SECTION 1
Request for Arbitration
ARTICLE 36
(1) Any Contracting State or any national of 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 of the request to the other party.
(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 Contracting State party to the dispute or of the Contracting State whose
  60      CAP. 387. ħ                   ARBITRATION
national is a party to the dispute.
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 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 Contracting State party to the dispute (including its rules on the
conflict of laws) and such rules of international law as may be applicable.
(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 state 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 enquiries
there as it may deem appropriate.
ARBITRATION ġ CAP. 387.        61
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 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
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
  62      CAP. 387. ħ                   ARBITRATION
(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 effect 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 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 to the Secretary-General on one or more of the following grounds:
( a ) that the Tribunal was not properly constituted;
( b ) that the Tribunal had manifestly exceeded its powers;
ARBITRATION ġ CAP. 387.        63
( 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
VII shall apply  mutatis mutandis  to proceedings before the Committee.
(5) The Committee may, if it considers that 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 Contracting State shall recognise an award rendered pursuant to this
Convention as binding and enforce the pecuniary obligations imposed by that award
within its territories as if it were a final judgement of 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 of the courts of a constituent state.
  64      CAP. 387. ħ                   ARBITRATION
(2) A party seeking recognition or enforcement in the territories of a
Contracting State shall furnish to a competent court or other authority which such
State shall have designated for this purpose a copy of the award certified by the
Secretary-General. Each Contracting State shall notify the Secretary-General of the
designation of the competent court or other authority for this purpose and of any
subsequent change in such designation.
(3) Execution of the award shall be governed by the laws concerning the
execution of 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 of that State or of any foreign State from
execution.
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 III
or Section 2 of Chapter IV.
(2) A member of the 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 an 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
ARBITRATION ġ CAP. 387.        65
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 III or Section 2 of
Chapter IV.
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
(1) 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) shall preclude the parties from agreeing in advance
with the Commission or Tribunal concerned upon the fees and expenses of its
members.
ARTICLE 61
(1) 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,
  66      CAP. 387. ħ                   ARBITRATION
( 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 Contracting State may propose amendment of this Convention. The text of a
proposed amendment shall be communicated to the Secretary-General not less than
90 days prior to the meeting of the Administrative Council at which such amendment
is to be considered and shall forthwith be transmitted by him to all the members of
the Administrative Council.
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 depository 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 Contracting State or of any of its constituent subdivisions or agencies, or of
any national of such State arising out of consent to the jurisdiction of the Centre
given before the date of entry into force of the amendment.
CHAPTER X
FINAL PROVISIONS
ARBITRATION ġ CAP. 387.        67
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 Contracting State shall take legislative or other measures as may be
necessary for making the provisions of this Convention effective in its territories.
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 depository of this Convention either at the time of ratification,
acceptance or approval or subsequently.
ARTICLE 71
 Any Contracting State may denounce this Convention by written notice to the
depository of this Convention. The denunciation shall take effect six months after
receipt of such notice.
ARTICLE 72
 Notice by a Contracting State pursuant to Article 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 depository.
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
depository of this Convention. The depository shall transmit certified copies of this
Convention to States members of the Bank and to any other State invited to sign the
Convention.
  68      CAP. 387. ħ                   ARBITRATION
ARTICLE 74
 The depository 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 depository 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 ) denunciation in accordance with Article 71.
 DONE at Washington in the English, French and Spanish languages, all three
texts being equally authentic, in a single copy which shall remain deposited in the
archives of the International Bank for Reconstruction and Development, which has
indicated by its signature below its agreement to fulfil the functions with which it is
charged under this Convention.
