INVESTMENT DISPUTES CONVENTION ACT
Arrangement of Sections
1. Short title
3. Binding effect of award
4. Registration of awards
5. Effect of registration
6. Rules of court
7. Status, immunities and privileges
8. Act to bind Republic
to give effect to the Convention on the Settlement of Investment Disputes between States and Nationals of other States.
[17th April, 1970]
Act 18 of 1970.
This Act may be cited as the Investment Disputes Convention Act.
In this Act, unless the context otherwise requires—
“award” means an award rendered pursuant to the Convention and includes any decision interpreting, revising or annulling an award, being a decision pursuant to the Convention;
“Convention” means the Convention on the Settlement of Investment Disputes between States and Nationals of other States, the text of which is set out in the Schedule;
“prescribed” means prescribed by rules of court.
Every award shall be binding on the parties thereto.
(1) Upon application being made in that behalf, a person seeking recognition or enforcement of an award shall be entitled to have the award registered in the High Court, subject to proof of the prescribed matters and to the other provisions of this Act.
(2) Upon application being made under sub-section (1), the applicant shall produce to the High Court—
(a) a copy of the award certified pursuant to the Convention;
(b) evidence that no application is pending under Article 52 of the Convention and that enforcement of the award has not been stayed, whether provisionally or otherwise, pursuant to the Convention.
(3) In addition to the pecuniary obligations imposed by the award, the award shall be registered for the reasonable costs of and incidental to registration.
(4) If at the date of the application for registration the pecuniary obligations imposed by the award have been partly satisfied, the award shall be registered only in respect of the balance, and accordingly if those obligations have then been wholly satisfied, the award shall not be registered.
(5) Where any document required to be produced to the High Court is in a foreign language, it shall be the duty of the applicant to furnish a translation certified as correct in such language and manner as may be prescribed.
Subject to the provisions of this Act, an award registered under section 4 shall, as respects the pecuniary obligations which it imposes, have the same force and effect from its date of registration as if it had been a final judgment of the High Court entered on that date and may be enforced accordingly.
Rules of court may be made, by statutory instrument, to carry this Act into effect and such rules may in particular—
(a) prescribe the procedure for applying for registration of an award under this Act and require an applicant to give prior notice of his intention to other parties;
(b) prescribe the matters to be proved on the application and the manner of proof of those and any other matters;
(c) provide for the service of notice of registration of the award by the applicant on other parties;
(d) require the High Court on proof of prescribed matters to stay execution of any award registered under this Act in cases where the enforcement of the award has been stayed, whether provisionally or otherwise, pursuant to the Convention, and provide for the provisional stay of execution of the award where an application is made pursuant to the Convention which, if granted, might result in a stay of enforcement of the award.
(1) Subject to sub-section (2), Articles 18 to 24 (both inclusive) of the Convention (which govern the status, immunities and privileges of the International Centre for Settlement of Investment Disputes, of members of its Council and Secretariat and of persons concerned with conciliation or arbitration under the Convention) shall have the force of law so far as they affect Zambia.
(2) Nothing in Article 24 (1) of the Convention shall be construed as—
(a) entitling the said Centre to import goods free of customs duty without any restriction on their subsequent sale in Zambia; or
(b) conferring on the said Centre any exemption from duties or taxes which form part of the price of the goods sold.
(3) For the purposes of Articles 20 and 21 of the Convention, a statement to the effect that the said Centre has waived an immunity in the circumstances specified in the statement, being a statement certified by the Secretary-General of the said Centre (or by the person acting as Secretary-General), shall be conclusive evidence.
This Act shall bind the Republic (but not so as to make an award enforceable against the Republic in a manner in which a judgment would not be enforceable against the Republic).
CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS OF OTHER STATES
The Contracting States
Considering the need for international co-operation for economic development and the role of private international investment therein;
Bearing in mind the possibility that from time to time disputes may arise in connection with such investment between Contracting States and nationals of other Contracting States;
Recognizing that while such disputes would usually be subject to national legal processes, international methods of settlement may be appropriate in certain cases;
Attaching particular importance to the availability of facilities for international conciliation or arbitration to which Contracting States and nationals of other Contracting States may submit such disputes if they so desire;
Desiring to establish such facilities under the auspices of the International Bank for Reconstruction and Development;
Recognizing that mutual consent by the parties to submit such disputes to conciliation or to arbitration through such facilities constitutes a binding agreement which requires in particular that due consideration be given to any recommendation of conciliators, and that any arbitral award be complied with; and
Declaring that no 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—
INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES
Section 1-Establishment and Organisation
(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 Contracting States in accordance with the provisions of this Convention.
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.
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
(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.
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.
(1) Without prejudice to the powers and functions vested in it by other provisions of this Convention, the Administrative Council shall—
(a) adopt the administrative and financial regulations of the Centre;
(b) adopt the rules of procedure for the institution of conciliation and arbitration proceedings;
(c) adopt the rules of procedure for conciliation and arbitration proceedings (hereinafter called the Conciliation Rules and the Arbitration Rules);
(d) approve arrangements with the Bank for the use of the Bank's administrative facilities and services;
(e) determine the conditions of service of the Secretary-General and of any Deputy Secretary-General;
(f) adopt the annual budget of revenues and expenditures of the Centre;
(g) approve the annual report on the operation of the Centre.
The decisions referred to in sub-paragraphs (a), (b), (c) and (f) above shall be adopted by a majority of two-thirds of the members of the Administrative Council.
(2) The Administrative Council may appoint such committees as it considers necessary.
(3) The Administrative Council shall also exercise such other powers and perform such other functions as it shall determine to be necessary for the implementation of the provisions of this Convention.
(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.
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