Bermuda International Arbitration And Conciliation Act 1993
The Laws of Bermuda
Annual Volume of Public Acts 1993 : 29

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BERMUDA
1993 : 29

BERMUDA INTERNATIONAL CONCILIATION AND
ARBITRATION ACT 1993

ARRANGEMENT OF SECTIONS

1 Short title

PART I
PRELIMINARY

2 Interpretation; Schedules
1,2 and 3

PART II
CONCILIATION

3 Conciliation
4 Application of this Part
5 Appointment of conciliator
6 Guide for conciliator
7 Conduct of conciliation

proceedings
8 Draft conciliation

settlement
9 Acceptance of settlement

not required
10 Admissibility of evidence

and nondisclosure in
other proceedings

11 Agreement to stay judicial
or arbitral proceedings

12 Termination of
conciliation proceedings

13 Termination of
conciliation proceedings
as to particular parties

14 Conciliator as arbitrator,
ineligibility for
appointment etc.

15 Non-waiver of rights or
remedies by submission
to conciliation

16 Costs
17 No consent to court

jurisdiction upon failure
of conciliation

18 Immunity of participants
in conciliation

19 Non-liability of conciliator
20 Settlement agreements
21 Representation in

conciliation proceedings

PART III
INTERNATIONAL ARBITRATION

22 Interpretation
23 Model Law to have force of

law
24 Interpretation of Model

Law—use of extrinsic
material

25 Court specified for
purposes of Article 6 of
Model Law

26 Orders under Article 17 of
the Model Law

27 Articles 34 and 36 of
Model Law—public policy

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28 Chapter VIII of Model Law
not to apply in certain
cases

29 Settlement of dispute
otherwise than in
accordance with Model
Law

30 Failure of an arbitrator to
participate in proceedings

31 Interest
32 Costs
33 Immunity of participants

in arbitration
34 Non-liability of arbitrator
35 Conduct of proceedings,

witnesses, etc.
36 Interim, interlocutory or

partial awards
37 Representation in

proceedings
38 Transitional

PART IV
ENFORCEMENT OF

CONVENTION AWARDS

39 Effect this Part
40 Effect of Convention

awards
41 Evidence
42 Refusal of enforcement
43 Saving
44 Order to be conclusive

evidence

PART V
GENERAL

45 Hearing of proceedings
46 Restrictions on reporting

of proceedings
47 Costs in respect of

unqualified person
48 Enforcement of award
49 Crown to be bound
50 Amends Arbitration Act

1986
51 Amends Limitation Act

1984
Schedule 1
Schedule 2
Schedule 3

[Date of Assent 29 June 1993]

[Operative Date 29 June 1993]

WHEREAS it is expedient to provide for the conduct of
international commercial conciliations and arbitrations and the
recognition and enforcement of foreign arbitral awards in Bermuda and
for matters connected therewith;

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Short Title
1 This Act may be cited as the Bermuda International Conciliation
and Arbitration Act 1993.

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PART I
PRELIMINARY

Interpretation; Schedules 1, 2 and 3
2 In this Act, unless the context otherwise requires —

"arbitral award" has the same meaning as in the New York
Convention;

"arbitral tribunal" means a sole arbitrator or a panel of
arbitrators;

"arbitration agreement" has the same meaning as in article 7(1)
of the Model Law;

"conciliation" includes mediation;

"Conciliation Rules" means the UNCITRAL Conciliation Rules
adopted by the United Nations Commission on International
Trade Law on 23 July 1980, the English text of which is set
out in Schedule 1;

"Convention award" means an award to which Part IV applies,
namely, an award made in pursuance of an arbitration
agreement in a State or territory other than Bermuda, which
is a party to the New York Convention;

"Court" means the Supreme Court or the Court of Appeal of
Bermuda;

"dispute" includes a difference;

"international arbitration agreement" means an arbitration
agreement pursuant to which an arbitration is, or would if
commenced be, international within the meaning of article
1(3) of the Model Law;

"Model Law" means the UNCITRAL Model Law on International
Commercial Arbitration adopted by the United Nations
Commission on International Trade Law on 21 June 1985,
the English text of which is set out in Schedule 2;

"the New York Convention" means the Convention on the
Recognition and Enforcement of Foreign Arbitral Awards
adopted by the United Nations Conference on International
Commercial Arbitration on 10 June 1958 the English text of
which is set out in Schedule 3.

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PART II
CONCILIATION

Conciliation
3 Parties to an international arbitration agreement are hereby
encouraged to resolve any disputes between them through conciliation.

Application of this Part
4 The provisions of this Part shall apply to the extent that the
parties have not otherwise agreed in writing.

Appointment of conciliator
5 (1) The parties to an international arbitration agreement may
appoint or permit an arbitral tribunal or other third party to appoint one
or more persons to serve as the conciliator or conciliators (hereafter
referred to as "the conciliator") who shall assist the parties in an
independent and impartial manner in their attempt to reach an amicable
settlement of their dispute.

(2) Where the parties have agreed in writing for the
appointment of a conciliator by an institution or a person who is not one
of the parties and that institution or person refuses to make the
appointment or does not make the appointment within the time specified
in the agreement, or if no time is specified, within a reasonable time not
exceeding twenty-eight days of being notified of the existence of the
dispute, any party to the agreement may by notice in writing require the
institution or person in default to appoint a conciliator and shall
forthwith give a copy of the notice to the other parties to the agreement; if
the appointment is not made within seven clear days after giving the
notice to the institution or person, the Court may on the application of
any party to the agreement appoint a conciliator (in respect of which
decision there is no right of appeal) who shall have the like powers to act
in the conciliation proceedings as if he had been appointed in
accordance with the terms of the agreement.

Guide for conciliator
6 The conciliator shall be guided by principles of objectivity,
fairness and justice giving consideration to, among other things, the
rights and obligations of the parties, the usages of the trade concerned
and the circumstances surrounding the dispute including any previous
business practices between the parties.

Conduct of conciliation proceedings
7 (1) The conciliator may conduct the conciliation proceedings in
such manner as the conciliator considers appropriate, taking into

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account the circumstances of the case, the wishes of the parties and the
desirability of a speedy settlement of the dispute.

(2) The conciliator may, unless otherwise agreed in writing by
the parties to the agreement, meet at any place designated by the
conciliator for discussions with one or more parties, for the hearing of
witnesses, experts or parties, for inspection of documents, goods or other
property or for consultation with the conciliator and need not be in
Bermuda when signing any recommendation or other communication to
the parties or any settlement agreement.

(3) Except as otherwise provided in this Act, other provisions of
this Act, the Evidence Act 1905 and the Supreme Court Act 1950 and
the rules made thereunder shall not apply to conciliation proceedings
under this Act.

Draft conciliation settlement
8 At any time during the proceedings, the conciliator may prepare
a draft conciliation settlement which may include the assessment and
apportionment of costs between the parties, and send copies to the
parties, specifying the time within which they must signify their
approval.

Acceptance of settlement not required
9 No party may be required to accept any settlement proposed by
the conciliator.

Admissibility of evidence and nondisclosure in other proceedings
10 (1) Unless otherwise agreed in writing by the parties, it shall be
an implied term of the written agreement to conciliate that the parties
undertake not to rely on or introduce as evidence in any arbitral or
judicial proceedings in any jurisdiction, whether or not such proceedings
relate to the dispute that is the subject of the conciliation proceedings—

(a) views expressed or suggestions made by any party in
respect of possible settlement of the dispute;

(b) admissions made by any party in the course of the
conciliation proceedings;

(c) proposals made by the conciliator;

(d) the fact that the other party had indicated willingness to
accept all, or part, of a proposal for settlement made by
the other party, or by the conciliator.

(2) Without limiting the obligations created by subsection (1),
evidence of anything said or of any admission made in relation to any or
all of the matters referred to in subsection (1)(a) to (d) (inclusive) is not

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admissible in evidence in any arbitration conducted pursuant to Part III
or judicial proceeding in Bermuda, and disclosure of any such evidence
shall not be compelled in any civil action in Bermuda in which, pursuant
to the law, testimony may be compelled to be given.

(3) Where evidence is offered in contravention of this section,
the arbitration tribunal or the Court shall make any order which it
considers to be appropriate to deal with the matter, including, without
limitation, orders restricting the introduction of evidence, or dismissing
the case without prejudice.

Agreement to stay judicial or arbitral proceedings
11 Unless the parties otherwise agree in writing, the written
agreement of the parties to submit a dispute to conciliation shall be an
agreement between or among those parties to stay all judicial or arbitral
proceedings from the commencement of conciliation until the
termination of conciliation proceedings.

Termination of conciliation proceedings
12 The conciliation proceedings may be terminated as to all parties
in any of the following cases:

(a) in the case where the parties have agreed in writing that
the conciliation shall be conducted in accordance with
the Conciliation Rules, the conciliation proceedings shall
be terminated in accordance with Article 15 of those
Rules;

(b) in the case where the parties have not agreed in writing
that the Conciliation Rules shall apply, unless a contrary
intention appears in their written agreement or in any
rules which they agree in writing shall apply, it shall be
an implied term of an agreement to participate in
conciliation that in the event of the conciliation
proceedings failing to produce a settlement acceptable to
the parties within three months or such longer period as
the parties may agree to, of the date of the appointment
of the conciliator, or where he is appointed by name in
the agreement, of the receipt by him of written
notification of the existence of a dispute, the conciliation
proceedings shall thereupon terminate;

(c) in the case where there is a written declaration of the
conciliator, after consultation with the parties, to the
effect that further efforts at conciliation are no longer
justified, conciliation proceedings shall terminate on the
date of the declaration;

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(d) in the case where there is a written declaration of the
parties addressed to the conciliator to the effect that the
conciliation proceedings are terminated, the conciliation
proceedings shall terminate on the date of the
declaration;

(e) in the case where there is the signing of a settlement
agreement by all of the parties, conciliation proceedings
shall terminate on the date of the agreement.

Termination of conciliation proceedings as to particular parties
13 The conciliation proceedings may be terminated as to particular
parties by either of the following:

(a) a written declaration of a party to the other party and
the conciliator, if appointed, to the effect that the
conciliation proceedings shall be terminated as to that
particular party, on the date of the declaration;

(b) the signing of a settlement agreement by some of the
parties, on the date of the agreement.

Conciliator as arbitrator, ineligibility for appointment etc.
14 (1) No person who has served as conciliator may be appointed
as an arbitrator for, or take part in, any arbitral or judicial proceedings
in the same dispute unless all parties agree in writing to such
participation or the rules agreed for conciliation or arbitration so provide.

(2) Where the parties have agreed in writing that a person
appointed as a conciliator shall act as an arbitrator, in the event of the
conciliation proceedings failing to produce a settlement acceptable to the
parties no objection shall be taken to the appointment of such person as
an arbitrator, or to his conduct of the arbitration proceedings or to any
award, solely on the ground that he had acted previously as a conciliator
in connection with some or all of the matters referred to arbitration; but
if such person declines to act as an arbitrator, any other person
appointed as an arbitrator shall not be required first to act as a
conciliator unless the parties have otherwise agreed in writing.

Non-waiver of rights or remedies by submission to conciliation
15 By submitting to conciliation, no party has waived any rights or
remedies which that party would have had if conciliation had not been
initiated, other than those set forth in any settlement agreement which
results from the conciliation.

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Costs
16 (1) Upon termination of the conciliation proceedings, the
conciliator shall fix the costs of the conciliation and give written notice
thereof to the parties.

(2) Costs shall be borne equally by the parties unless the
settlement agreement provides for a different apportionment and all
other expenses incurred by a party shall be borne by that party.

(3) In this section "costs" means—

(a) a reasonable fee to be paid to the conciliator;

(b) the travel and other reasonable expenses of the
conciliator;

(c) the travel and other reasonable expenses of witnesses
requested by the conciliator with the consent of the
parties;

(d) the cost of any expert advice requested by the conciliator
with the consent of the parties;

(e) the cost of any court;

(f) the administration fees and expenses of an arbitral
institution.

No consent to court jurisdiction upon failure of conciliation
17 Neither the request for conciliation, the consent to participate in
the conciliation proceedings, the participation in such proceedings, nor
the entering into a conciliation agreement or settlement shall constitute
consent to the jurisdiction of any court in Bermuda in the event
conciliation fails except that this section does not affect the jurisdiction
of any court in Bermuda with respect to any settlement agreement
resulting from a conciliation.

Immunity of participants in conciliation
18 Neither the conciliator, the parties, nor their representatives nor
any assistant nor any witness or expert shall be subject to service of
process on any civil matter relating to the dispute in respect of the
conciliation under this Act while present in Bermuda for the purpose of
arranging for or participating in conciliation pursuant to this Act.

Non-liability of conciliator
19 No person who serves as a conciliator shall be held liable in an
action for damages resulting from any act or omission in his capacity as
a conciliator in connection with any conciliation proceeding conducted

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under this Act except that such person may be liable for the
consequences of conscious and deliberate wrongdoing.

Settlement agreements
20 If the parties to an arbitration agreement reach agreement by
means of conciliation or otherwise in settlement of their dispute and
enter into an agreement in writing containing the terms of settlement
(the "settlement agreement") the settlement agreement shall, for the
purposes of its enforcement in Bermuda, be treated as an award on an
arbitration agreement and may, by leave of the Court, be enforced in the
same manner as a judgment or order to the same effect and, where leave
is so given, judgment may be entered in terms of the agreement,
pursuant to section 48.

Representation in conciliation proceedings
21 (1) Where, in accordance with this Act and with the written
agreement of the parties or at the request in writing of a party, as the
case may be, conciliation proceedings are conducted by way of oral
hearings for the presentation of evidence or for oral argument, or
conciliation proceedings are conducted on the basis of documents or
other materials, the following provisions shall apply.

(2) A party may appear in person before conciliation
proceedings and may be represented:

(a) by himself;

(b) by a duly qualified legal practitioner from any legal
jurisdiction of that party's choice; or

(c) by any other person of that party's choice.

(3) A legal practitioner or a person, referred to in subsection
(2)(b) or (c) respectively, while acting on behalf of a party to conciliation
proceedings to which this Part applies shall not thereby be taken to have
breached any law regulating admission to, or the practice of, the
profession of the law within Bermuda in which the proceedings are
conducted.

(4) Where, subject to the agreement of the parties, conciliation
proceedings are conducted on the basis of documents and other
materials, such documents and materials may be prepared and
submitted by any legal practitioner or person who would, under
subsection (2), be entitled to appear before the conciliation proceedings,
and, in such a case, subsection (3) shall apply with the same force and
effect to such legal practitioner or person.

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PART III
INTERNATIONAL ARBITRATION

Interpretation
22 Except so far as the contrary intention appears, a word or
expression that is used both in this Part and in the Model Law (whether
or not a particular meaning is given to it by the Model Law) has, in this
Part, the same meaning as it has in the Model Law.

Model Law to have force of law
23 (1) Subject to this Part, the Model Law has the force of law in
Bermuda.

(2) In the Model Law—

(a) "State" means Bermuda and any foreign country;

(b) "this State" means Bermuda;

(c) "different States" shall be treated as including a reference to
Bermuda and any other place;

(d) "any agreement in force between this State and any other
State or States" shall be treated as being a reference to any
Convention or Treaty that binds Bermuda and any other
place that has the force of law in Bermuda.

Interpretation of Model Law—use of extrinsic material
24 For the purposes of interpreting the Model Law, reference may be
made to the documents of—

(a) the United Nations Commission on International Trade
Law, including but not limited to, documents of its
Secretariat submitted to the Commission and the
Summary Records of sessions of the Commission; and

(b) the Commission's working group for the preparation of
the Model Law relating to the Model Law.

Court specified for purposes of Article 6 of Model Law
25 The courts that are competent to perform the functions referred
to in Article 6 of the Model Law are as follows:

(a) for the purposes of Articles 11(3), 11(4), 13(3), 14 and
16(3) of the Model Law, the Supreme Court and there is
no right of appeal from a decision of that court;

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(b) for the purposes of Article 34(2) of the Model Law, the
Court of Appeal and there is no right of appeal from a
decision of that court.

Orders under Article 17 of the Model Law
26 Chapter VIII of the Model Law applies to an order by an arbitral
tribunal 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 a measure
referred to in paragraph (a),

as if any reference in that Chapter to an arbitral award or an award were
a reference to such an order.

Articles 34 and 36 of Model Law—public policy
27 Without limiting the generality of Articles 34(2)(b)(ii) and
36(1)(b)(ii) of the Model Law, it is declared, for removing doubts, that, for
the purposes of Articles 34(2)(b)(ii) and 36(1)(b)(ii), an award is in conflict
with the public policy of Bermuda if the making of the award was
induced or affected by fraud or corruption.

Chapter VIII of Model Law not to apply in certain cases
28 Where, but for this section, both Chapter VIII of the Model Law
and Part IV of this Act would apply in relation to an award, Chapter VIII
of the Model Law does not apply in relation to the award.

Settlement of dispute otherwise than in accordance with Model Law
29 Where the parties to an arbitration agreement 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 not to be settled in
accordance with the Model Law, the Model Law does not apply in relation
to the settlement of that dispute and in such a case unless otherwise
agreed in writing by the parties the Arbitration Act 1986 shall apply.

Failure of an arbitrator to participate in proceedings
30 (1) Any resignation by an arbitrator shall be addressed to the
arbitral tribunal and shall not be effective unless the arbitral tribunal
determines that there are sufficient reasons to accept the resignation,
and if the arbitral tribunal so determines the resignation becomes
effective on the date designated by the arbitral tribunal.

(2) If an arbitrator on a three-person or five-person arbitral
tribunal fails to participate in the arbitration, the other arbitrators have,
unless the parties otherwise agree, the power in their sole discretion to
continue the arbitration and to make any decision, ruling or award,
notwithstanding the non-participation of that arbitrator.

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(3) In determining whether to continue the arbitration or to
render any decision, ruling, or award without the participation of an
arbitrator, the other arbitrators shall take into account the stage of the
arbitration, the reason, if any, expressed by the arbitrator for his non-
participation and such other matters as they consider appropriate in the
circumstances of the case.

(4) In the event of the other arbitrators determining not to
continue the arbitration without the non-participating arbitrator, the
arbitral tribunal shall declare the office vacant and a substitute
arbitrator shall be appointed pursuant to Article 15 of the Model Law,
unless the parties agree on a different method of appointment.

Interest
31 (1) Unless the parties to an arbitration agreement have
(whether in the agreement or in any other document in writing) otherwise
agreed, where 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 subsections (2) and
(4), include in the sum for which the award is made interest, at such
reasonable rate as the tribunal determines on the whole or any part of
the money, 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) Subsection (1) does not apply in relation to any amount
upon which interest is payable as of right whether by virtue of an
agreement or otherwise.

(3) Unless the parties to an arbitration agreement have
(whether in the agreement or in any other document in writing) otherwise
agreed, where an arbitral tribunal makes an award for the payment of
money, the tribunal may, subject to subsection (4) direct that interest, at
such reasonable rate as the tribunal determines, is payable, from the
day of the making of the award or such later day as the tribunal
specifies, on so much of the money as is from time to time unpaid and
any interest that so accrues shall form part of the award.

(4) Where interest is included in the sum referred to in
subsection (1) or payable pursuant to subsection (3) the following
applies:

(a) if the award is made in a currency other than the
currency of Bermuda, the Interest Credit Charges
(Regulations) Act 1975 does not apply;

(b) if the award is made in the currency of Bermuda, the
Interest Credit Charges (Regulations) Act 1975 applies.

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Costs
32 (1) Unless the parties to an arbitration agreement have
(whether in the agreement or in any other document in writing) otherwise
agreed, the costs of an arbitration, including—

(a) fees and expenses of the arbitrator and the costs of
expert advice and of other assistance required by the
arbitral tribunal;

(b) legal fees and expenses of the parties, their
representatives, witnesses and expert witnesses;

(c) administration fees and expenses of an arbitral
institution; and

(d) any other expenses incurred in connection with the
arbitral proceedings,

shall be in the discretion of the arbitral tribunal.

(2) Unless the parties to an arbitration agreement have
(whether in the agreement or in any other document in writing) otherwise
agreed, an arbitral tribunal may in making an award—

(a) direct to whom, by whom, and in what manner, the
whole or any part of the costs that it awards shall be
paid; and

(b) fix the amount of costs to be so paid or any part of those
costs.

Immunity of participants in arbitration
33 No arbitrator, party, party representative or assistant, witness or
expert shall be subject to service of process on any civil matter relating to
the dispute in respect of the arbitration under this Act while present in
Bermuda for the purpose of arranging for or participating in arbitration
pursuant to this Act.

Non-liability of arbitrator
34 An arbitrator is not liable for any act or omission in the capacity
of arbitrator in connection with any arbitration conducted under this Act
except that he may be liable for the consequences of conscious and
deliberate wrongdoing.

Conduct of proceedings, witnesses, etc.
35 (1) Unless a contrary intention is expressed therein, every
arbitration agreement shall, where such a provision is applicable to the
arbitration, be treated as containing a provision that the arbitral tribunal
has power to examine witnesses on oath or affirmation and also power to

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administer oaths to, or take the affirmations of, witnesses in the
arbitration.

(2) Subject to section 10, an arbitral tribunal may receive any
evidence that the tribunal considers relevant and, unless the parties
have otherwise agreed, shall not be bound by rules of evidence applicable
in Bermuda.

(3) Any party to an arbitration under an arbitration agreement
may sue out a writ of subpoena ad testificandum or a writ of subpoena
duces tecum but no person shall be compelled under any such writ to
produce any document which he could not be compelled to produce on
the trial of an action, and the Court may order that a writ of subpoena ad
testificandum or of subpoena duces tecum shall issue to compel the
attendance before an arbitral tribunal of a witness wherever he may be
within Bermuda.

(4) The Court may also order that a writ of habeas corpus shall
issue to bring up a prisoner for examination before an arbitral tribunal.

(5) The Court shall have, for the purpose of and in relation to
an arbitration, the same power of making orders in respect of—

(a) examination on oath of any witness before an officer of
the Court or any other person, and the issue of a
commission or request for the examination of a witness
out of the jurisdiction;

(b) the preservation, interim custody or sale of any goods
which are the subject matter of the arbitration;

(c) securing the amount in dispute in the arbitration;

(d) the detention, preservation or inspection of any property
or thing which is the subject of the aribtration or as to
which any question may arise therein, and authorizing
for any of the purposes aforesaid any person to enter
upon or into any land or building in the possession of
any party to the arbitration, or authorizing any samples
to be taken or any observation to be made or experiment
to be tried which may be necessary or expedient for the
purpose of obtaining full information or evidence; and

(e) interim injunctions or the appointment of a receiver,

as it has for the purpose of and in relation to an action or matter
in the Court except that nothing in this subsection shall be
taken to prejudice any power which may be vested in an
arbitrator of making orders with respect to any of the matters
aforesaid.

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Interim, interlocutory or partial awards
36 Unless a contrary intention is expressed therein, it shall be an
implied term in every arbitration agreement that the arbitral tribunal
may, if the tribunal thinks fit, make an interim, interlocutory or partial
award, and any reference in this Part to an award includes a reference to
an interim, interlocutory or partial award.

Representation in proceedings
37 (1) Where, in accordance with the Model Law, with the
agreement of the parties or at the request of a party, as the case may be,
the arbitral tribunal holds oral hearings for the presentation of evidence
or for oral argument, or conducts proceedings on the basis of documents
or other materials, the following provisions shall, without prejudice to the
Model Law, apply.

(2) A party may appear in person before an arbitral tribunal
and may be represented—

(a) by himself;

(b) by a duly qualified legal practitioner from any legal
jurisdiction of that party's choice; or

(c) by any other person of that party's choice.

(3) A legal practitioner or a person, referred to in paragraphs
(2)(b) or (c) respectively, while acting on behalf of a party to an arbitral
proceeding to which this Part applies, including appearing before an
arbitral tribunal, shall not thereby be taken to have breached any law
regulating admission to, or the practice of, the profession of the law
within Bermuda.

(4) Where, subject to the agreement of the parties, an arbitral
tribunal conducts proceedings on the basis of documents and other
materials, such documents and materials may be prepared and
submitted by any legal practitioner or person who would, under
subsection (2), be entitled to appear before the tribunal, and, in such a
case, subsection (3) shall apply with the same force and effect to such a
legal practitioner or person.

Transitional
38 This Part does not affect any arbitration commenced, within the
meaning of Article 21 of the Model Law, before the operative date of this
Act, but applies to an arbitration so commenced on or after the operative
date of this Act under an agreement made before the operative date of
this Act.

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PART IV
ENFORCEMENT OF CONVENTION AWARDS

Effect this Part
39 This Part shall have effect with respect to the enforcement of
Convention awards.

Effect of Convention awards
40 (1) A Convention award shall, subject to this Part, be
enforceable in Bermuda either by action or may by leave of the Court, be
enforced in the same manner as a judgment or order to the same effect
and, where leave is so given, judgment may be entered in terms of the
award.

(2) Any Convention award which would be enforceable under
this Part shall be treated as binding for all purposes on the persons as
between whom it was made, and may accordingly be relied on by any of
those persons by way of defence, set off or otherwise in any legal
proceedings in Bermuda and any reference in this Part to enforcing a
Convention award shall be construed as including references to relying
on such an award.

Evidence
41 The party seeking to enforce a Convention award must
produce—

(a) the duly authenticated original award or a duly certified
copy of it;

(b) the original arbitration agreement or a duly certified
copy of it; and

(c) where the award or agreement is in a foreign language, a
translation of it certified by an official or sworn
translator or by a diplomatic or consular agent.

Refusal of enforcement
42 (1) Enforcement of a Convention award shall not be refused
except in the cases mentioned in this section.

(2) Enforcement of a Convention award may be refused if the
person against whom it is invoked proves —

(a) that a party to the arbitration agreement was (under the
law applicable to him) under some incapacity; or

(b) that the arbitration agreement was not valid under the
law to which the parties subjected it or, failing any

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indication thereon, under the law of the country where
the award was made; or

(c) that he 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

(d) subject to subsection (4), that the award deals with a
difference 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; or

(e) that the composition of the arbitral authority or the
arbitral procedure was not in accordance with the
agreement of the parties or, failing such agreement, with
the law of the country where the arbitration took place;
or

(f) that 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, it was made.

(3) Enforcement of a Convention award may also be refused if
the award is in respect of a matter which is not capable of settlement by
arbitration, or if it would be contrary to public policy to enforce the
award.

(4) A Convention award which contains decisions on matters
not submitted to arbitration may be enforced to the extent that it
contains decisions on matters submitted to arbitration which can be
separated from those on matters not so submitted.

(5) Where an application for the setting aside or suspension of
a Convention award has been made to such a competent authority as is
mentioned in subsection (2)(f), the Court before which enforcement of the
award is sought may, if it thinks fit, adjourn the proceedings and may,
on the application of the party seeking to enforce the award, order the
other party to give security.

Saving
43 Nothing in this Part shall prejudice any right to enforce or rely
on an award under this Part or otherwise.

Order to be conclusive evidence
44 A certificate purporting to be issued under the hand of the
Deputy Governor to the effect that Her Majesty has by Order in Council
declared that any State specified in the certificate is a party to the New

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York Convention shall be conclusive evidence in the proceedings that
that State is a party to that Convention on the date of the certificate.

PART V
GENERAL

Hearing of proceedings
45 Subject to the Constitution, proceedings in any court under this
Act shall on the application of any party to the proceedings be heard
otherwise than in open court.

Restrictions on reporting of proceedings
46 (1) This section applies to proceedings in any court under this
Act heard otherwise than in open court.

(2) A court in which proceedings to which this section applies
are being heard shall, on the application of any party to the proceedings,
give directions as to what information, if any, relating to the proceedings
may be published.

(3) A court shall not give a direction under subsection (2)
permitting information to be published unless—

(a) all parties to the proceedings agree that such
information may be published; or

(b) the court is satisfied that the information, if published in
accordance with such directions as it may give, would
not reveal any matter, including the identity of any party
to the proceedings, that any party to the proceedings
reasonably wishes to remain confidential.

(4) Notwithstanding subsection (3), where a court gives a
judgment in respect of proceedings to which this section applies and
considers that judgment to be of major legal interest, it may direct that
reports of the judgment may be published in law reports and
professional publications but, if any party to the proceedings reasonably
wishes to conceal any matter, including the fact that he was such a
party, the court shall

(a) give directions as to the action that shall be taken to
conceal that matter in the law reports and the
professional publications; and

(b) if it considers that a report published in accordance with
directions given under paragraph (a) would be likely to
reveal that matter, direct that no law report or
professional publication shall be published until after

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the end of such period, not exceeding ten years, as it
considers appropriate.

Costs in respect of unqualified person
47 Section 31 of the Bermuda Bar Act 1974, (which provides that
no costs in respect of anything done by an unqualified person acting as a
barrister and attorney shall be recoverable in any action, suit or matter)
shall not apply to the recovery of costs directed by an award under this
Act.

Enforcement of award
48 An award on an arbitration agreement may, by leave of the
Court, be enforced in the same manner as a judgment or order to the
same effect and, where leave is so given, judgment may be entered in
terms of the award.

Crown to be bound
49 This Act except Part IV binds the Crown.

Amends Arbitration Act 1986
50 The Arbitration Act 1986 is amended as follows:

(a) in section 2, repeal the definition of the expressions
"Convention award" and "the New York Convention";

(b) repeal Part IV;

(c) repeal the First Schedule;

(d) delete the heading "SECOND SCHEDULE" and
substitute therefor the heading "SCHEDULE".

Amends Limitation Act 1984
51 The Limitation Act 1984 is amended as follows:

(a) in the preamble, insert immediately after the word
"arbitrations" the words ", to provide for any law relating
to the limitation of actions to be treated, for the purposes
of cases in which effect is given to foreign law or to
determination by foreign courts, as a matter of
substance rather than as a matter of procedure";

(b) insert immediately above the heading "PART III" the
following Part:

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"PART IIA

FOREIGN LIMITATION PERIODS

Application of foreign limitation law
34A (1) Subject to the following provisions of this
Part, where in any action or proceedings in a court in
Bermuda the law of any other country falls (in
accordance with rules of private international law
applicable by any such court) to be taken into account
in the determination of any matter—

(a) the law of that other country relating to
limitation shall apply in respect of that
matter for the purposes of the action or
proceedings; and

(b) except where that matter falls within
subsection (2), the law of Bermuda
relating to limitation shall not so apply.

(2) A matter falls within this subsection of it is
a matter in the determination of which both the law of
Bermuda and the law of some other country fall to be
taken into account.

(3) The law of Bermuda shall determine for the
purposes of any law applicable by virtue of subsection
(1)(a) whether, and the time at which, proceedings have
been commenced in respect of any matter; and,
accordingly, section 36 applies in relation to time limits
applicable by virtue of subsection (1)(a) as it applies in
relation to time limits under this Act.

(4) A court in Bermuda, in exercising under
subsection (1)(a) any discretion conferred by the law of
any other country, shall so far as practicable exercise
that discretion in the manner in which it is exercised in
comparable cases by the courts of that other country.

(5) In this section "law", in relation to any
country, shall not include rules of private international
law applicable by the courts of that country or, in the
case of Bermuda, this Part.

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Exceptions to 34A
34B (1) In any case in which the application of
section 34A would to any extent conflict (whether under
subsection (2) or otherwise) with public policy, that
section shall not apply to the extent that its application
would so conflict.

(2) The application of section 34A in relation to
any action or proceedings shall conflict with public
policy to the extent that its application would cause
undue hardship to a person who is, or might be made, a
party to the action or proceedings.

(3) Where, under a law applicable by virtue of
section 34A(1)(a) for the purposes of any action or
proceedings, a limitation period is or may be extended or
interrupted in respect of the absence of a party to the
action or proceedings from any specified jurisdiction or
country, so much of that law as provides for the
extension or interruption shall be disregarded for those
purposes.

Foreign judgments on limitation points
34C Where a court in any country outside Bermuda
has determined any matter wholly or partly by reference
to the law of that or any other country (including
Bermuda) relating to limitation, then, for the purposes of
the law relating to the effect to be given in Bermuda to
that determination, that court shall, to the extent that it
has so determined the matter, be deemed to have
determined it on its merits.

Meaning of law relating to limitation
34D (1) Subject to subsection (3), references in this
Part to the law of any country (including Bermuda)
relating to limitation shall, in relation to any matter, be
construed as references to so much of the relevant law of
that country as (in any manner) makes provision with
respect to a limitation period applicable to the bringing
of proceedings in respect of that matter in the courts of
that country and shall include—

(a) references to so much of that law as
relates to, and to the effect of, the
application, extension, reduction or
interruption of that period; and

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(b) a reference, where under that law there
is no limitation period which is so
applicable, to the rule that such
proceedings may be brought within an
indefinite period.

(2) In subsection (1) "relevant law", in relation
to any country, means the procedural and substantive
law applicable, apart from any rules of private
international law, by the courts of that country.

(3) References in this Part to the law of
Bermuda relating to limitation shall not include the rules
by virtue of which a court may, in the exercise of any
discretion, refuse equitable relief on the grounds of
acquiescence or otherwise; but, in applying those rules
to a case in relation to which the law of any country
outside Bermuda is applicable by virtue of section
34A(1)(a) (not being a law that provides for a limitation
period that has expired), a court in Bermuda shall have
regard, in particular, to the provisions of the law that is
so applicable.

Application of this Part to arbitrations
34E The references to any other limitation enactment
in section 35 include references to sections 34A, 34B
and 34D; and accordingly, in section 35(5), the reference
to the time prescribed by a limitation enactment has
effect for the purposes of any case to which section 34A
applies as a reference to the limitation period, if any,
applicable by virtue of section 34A.

Part applies to Crown
34F (1) This Part applies in relation to any action
or proceedings by or against the Crown as it applies in
relation to actions and proceedings to which the Crown
is not a party.

(2) For the purposes of this section references
to an action or proceedings by or against the Crown
include references to any action or proceedings by or
against any Government department or any officer of the
Crown as such or any person acting on behalf of the
Crown.

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Transitional provision
34G Nothing in this Part—

(a) affects any action, proceedings or
arbitration commenced in Bermuda
before the date of the coming into
operation of this Part; or

(b) applies in relation to any matter if the
limitation period which, apart from this
Part, would have been applied in respect
of that matter in Bermuda expired
before the date of the coming into
operation of this Part.".

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SCHEDULE 1 Section 2

UNCITRAL CONCILIATION RULES

(AS ADOPTED BY THE UNITED NATIONS COMMISSION ON
INTERNATIONAL TRADE LAW ON 23 JULY 1980)

APPLICATION OF THE RULES
Article 1

1 These Rules apply to conciliation of disputes arising out of or
relating to a contractual or other legal relationship where the parties
seeking an amicable settlement of their dispute have agreed that the
UNCITRAL Conciliation Rules apply.

2 The parties may agree to exclude or vary any of these Rules at
any time.

3 Where any of these Rules is in conflict with a provision of law
from which the parties cannot derogate, that provision prevails.

COMMENCEMENT OF CONCILIATION PROCEEDINGS
Article 2

1 The party initiating conciliation sends to the other party a
written invitation to conciliate under these Rules, briefly identifying the
subject of the dispute.

2 Conciliation proceedings commence when the other party
accepts the invitation to conciliate. If the acceptance is made orally, it is
advisable that it be confirmed in writing.

3 If the other party rejects the invitation, there will be no
conciliation proceedings.

4 If the party initiating conciliation does not receive a reply within
thirty days from the date on which he sends the invitation, or within
such other period of time as specified in the invitation, he may elect to
treat this as a rejection of the invitation to conciliate. If he so elects, he
informs the other party accordingly.

NUMBER OF CONCILIATORS
Article 3

There shall be one conciliator unless the parties agree that there shall be
two or three conciliators. Where there is more than one conciliator, they
ought, as a general rule, to act jointly.

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APPOINTMENT OF CONCILIATORS
Article 4

1 (a) In conciliation proceedings with one conciliator, the
parties shall endeavour to reach agreement on the name
of a sole conciliator;

(b) In conciliation proceedings with two conciliators, each
party appoints one conciliator;

(c) In conciliation proceedings with three conciliators, each
party appoints one conciliator.

The parties shall endeavour to reach agreement on the
name of the third conciliator.

2 Parties may enlist the assistance of an appropriate institution or
person in connexion with the appointment of conciliators. In particular,

(a) a party may request such an institution or person to
recommend the names of suitable individuals to act as
conciliator; or

(b) the parties may agree that the appointment of one or
more conciliators be made directly by such an institution
or person.

In recommending or appointing individuals to act as conciliator, the
institution or person shall have regard to such considerations as are
likely to secure the appointment of an independent and impartial
conciliator and, with respect to a sole or third conciliator, shall take into
account the advisability of appointing a conciliator of a nationality other
than the nationalities of the parties.

SUBMISSION OF STATEMENTS TO CONCILIATOR
Article 5

1 The conciliator1, upon his appointment, requests each party to
submit to him a brief written statement describing the general nature of
the dispute and the points at issue. Each party sends a copy of his
statement to the other party.

2 The conciliator may request each party to submit to him a
further written statement of his position and the facts and grounds in
support thereof, supplemented by any documents and other evidence
that such party deems appropriate. The party sends a copy of his
statement to the other party.

1In this and all following articles, the term 'conciliator' applies to a sole conciliator, two or three

conciliators, as the case may be.

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3 At any stage of the conciliation proceedings the conciliator may
request a party to submit to him such additional information as he
deems appropriate.

REPRESENTATION AND ASSISTANCE
Article 6

The parties may be represented or assisted by persons of their choice.
The names and addresses of such persons are to be communicated in
writing to the other party and to the conciliator: such communication is
to specify whether the appointment is made for purposes of
representation or of assistance.

ROLE OF CONCILIATOR
Article 7

1 The conciliator assists the parties in an independent and
impartial manner in their attempt to reach an amicable settlement of
their dispute.

2 The conciliator will be guided by principles of objectivity, fairness
and justice, giving consideration to, among other things, the rights and
obligations of the parties, the usages of the trade concerned and the
circumstances surrounding the dispute, including any previous business
practices between the parties.

3 The conciliator may conduct the conciliation proceedings in such
a manner as he considers appropriate, taking into account the
circumstances of the case, the wishes the parties may express, including
any request by a party that the conciliator hear oral statements, and the
need for a speedy settlement of the dispute.

4 The conciliator may, at any stage of the conciliation proceedings,
make proposals for a settlement of the dispute. Such proposals need not
be in writing and need not be accompanied by a statement of the reasons
therefor.

ADMINISTRATIVE ASSISTANCE
Article 8

In order to facilitate the conduct of the conciliation proceedings, the
parties, or the conciliator with the consent of the parties, may arrange for
administrative assistance by a suitable institution or person.

COMMUNICATION BETWEEN CONCILIATOR AND PARTIES
Article 9

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1 The conciliator may invite the parties to meet with him or may
communicate with them orally or in writing. He may meet or
communicate with the parties together or with each of them separately.

2 Unless the parties have agreed upon the place where meetings
with the conciliator are to be held, such place will be determined by the
conciliator, after consultation with the parties, having regard to the
circumstances of the conciliation proceedings.

DISCLOSURE OF INFORMATION
Article 10

When the conciliator receives factual information concerning the dispute
from a party, he discloses the substance of that information to the other
party in order that the other party may have the opportunity to present
any explanation which he considers appropriate. However, when a party
gives any information to the conciliator subject to a specific condition
that it be kept confidential, the conciliator does not disclose that
information to the other party.

CO-OPERATION OF PARTIES WITH CONCILIATOR
Article 11

The parties will in good faith co-operate with the conciliator and, in
particular, will endeavour to comply with requests by the conciliator to
submit written materials, provide evidence and attend meetings.

SUGGESTIONS BY PARTIES FOR SETTLEMENT OF DISPUTE
Article 12

Each party may, on his own initiative or at the invitation of the
conciliator, submit to the conciliator suggestions for the settlement of the
dispute.

SETTLEMENT AGREEMENT
Article 13

1 When it appears to the conciliator that there exist elements of a
settlement which would be acceptable to the parties, he formulates the
terms of a possible settlement and submits them to the parties for their
observations. After receiving the observations of the parties, the
conciliator may reformulate the terms of a possible settlement in the light
of such observations.

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2 If the parties reach agreement on a settlement of the dispute,
they draw up and sign a written settlement agreement2. If requested by
the parties, the conciliator draws up, or assists the parties in drawing
up, the settlement agreement.

3 The parties by signing the settlement agreement put an end to
the dispute and are bound by the agreement.

CONFIDENTIALITY
Article 14

The conciliator and the parties must keep confidential all matters
relating to the conciliation proceedings. Confidentiality extends to the
settlement agreement, except where its disclosure is necessary for
purposes of implementation and enforcement.

TERMINATION OF CONCILIATION PROCEEDINGS
Article 15

The conciliation proceedings are terminated:

(a) By the signing of the settlement agreement by the
parties, on the date of the agreement; or

(b) By a written declaration of the conciliator, after
consultation with the parties, to the effect that further
efforts at conciliation are no longer justified, on the date
of the declaration; or

(c) By a written declaration of the parties addressed to the
conciliator to the effect that the conciliation proceedings
are terminated, on the date of the declaration; or

(d) By a written declaration of a party to the other party and
the conciliator, if appointed, to the effect that the
conciliation proceeding are terminated, on the date of
the declaration.

RESORT TO ARBITRAL OR JUDICIAL PROCEEDINGS
Article 16

The parties undertake not to initiate, during the conciliation proceedings,
any arbitral or judicial proceedings in respect of a dispute that is the
subject of the conciliation proceedings, except that a party may initiate

2The parties may wish to consider including in the settlement agreement a clause that any dispute

arising out of or relating to the settlement agreement shall be submitted to arbitration.

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arbitral or judicial proceedings where, in his opinion, such proceedings
are necessary for preserving his rights.

COSTS
Article 17

1 Upon termination of the conciliation proceedings, the conciliator
fixes the costs of the conciliation and gives written notice thereof to the
parties. The term 'costs' includes only;

(a) The fee of the conciliator which shall be reasonable in
amount;

(b) The travel and other expenses of the conciliator;

(c) The travel and other expenses of witnesses requested by
the conciliator with the consent of the parties;

(d) The cost of any expert advice requested by the
conciliator with the consent of the parties;

(e) The cost of any assistance provided pursuant to articles
4, paragraph (2)(b), and 8 of these Rules.

2 The costs, as defined above, are borne equally by the parties
unless the settlement agreement provides for a different apportionment.
All other expenses incurred by a party are borne by that party.

DEPOSITS
Article 18

1 The conciliator, upon his appointment, may request each party
to deposit an equal amount as an advance for the costs referred to in
article 17, paragraph (1) which he expects will be incurred.

2 During the course of the conciliation proceedings the conciliator
may request supplementary deposits in an equal amount from each
party.

3 If the required deposits under paragraphs (1) and (2) of this
article are not paid in full by both parties within thirty days, the
conciliator may suspend the proceedings or may make a written
declaration of termination to the parties, effective on the date of that
declaration.

4 Upon termination of the conciliation proceedings, the conciliator
renders an accounting to the parties of the deposits received and returns
any unexpended balance to the parties.

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ROLE OF CONCILIATOR IN OTHER PROCEEDINGS
Article 19

The parties and the conciliator undertake that the conciliator will not act
as an arbitrator or as a representative or counsel of a party in any
arbitral or judicial proceedings in respect of a dispute that is the subject
of the conciliation proceedings. The parties also undertake that they will
not present the conciliator as a witness in any such proceedings.

ADMISSIBILITY OF EVIDENCE IN OTHER PROCEEDINGS
Article 20

The parties undertake not to rely on or introduce as evidence in arbitral
or judicial proceedings, whether or not such proceedings relate to the
dispute that is the subject of the conciliation proceedings:

(a) Views expressed or suggestions made by the other party
in respect of a possible settlement of the dispute;

(b) Admissions made by the other party in the course of the
conciliation proceedings;

(c) Proposals made by the conciliator;

(d) The fact that the other party had indicated his
willingness to accept a proposal for settlement made by
the conciliator.

SCHEDULE 2 Section 2

UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL
ARBITRATION

(AS ADOPTED BY THE UNITED NATIONS COMMISSION ON
INTERNATIONAL TRADE LAW ON 21 JUNE 1985)

CHAPTER 1. GENERAL PROVISIONS

Article 1. Scope of application*

* Article headings are for reference purposes only and are not to be used for purposes of

interpretation.

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(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) of this article:

(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 affect any other law of this State by
virtue of which certain disputes may not be submitted to arbitration or
may be submitted to arbitration only according to provisions other than
those of this Law.

** 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; investment; 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.

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Article 2. Definitions 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 authorize 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.

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Article 4. Waiver of right to object

A party who knows that any provision 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 . . . [Each State enacting this model law
specifies the court, courts or, where referred to therein, other authority
competent to perform these functions.]

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.

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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) of this article
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) of this article.

(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 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,

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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) of
this article 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.

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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) of this article.

(2) Failing such agreement, a party 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
circumstance 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) of this article is not
successful, the challenging party may request, 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.

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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) of this article 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 party 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 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.

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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) of this
article, 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. Statements 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

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supporting his claim, the points at issue and the relief or 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.

(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. Hearings 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

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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.

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 authorized 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.

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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 authorized 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 statement 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) of this article 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)
of this article.

(2) The arbitral tribunal shall issue an order for the
termination of the arbitral proceedings when:

(a) the claimant withdraws his claim, unless the respondent
objects thereto and the arbitral tribunal recognizes a

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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) of this article 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) of this article.

(5) The provisions of article 31 shall apply to a correction or
interpretation of the award or to an additional award.

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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) of this article.

(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 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

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(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 arbitral 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 other 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 recognized 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:

(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

*** 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.

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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
decisions 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
recognized 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) of this article,
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.

SCHEDULE 3 Section 2

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UNITED NATIONS CONFERENCE ON INTERNATIONAL COMMERCIAL
ARBITRATION

CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF
FOREIGN ARBITRAL AWARDS, DONE AT NEW YORK, ON 10 JUNE 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 noti-
fying extension under article X hereof, any State may on the basis of re-
ciprocity 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 differ-
ences arising out of the 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 recognize 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 re-
spect of a defined legal relationship, whether contractual or not, con-
cerning 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 con-
tained 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, 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.

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Article III

Each Contracting State shall recognize 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 this Convention applies than are imposed on
the recognition or enforcement of domestic arbitral awards.

Article IV

1 To obtain the recognition and enforcement mentioned in the pre-
ceding 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 lan-
guage of the country in which the award is relied upon, the party apply-
ing for recognition and enforcement of the award shall produce a trans-
lation 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 enforce-
ment is sought, proof that–

(a) the parties to the agreement referred to in article II were,
under the law applicable to them, under some incapac-
ity, or the said agreement is not valid under the law to
which the parties have subjected it or, failing any indi-
cation 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 arbitra-

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tion, or it 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, that part of the
award which contains decisions on matters submitted to
arbitration may be recognized 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 accor-
dance 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

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.

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2 The Geneva Protocol on Arbitration Clauses 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 sig-
nature 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
specialized 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 ratifica-
tion 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 ac-
cession 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 declara-
tion 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 noti-
fication 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 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.

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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 constitu-
tional 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 of this Convention shall, at the re-
quest of any other Contracting State transmitted
through the Secretary-general of the United Nations,
supply a statement of the law and practice of the federa-
tion 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 legisla-
tive or other action.

Article XII

1 This Convention shall come into force on the ninetieth day fol-
lowing the date of deposit of the third instrument of ratification or acces-
sion.

2 For each State ratifying or acceding to this Convention after the
deposit of the third instrument of ratification or accession, this Conven-
tion shall enter into force on the ninetieth day after deposit by 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-

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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

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 con-
templated 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.

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