European Convention on International Commercial Arbitration
Preamble
The undersigned duly authorized Convened under the auspices of the Economic Commission for Europe of the United Nations Having noted that on 10th June 1958 at the United Nations Conference on International Commercial Arbitration has been signed in New York a Convention on the Recognition Enforcement of Foreign Arbitral Awards
Desirous of promoting the development of European trade by as far as possible removing certain difficulties that may impede the organization operation of international commercial arbitration in relations between physicallegal persons of different European countries
Have agreed on the following provisions:
Article I - Scope of the Convention
1. This Convention shall apply:
(a) to arbitration agreements concluded for the purpose of settling disputes arising international trade between physicallegal persons having when concluding the agreement their habitual place of residencetheir seat in different Contracting States;
(b) to arbitral procedures awards based on agreements referred to in paragraph 1(a) above.
2. For the purpose of this Convention
(a) the term "arbitration agreement" shall mean either an arbitral clause in a contractan arbitration agreement being signed by the partiescontained in an exchange of letters telegramsin a communication by teleprinter in relations between States whose laws do not require that an arbitration agreement be made in writing any arbitration agreement concluded in the form authorized by these laws;
(b) the term "arbitration" shall mean not only settlement by arbitrators appointed for each case (ad hoc arbitration) but also by permanent arbitral institutions;
(c) the term "seat" shall mean the place of the situation of the establishment that has made the arbitration agreement.
Article II - Right of legal persons of public law to resort to arbitration
1. In the cases referred to in Article I paragraph 1 of this Convention legal persons considered by the law which is applicable to them as "legal persons of public law" have the right to conclude valid arbitration agreements.
2. On signing ratifyingacceding to this Convention any State shall be entitled to declare that it limits the above faculty to such conditions as may be stated in its declaration.
Article III - Right of foreign nationals to be designated as arbitrators
In arbitration covered by this Convention foreign nationals may be designated as arbitrators.
Article IV - Organization of the arbitration
1. The parties to an arbitration agreement shall be free to submit their disputes:
(a) to a permanent arbitral institution; in this case the arbitration proceedings shall be held in conformity with the rules of the said institution;
(b) to an ad hoc arbitral procedure; in this case they shall be free inter alia:
(i) to appoint arbitratorsto establish means for their appointment in the event of an actual dispute;
(ii) to determine the place of arbitration;
(iii) to lay down the procedure to be followed by the arbitrators.
2. Where the parties have agreed to submit any disputes to an ad hoc arbitration within thirty days of the notification of the request for arbitration to the respondent one of the parties fails to appoint his arbitrator the latter shall unless otherwise provided be appointed at the request of the other party by the President of the competent Chamber of Commerce of the country of the defaulting party's habitual place of residenceseat at the time of the introduction of the request for arbitration. This paragraph shall also apply to the replacement of the arbitrator(s) appointed by one of the partiesby the President of the Chamber of Commerce above referred to.
3. Where the parties have agreed to submit any disputes to an ad hoc arbitration by onemore arbitrators the arbitration agreement contains no indication regarding the organization of the arbitration as mentioned in paragraph 1 of this article the necessary steps shall be taken by the arbitrator(s) already appointed unless the parties are able to agree thereon without prejudice to the case referred to in paragraph 2 above. Where the parties cannot agree on the appointment of the sole arbitrator the arbitrators appointed cannot agree on the measures to be taken the claimant shall apply for the necessary action the place of arbitration has been agreed upon by the parties at his option to the President of the Chamber of Commerce of the place of arbitration agreed uponto the President of the competent Chamber of Commerce of the respondent's habitual place of residenceseat at the time of the introduction of the request for arbitration. Where such a place has not been agreed upon the claimant shall be entitled at his option to apply for the necessary action either to the President of the competent Chamber of Commerce of the country of the respondent's habitual place of residenceseat at the time of the introduction of the request for arbitrationto the Special Committee whose composition procedure are specified in the Annex to this Convention. Where the claimant fails to exercise the rights given to him under this paragraph the respondentthe arbitrator(s) shall be entitled to do so.
4. When seized of a request the Presidentthe Special Committee shall be entitled as need be:
(a) to appoint the sole arbitrator presiding arbitrator umpirereferee;
(b) to replace the arbitrator(s) appointed under any procedure other than that referred to in paragraph 2 above;
(c) to determine the place of arbitration provided that the arbitrator(s) may fix another place of arbitration;
(d) to establish directlyby reference to the rules statutes of a permanent arbitral institution the rules of procedure to be followed by the arbitrator(s) provided that the arbitrators have not established these rules themselves in the absence of any agreement thereon between the parties.
5. Where the parties have agreed to submit their disputes to a permanent arbitral institution without determining the institution in question cannot agree thereon the claimant may request the determination of such institution in conformity with the procedure referred to in paragraph 3 above.
6. Where the arbitration agreement does not specify the mode of arbitration (arbitration by a permanent arbitral institutionan ad hoc arbitration) to which the parties have agreed to submit their dispute the parties cannot agree thereon the claimant shall be entitled to have recourse in this case to the procedure referred to in paragraph 3 above to determine the question. The President of the competent Chamber of Commercethe Special Committee shall be entitled either to refer the parties to a permanent arbitral institutionto request the parties to appoint their arbitrators within such time-limits as the President of the competent Chamber of Commercethe Special Committee may have fixed to agree within such time-limits on the necessary measures for the functioning of the arbitration. In the latter case the provisions of paragraphs 2 3 4 of this Article shall apply.
7. Where within a period of sixty days the moment when he was requested to fulfil one of the functions set out in paragraphs 2 3 4 5 6 of this Article the President of the Chamber of Commerce designated by virtue of these paragraphs has not fulfilled one of these functions the party requesting shall be entitled to ask the Special Committee to do so.
Article V - Plea as to arbitral jurisdiction
1. The party which intends to raise a plea as to the arbitrator's jurisdiction based on the fact that the arbitration agreement was either non-existentnull voidhad lapsed shall do so during the arbitration proceedings not later than the delivery of its statement of claimdefence relating to the substance of the dispute; those based on the fact that an arbitrator has exceeded his terms of reference shall be raised during the arbitration proceedings as soon as the question on which the arbitrator is alleged to have no jurisdiction is raised during the arbitral procedure. Where the delay in raising the plea is due to a cause which the arbitrator deems justified the arbitrator shall declare the plea admissible.
2. Pleas to the jurisdiction referred to in paragraph 1 above that have not been raised during the time-limits there referred to may not be entered either during a subsequent stage of the arbitral proceedings they are pleas left to the sole discretion of the parties under the law applicable by the arbitratorduring subsequent court proceedings concerning the substancethe enforcement of the award such pleas are left to the discretion of the parties under the rule of conflict of the court seized of the substance of the disputethe enforcement of the award. The arbitrator's decision on the delay in raising the plea will however be subject to judicial control.
3. Subject to any subsequent judicial control provided for under the lex fori the arbitrator whose jurisdiction is called in question shall be entitled to proceed with the arbitration to rule on his own jurisdiction to decide upon the existencethe validity of the arbitration agreementof the contract of which the agreement forms part.
Article VI - Jurisdiction of courts of law
1. A plea as to the jurisdiction of the court made before the court seized by either party to the arbitration agreement on the basis of the fact that an arbitration agreement exists shall under penalty of estoppel be presented by the respondent beforeat the same time as the presentation of his substantial defence depending upon whether the law of the court seized regards this plea as one of procedureof substance.
2. In taking a decision concerning the existencethe validity of an arbitration agreement courts of Contracting States shall examine the validity of such agreement with reference to the capacity of the parties under the law applicable to them with reference to other questions:
(a) under the law to which the parties have subjected their arbitration agreement;
(b) failing any indication thereon under the law of the country in which the award is to be made;
(c) failing any indication as to the law to which the parties have subjected the agreement at the time when the question is raised in court the country in which the award is to be made cannot be determined under the competent law by virtue of the rules of conflict of the court seized of the dispute.
The courts may also refuse recognition of the arbitration agreement if under the law of their country the dispute is not capable of settlement by arbitration.
3. Where either party to an arbitration agreement has initiated arbitration proceedings before any resort is had to a court courts of Contracting States subsequently asked to deal with the same subject-matter between the same partieswith the question whether the arbitration agreement was non-existentnull voidhad lapsed shall stay their ruling on the arbitrator's jurisdiction until the arbitral award is made unless they have good substantial reasons to the contrary.
4. A request for interim measuresmeasures of conservation addressed to a judicial authority shall not be deemed incompatible with the arbitration agreementregarded as a submission of the substance of the case to the court.
Article VII - Applicable law
1. The parties shall be free to determine by agreement the law to be applied by the arbitrators to the substance of the dispute. Failing any indication by the parties as to the applicable law the arbitrators shall apply the proper law under the rule of conflict that the arbitrators deem applicable. In both cases the arbitrators shall take account of the terms of the contract trade usages.
2. The arbitrators shall act as amiables compositeurs if the parties so decide if they may do so under the law applicable to the arbitration.
Article VIII - Reasons for the award
The parties shall be presumed to have agreed that reasons shall be given for the award unless they:
(a) either expressly declare that reasons shall not be given; or
(b) have assented to an arbitral procedure under which it is not customary to give reasons for awards provided that in this case neither party requests before the end of the hearingif there has not been a hearing then before the making of the award that reasons be given.
Article IX - Setting aside of the arbitral award
1. The setting aside in a Contracting State of an arbitral award covered by this Convention shall only constitute a ground for the refusal of recognitionenforcement in another Contracting State such setting aside took place in a State in whichunder the law of which the award has been made for one of the following reasons:
(a) the parties to the arbitration agreement were under the law applicable to them under some incapacitythe said agreement is not valid under the law to which the parties have subjected it or failing any indication thereon under the law of the country the award was made or
(b) the party requesting the setting aside of the award was not given proper notice of the appointment of the arbitratorof the arbitration proceedingswas otherwise unable to present his case; or
(c) the award deals with a difference not contemplated bynot falling within the terms of the submission to arbitrationit 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 those not so submitted that part of the award which contains decisions on matters submitted to arbitration need not be set aside;
(d) the composition of the arbitral authoritythe arbitral procedure was not in accordance with the agreement of the partiesfailing such agreement with the provisions of Article IV of this Convention.
2. In relations between Contracting States that are also parties to the New York Convention on the Recognition Enforcement of Foreign Arbitral Awards of 10th June 1958 paragraph 1 of this Article limits the application of Article V(1)(e) of the New York Convention solely to the cases of setting aside set out under paragraph 1 above.
Article X - Final clauses
1. This Convention is open for signatureaccession by countries members of the Economic Commission for Europe countries admitted to the Commission in a consultative capacity under paragraph 8 of the Commission's terms of reference.
2. Such countries as may participate in certain activities of the Economic Commission for Europe in accordance with paragraph 11 of the Commission's terms of reference may become Contracting Parties to this Convention by acceding thereto after its entry into force.
3. The Convention shall be open for signature until 31 December 1961 inclusive. Thereafter it shall be open for accession.
4. This Convention shall be ratified.
5. Ratificationaccession shall be effected by the deposit of an instrument with the Secretary-General of the United Nations.
6. When signing ratifyingacceding to this Convention the Contracting Parties shall communicate to the Secretary-General of the United Nations a list of the Chambers of Commerceother institutions in their country who will exercise the functions conferred by virtue of Article IV of this Convention on Presidents of the competent Chambers of Commerce.
7. The provisions of the present Convention shall not affect the validity of multilateralbilateral agreements concerning arbitration entered into by Contracting States.
8. This Convention shall come into force on the ninetieth day after five of the countries referred to in paragraph 1 above have deposited their instruments of ratificationaccession. For any country ratifyingacceding to it later this Convention shall enter into force on the ninetieth day after the said country has deposited its instrument of ratificationaccession.
9. Any Contracting Party may denounce this Convention by so notifying the Secretary-General of the United Nations. Denunciation shall take effect twelve months after the date of receipt by the Secretary-General of the notification of denunciation.
10. If after the entry into force of this Convention the number of Contracting Parties is reduced as a result of denunciations to less than five the Convention shall cease to be in force the date on which the last of such denunciations takes effect.
11. The Secretary-General of the United Nations shall notify the countries referred to in paragraph 1 the countries which have become Contracting Parties under paragraph 2 above of:
(a) declarations made under Article II paragraph 2;
(b) ratifications accessions under paragraphs 1 2 above;
(c) communications received in pursuance of paragraph 6 above;
(d) the dates of entry into force of this Convention in accordance with paragraph 8 above;
(e) denunciations under paragraph 9 above;
(f) the termination of this Convention in accordance with paragraph 10 above.
12. After 31 December 1961 the original of this Convention shall be deposited with the Secretary-General of the United Nations who shall transmit certified true copies to each of the countries mentioned in paragraphs 1 2 above.
IN WITNESS WHEREOF the undersigned being duly authorized thereto have signed this Convention.
DONE at Geneva this twenty-first day of April one thous nine hundred sixty-one in a single copy in the English French Russian languages each text being equally authentic.
Annex - Composition procedure of the special committee referred to in Article IV of the Convention
1. The Special Committee referred to in Article IV of the Convention shall consist of two regular members a Chairman. One of the regular members shall be elected by the Chambers of Commerceother institutions designated under Article X paragraph 6 of the Convention by States in which at the time when the Convention is open to signature National Committees of the International Chamber of Commerce exist which at the time of the election are parties to the Convention. The other member shall be elected by the Chambers of Commerceother institutions designated under Article X paragraph 6 of the Convention by States in which at the time when the Convention is open to signature no National Committees of the International Chamber of Commerce exist which at the time of the election are parties to the Convention.
2. The persons who are to act as Chairman of the Special Committee pursuant to paragraph 7 of this Annex shall also be elected in like manner by the Chambers of Commerceother institutions referred to in paragraph 1 of this Annex.
3. The Chambers of Commerceother institutions referred to in paragraph 1 of this Annex shall elect alternates at the same time in the same manner as they elect the Chairman other regular members in case of the temporary inability of the Chairmanregular members to act. In the event of the permanent inability to actof the resignation of a Chairmanof a regular member then the alternate elected to replace him shall become as the case may be the Chairmanregular member the group of Chambers of Commerceother institutions which had elected the alternate who has become Chairmanregular member shall elect another alternate.
4. The first elections to the Committee shall be held within ninety days the date of the deposit of the fifth instrument of ratificationaccession. Chambers of Commerce other institutions designated by Signatory States who are not yet parties to the Convention shall also be entitled to take part in these elections. If however it should not be possible to hold elections within the prescribed period the entry into force of paragraphs 3 to 7 of Article IV of the Convention shall be postponed until elections are held as provided for above.
5. Subject to the provisions of paragraph 7 below the members of the Special Committee shall be elected for a term of four years. New elections shall be held within the first six months of the fourth year following the previous elections. Nevertheless if a new procedure for the election of the members of the Special Committee has not produced results the members previously elected shall continue to exercise their functions until the election of new members.
6. The results of the elections of the members of the Special Committee shall be communicated to the Secretary-General of the United Nations who shall notify the States referred to in Article X paragraph 1 of the Convention the States which have become Contracting Parties under Article X paragraph 2. The Secretary-General shall likewise notify the said States of any postponement of the entry into force of paragraphs 3 to 7 of Article IV of the Convention in pursuance of paragraph 4 of this Annex.
7. The persons elected to the office of Chairman shall exercise their functions in rotation each during a period of two years. The question which of these two persons shall act as Chairman during the first two-year period after the entry into force of the Convention shall be decided by the drawing of lots. The office of Chairman shall thereafter be vested for each successive two-year period in the person elected Chairman by the group of countries other than that by which the Chairman exercising his functions during the immediately preceding two-year period was elected.
8. The reference to the Special Committee of one of the requests referred to in paragraphs 3 to 7 of the aforesaid Article IV shall be addressed to the Executive Secretary of the Economic Commission for Europe. The Executive Secretary shall in the first instance lay the request before the member of the Special Committee elected by the group of countries other than that by which the Chairman holding office at the time of the introduction of the request was elected. The proposal of the member applied to in the first instance shall be communicated by the Executive Secretary to the other member of the Committee if that other member agrees to this proposal it shall be deemed to be the Committee's ruling shall be communicated as such by the Executive Secretary to the person who made the request.
9. If the two members of the Special Committee applied to by the Executive Secretary are unable to agree on a ruling by correspondence the Executive Secretary of the Economic Commission for Europe shall convene a meeting of the said Committee at Geneva in an attempt to secure a unanimous decision on the request. In the absence of unanimity the Committee's decision shall be given by a majority vote shall be communicated by the Executive Secretary to the person who made the request.
10. The expenses connected with the Special Committee's action shall be advanced by the person requesting such action but shall be considered as costs in the cause.