Investor Presentaiton
189
Enforcement
of arbitral
awards
permanent members, would be able to carry out
an in-depth scrutiny of the award and correct
substantive mistakes in the interpretation and
application of the law. So far, no formal appellate
body has been established or even designed,
either bilaterally or multilaterally.
When the treaty refers to ICSID or
UNCITRAL arbitration, the final character of the
award is provided for by the respective
arbitration rules. In addition, the treaty itself can
also explicitly provide that the award shall be
final and binding, and that disputes under the IIA
be deemed to have arisen out of "commercial"
relationships, for purposes of enforcement under
the New York Convention on the Recognition
and Enforcement of Arbitral Awards. Many
treaties also oblige each contracting party to
provide for the enforcement of the award in its
own territory in accordance with its national
legislation. The latter will govern matters such as
the form in which the petition for enforcement
must be presented, how process should be served
on the judgment debtor and similar issues.
Another way to ensure enforcement is to
require either that arbitrations be seated in a State
party to the New York Convention, or that the
arbitration occurs under the ICSID Convention.
Awards rendered in States that are party to the
New York Convention are enforceable in any
other State party to that Convention, subject to
the grounds for challenging enforcement listed
therein. Awards rendered under the ICSID
Convention
enforceable in
any ICSID
are
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