4. Unless otherwise agreed between the Parties, a Court of Arbitration shall consist of seven arbitrators appointed as follows :
(a) Two arbitrators to be appointed by each Party in accordance with Paragraph 6 ; and
(b) Three arbitrators (hereinafter sometimes called the umpires) to be appointed in accordance with Paragraph 7, one from each of the following categories :
(i) Persons qualified by status and reputation to be Chairman of the Court of Arbitration who may, but need not, be engineers or lawyers.
(ii) Highly qualified engineers.
(iii) Persons well versed in international law.
The Chairman of the Court shall be a person from category (b) (i) above.
5. The Parties shall endeavour to nominate and maintain a Standing Panel of umpires (hereinafter called the Panel) in the following manner :
(a) The Panel shall consist of four persons in each of the three categories specified in Paragraph 4(b) .
(b) The Panel will be selected, as soon as possible after the Effective Date, by agreement between the Parties
and with the consent of the persons whose names are included in the Panel .
(c) A person may at any time be retired from the Panel at the request of either Party : Provided however that he may not be so retired
(i) during the period after arbitration proceedings have been instituted under Paragraph 2(b) and before the process described i n
Paragraph 7(a) has been completed ; or
(ii) during the period after he has been appointed to a Court and before the proceedings are completed.
(d) If a member of the Panel should die, resign or be retired, his successor shall be selected by agreement between the Parties .
The arbitrators referred to in Paragraph 4(a) shall be appointed as follows :
The Party instituting the proceeding shall appoint two arbitrators at the time it makes a request to the other Party under Paragraph 2(b) . Within 30 days of the receipt of this request, the other Party shall notify the names of the arbitrators appointed by it .
7. The umpires shall be appointed as follows :
(a) If a Panel has been nominated in accordance with the provisions of Paragraph 5, each umpire shall be selected as follows from the Panel, from his appropriate category, provided that the category has, at that time, at least three names on the Panel :
The Parties shall endeavour to agree to place the names of the persons in each category in the order in which they shall be invited to serve on the Court. If such agreement cannot be reached within 30 days of the date on which the proceeding is instituted, the Parties shall promptly establish such an order by drawing lots . If, in any category , the person whose name is placed first in the order so established, on receipt of an invitation to serve on the Court, declines to do so, the person whose name is next on the list shall be invited . The process shall be repeated until the invitation is accepted or all names in the category are exhausted.
(b) If a Panel has not been nominated in accordance with Paragraph 5, or if there should be less than three names on the Panel in any category or if n o person in a category accepts the invitation referred to in Paragraph 7(a), the umpires, or the remaining umpires or umpire, as the case may be, shall be appointed as follows :
(i) By agreement between the Parties .
(ii) Should the Parties be unable to agree on the selection of any or all of the three umpires, they shall agree on one or more persons to help them in making the necessary selection by agreement ; but if one or more umpires remain to be appointed 60 days after the date on which the proceeding is instituted,or 30 days after the completion of the process described in sub-paragraph (a) above, as the case may be, then the Parties shall determine by lot for each umpire remaining to be appointed, a person from the appropriate list set out in the Appendix to this Annexure, who shall then be requested to make the necessary selection.
(iii) A national of India or Pakistan, or a person who is, or has been, employed or retained by either of the Parties shall be disqualified
from selection under sub-paragraph (ii) above :
Provided that (1) the person making the selection shall be entitled to rely on a declaration from the appointee, before his selection, that he is not disqualified on any of the above grounds ; and
(2) the Parties may by agreement waive any or all of the above disqualifications in the case of any individual appointee .
(iv) The lists in the Appendix to this Annexure may, from time to time, be modified or enlarged by agreement between the Parties .
8. In selecting umpires pursuant to Paragraph 7, the Chairman shall be selected first, unless the Parties otherwise agree.
9. Should either Party fail to participate in the drawing of lots as provided in Paragraphs 7 and 10, the other Party may request the President of the Bank to nominate a person to draw the lots, and the person so nominated shall do so after giving due notice to the Parties and inviting them to be represented at the drawing of the lots .
10. In the case of death, retirement or disability from any cause of one of the arbitrators or umpires his place shall be filled as follows :
(a) In the case of one of the arbitrators appointed under Paragraph 6, his place shall be filled by the Party which appointed him. The Court shall, on request , suspend the proceedings but for not longer than 1 5 days pending such replacement .
(b) In the case of an umpire, a new appointment shall be made by agreement between the Parties or, failing such agreement, by a person determined by lo t from the appropriate list set out in the Appendix to this Annexure, who shall then be requested t o make the necessary selection subject to the provisions of Paragraph 7(b) (iii) . Unless the Parties otherwise agree, the Court shall suspend the proceedings pending such replacement.
11. As soon as the three umpires have accepted appointment, they together with such arbitrators as have been appointed by the two Parties under Paragraph 6 shall for m the Court of Arbitration. Unless the Parties otherwise agree, the Court shall be competent to transact business only when all the three umpires and at least two arbitrators are present.
12. Each Party shall be represented before the Court by an Agent and may have the assistance of Counsel .
13. Within 15 days of the date of institution of a proceeding, each Party shall place sufficient funds at the disposal of its Commissioner to meet in equal shares the initial expenses of the umpires to enable them to attend the first meeting of the Court . If either Party should fail to do so, the other Party may initially meet the whole o f such expenses.
14. The Court of Arbitration shall convene, for its firs t meeting, on such date and at such place as shall be fixed by the Chairman.
15. At its first meeting the Court shall
(a) establish its secretariat and appoint a Treasurer ;
(b) make an estimate of the likely expenses of the Court and call upon each Party to pay to the Treasurer half of the expenses so estimated : Provided that ,
if either Party should fail to make such payment , the other Party may initially pay the whole of the estimated expenses ;
(c) specify the issues in dispute ;
(d) lay down a programme for submission by each side of legal pleadings and rejoinders ; and
(e) determine the time and place of reconvening the Court.
Unless special circumstances arise, the Court shall not reconvene until the pleadings and rejoinders have bee n closed. During the intervening period, at the request of either Party, the Chairman of the Court may, for sufficient reason, make changes in the arrangements made under (d) and (e) above .
16. Subject to the provisions of this Treaty and except as the Parties may otherwise agree, the Court shall decide all questions relating to its competence and shall determine its procedure, including the time within which each Part y must present and conclude its arguments . All such decisions of the Court shall be by a majority of those present and voting. Each arbitrator, including the Chairman, shall have one vote. In the event of an equality of votes, the Chairman shall have a casting vote .
17. The proceedings of the Court shall be in English .
18. Two or more certified copies of every document produced before the Court by one Party shall be communicate d by the Court to the other Party ; the Court shall not take cognizance of any document or paper or fact presented by a Party unless so communicated.
19. The Chairman of the Court shall control the discussions . The discussions shall not be open to the public unless it is so decided by the Court with the consent of the Parties. The discussions shall be recorded in minutes drawn up by the Secretaries appointed by the Chairman . These minutes shall be signed by the Chairman and shall alone have an authentic character .
20. The Court shall have the right to require from the Agents of the Parties the production of all papers and other evidence it considers necessary and to demand all necessary explanations . In case of refusal, the Court shall take formal note of it .
21. The members of the Court shall be entitled to put questions to the Agents and Counsel of the Parties and to demand explanations from them on doubtful points. Neither the questions put nor the remarks made by the members of the Court during the discussions shall be regarded as an expression of an opinion of the Court or any of its members.
22. When the Agents and Counsel of the Parties have , within the time allotted by the Court, submitted all explanations and evidence in support of their case, the Court shall pronounce the discussions closed . The Court may, however, at its discretion re-open the discussions at any time before making its Award . The deliberations of the Court shall be in private and shall remain secret.
23. The Court shall render its Award, in writing, on the issues in dispute and on such relief, including financial compensation, as may have been claimed. The Award shall be accompanied by a statement of reasons. An Award signed by four or more members of the Court shall constitute the Award of the Court . A signed counterpart of the Award shall be delivered by the Court to each Party . Any such Award rendered in accordance with the provisions of this Annexure in regard to a particular dispute shall b e final and binding upon the Parties with respect to that dispute .
24. The salaries and allowances of the arbitrators appointed pursuant to Paragraph 6 shall be determine d and, in the first instance, borne by their Governments ; those of the umpires shall be agreed upon with them by the Parties or by the persons appointing them, and (subject to Paragraph 13) shall be paid, in the first instance , by the Treasurer . The salaries and allowances of the secretariat
of the Court shall be determined by the Court and paid, in the first instance, by the Treasurer .
25. Each Government agrees to accord to the members and officials of the Court of Arbitration and to the Agents and Counsel appearing before the Court the same privileges and immunities as are accorded to representatives of member states to the principal and subsidiary organs of the United Nations under Sections 11, 12 and 13 of Article IV of the Convention on the Privileges and Immunities of the United Nations (dated 13th February 1946 ) during the periods specified in these Sections . The Chairman of the Court, with the approval of the Court, has the right and the duty to waive the immunity of any official of the Court in any case where the immunity would impede the course of justice and can be waived without prejudice to the interests of the Court. The Government appointing any of the aforementioned Agents and Counsel has the right and the duty to waive the immunity of any
of its said appointees in any case where in its opinion the immunity would impede the course of justice and can be waived without prejudice to the effective performance of the functions of the said appointees . The immunities and privileges provided for in this paragraph shall not be applicable as between an Agent or Counsel appearing before the Court and the Government which has appointed him.
26. In its Award, the Court shall also award the costs of the proceedings, including those initially borne by the Parties and those paid by the Treasurer .
27. At the request of either Party, made within three months of the date of the Award, the Court shall reassemble to clarify or interpret its Award . Pending such clarification or interpretation the Court may, at the request of either Party and if in the opinion of the Court circumstances so require, grant a stay of execution of its Award . After furnishing this clarification or interpretation, or if
no request for such clarification or interpretation is mad e within three months of the date of the Award, the Court shall be deemed to have been dissolved .
28. Either Party may request the Court at its first meeting to lay down, pending its Award, such interim measures as, in the opinion of that Party, are necessary to safeguard its interests under the Treaty with respect to the matter in dispute, or to avoid prejudice to the final solution or aggravation or extension of the dispute .
The Court shall, thereupon, after having afforded an adequate hearing to each Party, decide, by a majority consisting of at least four members of the Court, whether any interim measures are necessary for the reasons hereinbefore stated and, if so, shall specify such measures : Provided that
(a) the Court shall lay down such interim measures only for such specified period as, in its opinion, will be necessary to render the Award : this period may, if necessary, be extended unless the delay in rendering the Award is due to any delay on the part of the Party which requested the interim measures in supplying such information as may be required by the other Party or by the Court in connection with the dispute ; and
(b) the specification of such interim measures shall not be construed as an indication of any view of the Court on the merits of the dispute.
29. Except as the Parties may otherwise agree, the law to be applied by the Court shall be this Treaty and, whenever necessary for its interpretation or application, but only to the extent necessary for that purpose, the following in the order in which they are listed :
(a) International conventions establishing rules which are expressly recognized by the Parties .
(b) Customary international law.
APPENDIX TO ANNEXURE G
(Paragraph 7(b) )
List I
for selection of Chairman
(i) The Secretary-General of the United Nations (Ban Ki Moon)
(ii) The President of the International Bank for Reconstruction and Development ( World Bank) (Robert B. Zoellick)
List II
for selection of Engineer Member
(i) The President of Massachusetts Institute of Technology, Cambridge, Mass., U .S.A. (Susan Hockfield, "President and Professor of Neuroscience ,She is currently a corporate director of GE Industrial)
(ii) The Rector of the Imperial College of Science and Technology, London, England (Sir Keith O'Nions)
List III
for selection of Legal Member
(i) The Chief Justice of the United States (Chief Justice John Roberts)
(ii) The Lord Chief Justice of England (Lord Igor Judge)