ENFORCEMENT OF INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DISPUTE (ICSID) AWARD: THE PLEA OF SOVEREIGN IMMUNITY

Abstract

The outcome of every arbitration process is an award. There are different kinds of award inclusive of ICSID Award. ICSID award has a peculiar and unique method of enforcement and  execution  so  as  to  prove  more  effective  dispute  settlement  process. Theessence  of arbitration  award  is  for  the  winning  party  to  enjoy  the  fruit  of  his  or  her  victory. Consequently, it is pertinent to provide comfortable environment for investors by assuring effective   remedies   against   host-states.   As   set   forth   by   the   ICSID   convention,   the enforcement  of  ICSID  awards  is  obligatory  for  all  signatory  states  and  the  execution  is governed  by  local  law.  This  brings  to  the  fore  whether  states  can  invoke  their  sovereign immunity  laws  against  the  ICSID  arbitral  awards  and  how  sovereign  immunity  plea affects the enforcement process. This work argues that sovereign immunity plea does not disrupt  the  binding  nature  of  enforcement  rules.  However  the  enforcement  rules  of  the convention  are  analyzed  in  the  essay.  Also  this  work  examines  the  effects  of  sovereign immunity  plea  an  execution  phase  and  the  remedies  which  are  available  to  investors  bydiscussing and studying the relevant articles of the convention in chapter in, section 6 and some cases where sovereign immunity plea were invoked by host state in execution phase. The  paper  therefore  recommends  that  an  investor  can  include  the  exemption of  the hardship of local or national law at the point of making the arbitration agreement.