Originally from: Annulment of ICSID Awards

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One of the specific features of ICSID arbitration and reasons of its success is its own annulment-regime. Indeed, ICSID awards can only be annulled for a limited number of grounds by a specific ad hoc committee of three persons, nominated by the Chairman of the Centre. That is what Article 52 of the Washington Convention provides for. The general rule of commercial arbitration, i.e., that the domestic court of the seat of arbitration has jurisdiction to annul the award on the grounds provided for by the arbitration law of the seat, thus does not apply to ICSID arbitration.

In this way, ICSID awards are immune from challenges before investor-unfriendly courts in the host State and from the negative impact of its laws. ICSID awards thus are liberated from the pitfalls of national legal systems in a way commercial arbitration can only dream of.