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Set-aside and annulment compared

Last checked 24 October 2026 · 10 sources

Short answer

Setting aside is an application to a national court at the seat of arbitration to cancel an award 1. ICSID annulment is a request to an ad hoc committee inside the ICSID system, not to a national court 2,3. Both are narrow. Neither is an appeal on the merits. Time limits differ: three months under the Model Law 1, 28 days in England 6, three months for notice in the United States 8 and 120 days at ICSID 2.
Model Law time limit
Three months from receipt of the award 1
England and Wales time limit
28 days from the applicable date 6
United States notice period
Three months after the award is filed or delivered 8
ICSID annulment time limit
120 days after the award is rendered 2
ICSID awards annulled to 30 June 2026
28 in part or in full, out of 543 Convention awards 10

Two different routes

Set-aside belongs to the law of the seat. Article 34 of the Model Law says recourse to a court against an award may be made only by an application for setting aside 1. The court at the seat decides it.

Annulment belongs to the ICSID Convention. An ICSID award is not subject to any appeal or other remedy except those in the Convention 2. ICSID states that, unlike other international arbitration awards, ICSID Convention awards cannot be challenged in national courts 3. Annulment is decided by an ad hoc committee of three appointed by the Chairman of the Administrative Council 2.

Grounds compared

Ground typeModel Law set-aside (Art. 34)ICSID annulment (Art. 52)
Agreement or capacityParty incapacity or invalid agreement 1Not a listed ground 2
ProcessNo proper notice or unable to present its case 1Serious departure from a fundamental rule of procedure 2
TribunalComposition or procedure not as agreed 1Tribunal not properly constituted 2
ScopeAward beyond the submission to arbitration 1Tribunal manifestly exceeded its powers 2
IntegrityNot a separate ground, public policy is listed 1Corruption of a tribunal member 2
ReasonsNot a listed ground 1Failure to state reasons 2
State interestsNon-arbitrable subject matter or public policy of the seat 1Not a listed ground 2

National examples

In England and Wales, the Arbitration Act 1996 gives three routes. Section 67 covers challenges to the tribunal's substantive jurisdiction 4. Section 68 covers serious irregularity that has caused or will cause substantial injustice to the applicant 5. The court may remit the award to the tribunal, set it aside or declare it of no effect, and shall not set it aside where remitting would be appropriate 5.

The Arbitration Act 2025 added new subsections to section 67 from 1 August 2025 4. Rules of court may now provide that, where the applicant took part and the tribunal already ruled on the objection, new grounds and new evidence may not be raised and evidence heard by the tribunal must not be re-heard, subject to the interests of justice 4. Any challenge must be brought within 28 days, and available arbitral review and correction must be exhausted first 6.

In the United States, a court may vacate an award procured by corruption, fraud or undue means, for evident partiality or corruption of the arbitrators, for misconduct such as refusing to hear pertinent evidence, or where the arbitrators exceeded their powers 7. Notice of a motion to vacate must be served within three months after the award is filed or delivered 8.

What happens after success

Under Article V(1)(e) of the New York Convention, a court elsewhere may refuse enforcement of an award that has been set aside or suspended by a competent authority of the country where it was made 9. A Model Law court may, at a party's request, suspend the set-aside case to let the tribunal resume and remove the grounds 1.

After an ICSID annulment, either party may ask for the dispute to go to a new tribunal 2. A committee may annul the award in whole or in part 2. ICSID reports 28 awards annulled to 30 June 2026, of which 20 in part and 8 in full 10.

Terms that are easy to confuse

  • Set-aside: a court at the seat cancels the award in whole or in part 1.
  • Annulment: an ICSID ad hoc committee cancels an ICSID award in whole or in part 2.
  • Remission: an English court sends the award back to the tribunal for reconsideration 5.
  • Vacatur: the United States term for a court order vacating an award 7.
  • Refusal of enforcement: a court in another country declines to enforce the award there, on a New York Convention ground 9.

Common questions

Is setting aside an award the same as an appeal?

No. The Model Law allows only set-aside on listed grounds 1. ICSID annulment does not review the merits 3.

Can a national court annul an ICSID award?

No. ICSID states its Convention awards cannot be challenged in national courts 3.

How long do I have to challenge an award in England?

28 days from the applicable date under section 70(3) 6.

Can a set-aside award still be enforced abroad?

A court may refuse it under Article V(1)(e) of the New York Convention 9.

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Sources

  1. UNCITRAL: UNCITRAL Model Law on International Commercial Arbitration 1985, With amendments as adopted in 2006 (2008)
  2. ICSID: Convention, Regulations and Rules, ICSID/15/Rev. 3 (July 2022)
  3. ICSID: ICSID Publishes Updated Background Paper on Annulment (11 March 2024)
  4. legislation.gov.uk: Arbitration Act 1996, section 67
  5. legislation.gov.uk: Arbitration Act 1996, section 68
  6. legislation.gov.uk: Arbitration Act 1996, section 70
  7. GovInfo: United States Code, 2023 edition, 9 U.S.C. 10, Same, vacation, grounds, rehearing
  8. GovInfo: United States Code, 2023 edition, 9 U.S.C. 12, Notice of motions to vacate or modify, service, stay of proceedings
  9. United Nations Treaty Collection: Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York on 10 June 1958, certified true copy
  10. ICSID: The ICSID Caseload, Statistics, Issue 2026-2

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