On Arbitration

Law of Georgia

On Arbitration

Article 1. Scope of Application of the Law🔗

1. This Law establishes the rules for the creation of arbitration in Georgia, arbitration proceedings, arbitral awards, as well as the recognition and enforcement of arbitral awards rendered outside Georgia.

2. Arbitration is authorized to consider:

a) property disputes of a private nature based on the equality of persons, which the parties may settle between themselves;

b) disputes related to a public-private partnership contract provided for by the Law of Georgia “On Public-Private Partnership”.

Law of Georgia of 4 May 2018 No. 2276 – website, 24.05.2018.

Article 2. Definition of Terms and Application of the Law🔗

1. The terms used in this Law shall have the following meaning for the purposes of this Law:

a) court – for Articles 11, 13, 14 and 35 of this Law – the district (city) court in whose territorial jurisdiction the arbitration hearing was, is or is to be conducted; for Articles 16, 21, 22, 23, 42 and 43 – the courts of appeal; for Articles 44 and 45 – the courts of appeal and the Supreme Court of Georgia;

b) electronic communication – any communication transmitted by the parties in the form of an information message. An information message is information prepared, sent, received or stored by electronic, magnetic, optical or similar means, including by electronic data transmission, e-mail, telegram, telex or telefax.

2. The parties may agree on the rules of arbitration proceedings. In this case, the agreement of the parties shall include the rules of arbitration proceedings to which the parties refer in the arbitration agreement. At the same time, the agreement of the parties on a specific arbitration institution shall include an agreement on the rules of the same arbitration institution.

2¹. (Deleted – 18.03.2015, No. 3218).

3. If any provision of this Law relates to an arbitration claim, the said provision shall also apply to an arbitration response, except for subparagraph “a” of paragraph 2 of Article 40 of this Law.

Law of Georgia of 15 December 2010 No. 4046 – LHG I, No. 76, 27.12.2010, Art. 492

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 3. Equality of Parties to Arbitration Proceedings🔗

The parties to arbitration proceedings shall enjoy equal rights. Each party shall be given a full opportunity to present its position.

Article 4. Transfer of the Right to Make a Decision to a Third Party🔗

The parties shall have the right to transfer to a third party the right to make a decision conferred on them by this Law.

Article 5. Succession in arbitration proceedings🔗

1. In the event of succession in a legal relationship, the successor shall also become a party to the arbitration agreement, unless otherwise provided by the agreement of the parties.

2. The death or liquidation of one of the parties shall not entail the termination of the arbitration agreement or the replacement of an already appointed arbitrator, unless otherwise provided by the agreement of the parties.

Article 6. Independence of arbitration and cases of court intervention🔗

1. Arbitration shall be independent in its activity and shall be guided by the arbitration procedure determined by the parties or by the arbitration, in compliance with the requirements of this Law.

2. Any form of court intervention in the legal relations provided for by this Law shall be inadmissible, except in cases where this is directly provided for by this Law.

Article 7. Time limits🔗

1. The running of a time limit calculated in days established by this Law shall begin on the day following the occurrence of the event by which its commencement is determined, unless otherwise provided by the agreement of the parties.

2. If the last day of a time limit coincides with a public holiday or a day of rest, the day of expiry of the time limit shall be deemed the first following working day.

Article 8. Concept and form of arbitration agreement🔗

1. An arbitration agreement is an agreement by which the parties agree to submit to arbitration for consideration all or some of the disputes which have arisen or may arise between them out of a particular contractual or other legal relationship.

2. An arbitration agreement may be concluded in the form of an arbitration clause in a contract or in the form of a separate agreement.

3. An arbitration agreement shall be concluded in written form.

4. An arbitration agreement shall be deemed to have been concluded in written form if its content is recorded in any form, irrespective of the form in which the arbitration agreement or the contract was concluded.

5. The requirement to conclude an arbitration agreement in written form shall be satisfied by an electronic communication if the information contained in the communication is accessible for its subsequent use.

6. An arbitration agreement shall be deemed to have been concluded in written form if it is effected by an exchange of a statement of claim in arbitration and a statement of defence in arbitration, where one party asserts and the other party does not deny the existence of the arbitration agreement.

7. A reference in a contract to any document containing an arbitration clause shall constitute an arbitration agreement in written form if such reference makes the said clause part of the contract.

8. If one of the parties to the contract or the arbitration agreement is a natural person or an administrative body, the arbitration agreement shall be concluded in writing, by means of a document signed by the parties. Paragraphs 4–6 of this Article shall not apply to such an agreement.

9. (Removed - 18.03.2015, No. 3218).

Law of Georgia of 15 December 2010 No. 4046 - LHG I, No. 76, 27.12.2010, Art. 492

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 9. Arbitration agreement and filing a claim with a court on the merits of a dispute🔗

1. The court with which a claim is filed on the merits of a dispute that is the subject of an arbitration agreement shall, on the basis of an application by a party, which must be made before the expiry of the time limit for submitting a response to the claim, terminate the proceedings and refer the parties to arbitration, except where the court establishes that the arbitration agreement is void, invalid, or incapable of being performed.

2. (Deleted - 18.03.2015, No. 3218).

3. From the filing with the court of the claim referred to in paragraph 1 of this article until the resolution of the issue of jurisdiction, arbitration proceedings may be commenced, continued, and an arbitral award may be rendered.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 10. Number of Arbitrators🔗

1. The arbitral tribunal shall consist of one or more arbitrators.

2. The number of arbitrators and the procedure for their appointment shall be determined by the parties. The parties shall appoint an equal number of arbitrators, unless otherwise provided by the agreement of the parties.

3. If the number of arbitrators is determined by the arbitration agreement as an even number, then the arbitrators already appointed shall, within 10 days of their appointment, appoint one more arbitrator, unless otherwise provided by the agreement of the parties.

4. If the number of arbitrators is not determined by the agreement of the parties, then the arbitral tribunal shall be composed of three arbitrators.

Article 11. Appointment of Arbitrators🔗

1. It is inadmissible to appoint a person as an arbitrator without his or her consent. A person shall declare consent to arbitration in writing.

2. The procedure for the appointment of the arbitrator (arbitrators) and the chairman of the arbitration shall be determined by agreement of the parties.

3. In the absence of an agreement of the parties on the appointment of the arbitrator (arbitrators) and the chairman of the arbitration, or where the agreed procedure cannot be implemented:

a) in the case of an arbitration composed of three arbitrators, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall appoint the chairman of the arbitration. If one of the parties fails to appoint an arbitrator within 30 days from the receipt of the other party's request, or if the two arbitrators fail, within 30 days from their appointment, to agree on the appointment of the third arbitrator, the arbitrator shall, on the basis of a request of one of the parties, be appointed by the court within 30 days from the acceptance of the court application for proceedings;

b) in the case of an arbitration composed of one arbitrator, if the parties fail to agree on the appointment of the arbitrator, the arbitrator shall, on the basis of a request of one of the parties, be appointed by the court within 30 days from the acceptance of the court application for proceedings.

4. The court judgment provided for by paragraph 3 of this Article shall be final and shall not be subject to appeal.

5. A person who is to be appointed as an arbitrator shall, before commencing the performance of the duties of an arbitrator, submit to the parties to the arbitration proceedings and to the arbitration, at their request, written information on his or her education and experience of working as an arbitrator (if any).

6. When appointing an arbitrator, the court or another institution that appoints the arbitrator shall take into account the qualification requirements agreed upon by the parties in order to ensure the appointment of an independent and impartial arbitrator.

7. It is inadmissible to prohibit a person from being appointed as an arbitrator, except where he or she is:

a) a person with limited capacity or a recipient of support, unless otherwise determined by a court judgment;

b) a state servant, a state-political official, a political official or a public servant;

c) convicted of a crime and whose criminal record has not been removed or expunged;

d) or has been a mediator in the same case or in another case substantially related to this case.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Law of Georgia of 20 March 2015 No. 3360 – website, 31.03.2015.

Law of Georgia of 27 October 2015 No. 4351 – website, 11.11.2015.

Law of Georgia of 21 December 2016 No. 128 – website, 28.12.2016.

Law of Georgia of 18 September 2019 No. 4958 – website, 27.09.2019.

Article 12. Grounds for challenge of an arbitrator🔗

1. A party has the right to request the challenge of an arbitrator if the arbitrator does not meet the qualification specified by the agreement of the parties and/or there are circumstances that may give rise to justified doubts as to the arbitrator's independence and impartiality.

2. A party has the right to request the challenge of an arbitrator appointed by it only on the grounds of circumstances that became known to it after the appointment of the arbitrator.

3. A person who is to be appointed as an arbitrator, or an already appointed arbitrator, shall, from his/her appointment and throughout the entire duration of the arbitral proceedings, immediately notify the parties and the arbitral tribunal of circumstances that make his/her independence and impartiality questionable.

Article 13. Procedure for challenge of an arbitrator🔗

1. The parties may, subject to compliance with the requirements of this article, agree on the procedure for challenge of an arbitrator.

2. In the absence of an agreement of the parties, a party that intends to challenge an arbitrator shall submit to the arbitral tribunal a written application for challenge of the arbitrator within 15 days from the day when it became aware of the appointment of the relevant arbitrator or of any circumstance provided for by this law that is a ground for challenge of the arbitrator. The application for challenge of the arbitrator shall indicate the ground and reasons for challenge of the arbitrator. If the arbitrator whose challenge is being considered does not declare self-recusal, or if the other party does not agree to his/her challenge within 30 days from submission of the application for challenge of the arbitrator, the arbitral tribunal shall decide the issue of challenge of the arbitrator within 30 days after expiry of this period.

2¹. If the arbitral tribunal has not satisfied the party's application for challenge of the arbitrator, the party challenging the arbitrator may, within 30 days from delivery of the decision of the arbitral tribunal refusing the challenge of the arbitrator, apply to the court requesting challenge of the arbitrator.

3. In the case of an arbitral tribunal consisting of one arbitrator, a party has the right, within 30 days from the appointment of the arbitrator or from the day when it became aware of any circumstance provided for by this law that is a ground for challenge of the arbitrator, to apply to the court requesting challenge of the arbitrator.

4. The court shall issue a judgment on the issues provided for by paragraphs 2¹ and 3 of this article within 14 days from acceptance of the application for proceedings. This judgment is final and not subject to appeal. In such a case, the arbitrator has the right to declare self-recusal even before the court renders a judgment. Before the court renders a judgment on the challenge of the arbitrator, the arbitral tribunal may continue the arbitral proceedings with the participation of the arbitrator whose challenge is requested by the party, and render an arbitral award.

5. If grounds for challenge exist, the arbitrator shall declare self-recusal.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 14. Termination of the Arbitrator's Authority🔗

1. A party shall not have the right to unilaterally replace the arbitrator appointed by it.

2. In the event of impossibility to perform duties or inactivity for any other reason, the arbitrator's authority may be terminated on the basis of his/her own request or by agreement of the parties. In these cases, if no agreement is reached, either party may, within 30 days from the submission of the request for termination of the arbitrator's authority, apply to the court with a request for termination of the arbitrator's authority. The court shall issue a judgment on this matter within 14 days from the acceptance of the application for proceedings. This judgment is final and shall not be appealed.

3. Refusal by the arbitrator to perform his/her duties or the party's consent to the termination of the arbitrator's authority does not imply the existence of the grounds provided for by paragraph 2 of this Article or the existence or recognition of the grounds for challenge provided for by this Law.

Article 15. Appointment of a New Arbitrator🔗

In the event of termination of the arbitrator's authority, a new arbitrator shall be appointed in compliance with the rules that were applied when the previous arbitrator was appointed.

Article 16. Competence of Arbitration🔗

1. The arbitration is entitled to adopt a ruling on its own competence, including determination of the existence or validity of the arbitration agreement. For this purpose, an arbitration clause which forms part of a contract shall be treated as an arbitration agreement independent of the other terms of the contract. A finding that the contract is invalid shall not entail invalidity of the arbitration clause.

2. A statement that the arbitration has no competence may be made before submission of the arbitration statement of defence. Appointment of an arbitrator by a party or participation in the appointment of an arbitrator does not deprive that party of the right to make such a statement.

3. A statement on the arbitration exceeding its own competence shall be made within 7 days after the party becomes aware of the relevant circumstance.

4. A statement on the competence of the arbitration may also be made after expiry of the time limit determined by paragraphs 2 and 3 of this Article, if the arbitration considers such expiry of the time limit excusable.

5. The arbitration is entitled, in relation to the statement provided for by paragraphs 2 and 3 of this Article, to adopt a decision before rendering the final arbitral award or together with the final arbitral award. If the arbitration, before rendering the final arbitral award, determines that it has the relevant competence, any party has the right, within 30 days after receipt of notification of such decision of the arbitration, to appeal that decision to a court. The court shall issue a reasoned ruling on the competence of the arbitration within 14 days after acceptance of the statement for proceedings. This ruling is final and shall not be subject to appeal. Until the court decides the said issue, the arbitration proceedings may be commenced, continued and an arbitral award may be rendered.

6. In the event of agreement of the parties, the arbitration shall adopt a decision on its own competence in accordance with the agreement of the parties, before rendering the final arbitral award or together with the final arbitral award.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 17. Application by the arbitral tribunal of measures for securing an arbitration claim🔗

1. Before the commencement of the arbitration proceedings or at any stage of the proceedings, prior to the rendering of a final arbitral award, a party may apply by motion to the arbitral tribunal for the application of measures for securing an arbitration claim, unless this contradicts the arbitration agreement.

2. The arbitral tribunal is entitled, on the basis of a party's application, by a written arbitral award, within a reasonable time, to order the party:

a) to maintain or restore the status quo until the rendering of the final arbitral award;

b) to take such measures as are related to the prevention of harm to the other party or to the arbitration proceedings;

c) to implement measures to preserve the assets by which a subsequent arbitral award will be enforced;

d) to preserve and maintain evidence that may be related to the arbitration dispute and its resolution.

Law of Georgia No. 3218 of 18 March 2015 – website, 26.03.2015.

Article 18. Conditions for the application of measures for securing an arbitration claim by the arbitral tribunal🔗

1. A party that applies to the arbitral tribunal by motion for the application of the securing measures provided for by subparagraphs „a“–„c“ of paragraph 2 of Article 17 of this Law shall substantiate the existence of the following circumstances:

a) the non-application of the measures for securing the arbitration claim may cause such damage as cannot be avoided by imposing on the other party the obligation to compensate the damage;

b) the damage caused by the non-application of the measures for securing the arbitration claim significantly exceeds the damage that may be caused to the party against which the measures for securing the arbitration claim are directed, in the event of the application of these measures;

c) there is a reasonable assumption that its claim will be satisfied. The said assumption does not affect the rendering of a subsequent decision by the arbitral tribunal.

2. With respect to the securing measure provided for by subparagraph „d“ of paragraph 2 of Article 17 of this Law, the requirements of subparagraphs „a“–„c“ of paragraph 1 of this Article apply only to the extent that the arbitral tribunal considers this appropriate.

3. The arbitral tribunal is entitled to require the party that moves for the application of measures for securing the arbitration claim to provide appropriate security in connection with the said securing measures.

4. The party that moves for the application of measures for securing the arbitration claim shall be liable for any costs and damage caused by the application of the measures for securing the arbitration claim requested by that party, if the arbitral tribunal determines that in the said circumstances the given measures for securing the arbitration claim should not have been applied. The arbitral tribunal is entitled to impose on the party compensation of costs and damage at any stage of the arbitration proceedings.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 19. Modification, suspension and revocation of measures for securing an arbitration claim by the arbitral tribunal🔗

The arbitral tribunal is entitled, if it considers this necessary, to modify, suspend or revoke the measures for securing the arbitration claim applied by it, upon the request of one of the parties or, in exceptional cases, on its own initiative, after prior notification to the parties.

Article 20. Obligation to disclose information🔗

The arbitral tribunal is entitled to require the parties to disclose immediately the information relating to material changes in the circumstances on the basis of which the measures for securing the arbitration claim were requested or applied.

Article 21. Recognition and enforcement of interim measures of protection in respect of an arbitration claim applied by an arbitral tribunal🔗

1. Interim measures of protection in respect of an arbitration claim applied by an arbitral tribunal shall have binding force and shall be enforced by way of an application to a court, regardless of the country in which the decision on the application of the said interim measures of protection in respect of the arbitration claim was rendered, subject to the provisions of this Article and Article 22 of this Law. If, in accordance with the legislation of Georgia, the enforcement of interim measures of protection in respect of an arbitration claim does not require an application to a court, the arbitral tribunal is entitled to establish a different procedure for their enforcement.

2. A party that applies to a court with an application for the recognition and enforcement of interim measures of protection in respect of an arbitration claim applied by an arbitral tribunal, or whose application has been granted by the court, shall be obliged to immediately notify the court of any information relating to the suspension, modification or setting aside of the interim measures of protection in respect of the arbitration claim applied by the arbitral tribunal.

3. The court is entitled to require a party that applies for the recognition and enforcement of interim measures of protection in respect of an arbitration claim applied by an arbitral tribunal to provide the security provided for by paragraph 3 of Article 18 of this Law.

4. The arbitral award provided for by paragraph 2 of Article 17 of this Law shall be submitted to the court for its recognition and enforcement in accordance with the procedure provided for by paragraph 2 of Article 44 of this Law.

Law of Georgia of 18 March 2015 No. 3218 – website, 26 March 2015.

Article 22. Grounds for refusal by a court to recognize and enforce interim measures of protection of an arbitration claim🔗

1. A party may be refused recognition and enforcement of interim measures of protection of an arbitration claim only if:

a) the party against whom the said interim measures of protection are directed applies to the court and proves that:

a.a) the refusal to recognize and enforce the interim measures of protection of an arbitration claim is based on the circumstances set out in the first paragraph of Article 45 of this Law;

a.b) the arbitral award concerning the provision of the relevant security in connection with the interim measures of protection has not been complied with;

a.c) the interim measures of protection of an arbitration claim have been suspended or set aside by the arbitral tribunal, or by the court of the country where the arbitration proceedings are being conducted, or by the court of the country under whose law the interim measures of protection were applied;

b) the court considers that:

b.a) the enforcement of the interim measure of protection of the claim exceeds the powers of the court, except where the court renders a judgment on the modification of the form of the interim measure of protection, without substantially changing it, to the extent necessary for the enforcement of the said interim measure of protection in the manner prescribed by law;

b.b) the conditions provided for by subparagraphs „b.a“ and „b.b“ of the first paragraph of Article 45 of this Law apply in relation to the recognition and enforcement of interim measures of protection of an arbitration claim.

2. A judgment rendered by a court on any of the grounds provided for by the first paragraph of this Article shall apply only to the recognition and enforcement of interim measures of protection of an arbitration claim.

3. The court that renders a judgment on the recognition and enforcement of interim measures of protection of an arbitration claim shall not, when rendering the judgment, examine the interim measures of protection of an arbitration claim on the merits.

Article 23. Interim measures of protection of an arbitration claim applied by a court🔗

1. A party may apply to the court requesting the application of interim measures of protection of an arbitration claim.

2. In matters of protection of an arbitration claim, irrespective of the place of arbitration, the court shall have the same powers as in matters of protection of a claim in legal proceedings.

3. In connection with the protection of an arbitration claim by a court, the rules established by Chapter XXIII of the Civil Procedure Code of Georgia shall apply, except for subparagraphs „f“ and „i“ of paragraph 2 of Article 198, taking into account the peculiarities of international arbitration proceedings.

Law of Georgia No. 3218 of 18 March 2015 – website, 26.03.2015.

Article 24. Determination of the rules of arbitral proceedings🔗

1. The rules of arbitral proceedings shall be determined by the parties in compliance with the requirements of this Law.

2. If there is no agreement between the parties on the rules of arbitral proceedings, the dispute shall be heard under the rules established by the arbitral tribunal, in compliance with the requirements of this Law.

Article 25. Place of arbitral proceedings🔗

1. The place of arbitral proceedings shall be determined by agreement of the parties. In the absence of an agreement of the parties, the place of arbitral proceedings shall be determined by the arbitral tribunal, taking into account the circumstances of the case and how convenient that place is for the parties.

2. The arbitral tribunal may convene a meeting at any place for holding consultations among the arbitrators, for hearing witnesses, experts or the parties, for examining evidence, unless otherwise provided by agreement of the parties.

Article 26. Commencement of the hearing of an arbitral dispute🔗

The hearing of an arbitral dispute shall commence on the day on which the respondent in arbitration receives the notice of referral of that dispute to arbitration, unless otherwise provided by agreement of the parties.

Article 27. Notice🔗

Unless otherwise provided by this Law or by agreement of the parties, written notice shall be served on the parties in accordance with the rules established by the Civil Procedure Code of Georgia for court notice and summons.

Law of Georgia No. 3218 of 18 March 2015 – website, 26 March 2015.

Article 28. Representation in arbitral proceedings🔗

A party has the right to be represented at any stage of the arbitral proceedings by an attorney or another representative.

Article 29. Language of arbitral proceedings🔗

1. The parties may determine the language (languages) of the arbitral proceedings. In the absence of an agreement of the parties, the language (languages) of the arbitral proceedings shall be determined by the arbitral tribunal with due regard to all relevant circumstances, including the language of the contract. Unless otherwise provided by agreement of the parties, the agreement of the parties or the decision of the arbitral tribunal shall also apply to any written statement of the parties, oral hearing, final arbitral award, order and any other document used in the arbitral proceedings.

2. The arbitral tribunal may order that any documentary evidence be accompanied by a translation into the language (languages) of the arbitral proceedings.

Law of Georgia No. 3218 of 18 March 2015 – website, 26 March 2015.

Article 30. Arbitration claim, arbitration response🔗

1. Within the time limit agreed by the parties or determined by the arbitration, the arbitration claimant shall submit in written form an arbitration claim, in which it shall indicate the names (designations) and addresses (places of location) of the parties, the claim, the circumstances and evidence confirming the said claim, and the list of documents attached to the arbitration claim.

2. The arbitration respondent shall submit a response to the facts and circumstances indicated in the arbitration claim.

3. The provisions of paragraphs 1 and 2 of this Article shall apply where, by agreement of the parties, no other requirements are established in respect of the arbitration claim and the arbitration response, or where no such agreement exists.

4. If the arbitration claimant submits the arbitration claim without observing the form determined by this Article, the arbitration proceedings shall not commence.

5. If the arbitration respondent fails to submit a response to the arbitration claim in accordance with paragraph 2 of this Article, the arbitration shall continue consideration of the case. Failure to submit a response may not be considered as admission of the arbitration claim.

6. The parties may submit, together with the arbitration claim or the response, any document related to the case, or refer to the documents and other evidence which they will submit subsequently.

7. Unless otherwise provided by agreement of the parties, the arbitration claim shall be sent to the other party and to the chairperson of the arbitration, and if the chairperson of the arbitration has not yet been elected — to all arbitrators.

8. Unless otherwise provided by agreement of the parties, during the arbitration proceedings a party may amend the claims of the arbitration claim or the response or submit additional claims, unless the arbitration considers this to be a protraction of the proceedings.

Article 31. Waiver of response🔗

If any requirement of this Law from which the parties may derogate, and/or any requirement of the arbitration agreement has not been complied with, and a party continues to participate in the arbitration proceedings without immediately, and/or, where a time limit is determined by this Law, by agreement of the parties or by the arbitration, within that time limit, submitting in writing its response against such violation, then it shall be deemed to have waived the right to respond.

Article 32. Form of arbitration proceedings🔗

1. If the form of arbitration proceedings is not determined by agreement of the parties, the arbitral tribunal is entitled to conduct an oral hearing of the evidence presented in the case or an examination of the case solely on the basis of documents and other evidence. At the request of either party, the arbitral tribunal shall conduct an oral hearing at any stage of the arbitration proceedings, except where the parties have waived oral hearing.

2. The parties shall be given summons in advance, within a reasonable time, regarding the holding of each session and hearing of the arbitration.

3. Every statement, document or other information submitted to the arbitral tribunal by one of the parties shall be immediately communicated to the other party. All expert reports or other evidence on which the arbitral tribunal may base its decision shall be presented to the parties.

4. Unless otherwise provided by law or by agreement of the parties, all arbitration proceedings shall be closed. A submitted document, evidence, written or oral statement shall not be publicly published or transmitted and used in other court or administrative proceedings.

5. Subject to paragraph 4 of this Article, the arbitrator and any person participating in the arbitration proceedings shall maintain the confidentiality of information received during the arbitration proceedings.

Article 33. Non-appearance of the parties🔗

If one of the parties fails to appear at the examination of the case for an unjustified reason or does not present its position and evidence, the arbitral tribunal may continue the examination of the case and render a decision on the basis of the evidence at its disposal, unless otherwise provided by agreement of the parties.

Article 34. Appointment and challenge of an expert🔗

1. Unless otherwise provided by agreement of the parties, the arbitral tribunal has the right to:

a) appoint one or more experts for the purpose of presenting reports on specific issues determined by the arbitral tribunal;

b) require the parties to submit to the expert the information at their disposal relating to the case, to hand over to the expert for inspection or to give the opportunity to inspect any document or other thing relating to the case.

2. Unless otherwise provided by agreement of the parties, after the expert has presented an oral or written report, the arbitral tribunal, upon the motion of a party or on its own initiative, shall invite the expert to participate in the oral examination of the case for the purpose of giving testimony on the disputed issues. The parties have the right to ask questions to the expert and to invite other experts to give testimony on the disputed issues.

3. The challenge and self-challenge of an expert shall be carried out on the grounds and in the manner determined by this Law for the challenge of an arbitrator.

Article 35. Evidence, Court Assistance in Obtaining Evidence🔗

1. The powers of the arbitral tribunal include the examination of the admissibility of any evidence and the assessment of evidence.

2. Unless otherwise provided by the agreement of the parties, the arbitral tribunal is entitled to:

a) at any stage of the arbitral proceedings, require a party to submit to the other party any document or physical evidence related to the case;

b) summon a witness of any party or, if necessary, request his/her examination before the commencement of the arbitral proceedings and use the witness's testimony during the proceedings;

c) at any stage of the arbitral proceedings, require a party to present any document or physical evidence related to the case.

3. The arbitral tribunal or a party with the consent of the arbitral tribunal may request court assistance in obtaining evidence at any stage of the arbitral proceedings. The said evidence shall be submitted to the party (parties) or to the arbitral tribunal at any stage of the proceedings. The arbitral tribunal is entitled to apply to the court to ensure the attendance of a witness. The rights and obligations of a witness summoned by the court are determined by the Civil Procedure Code of Georgia.

Article 36. Application of Rules of Law in Arbitral Proceedings🔗

1. The arbitral tribunal shall resolve the dispute in accordance with those rules of law chosen by the parties that apply to the merits of the dispute.

2. In the absence of an agreement of the parties, the rules of law determined by the arbitral tribunal shall be applied in the arbitral proceedings.

3. Any reference to the legislation or legal system of any country means the substantive law of that country and not its procedural and conflict-of-laws rules.

4. When rendering an award, the arbitral tribunal shall take into account the terms of the contract and the trade usages and practices applicable to such contract.

Law of Georgia No. 3218 of 18 March 2015 – website, 26 March 2015.

Article 37. Rendering of an Award in the Examination of a Case by an Arbitral Tribunal Composed of Several Arbitrators🔗

1. An arbitral tribunal composed of several arbitrators shall render an award by a simple majority of the votes of the arbitrators, unless otherwise provided by the agreement of the parties.

2. An arbitrator shall not have the right to abstain from voting.

3. Procedural issues related to the rendering of an award may be decided by the chairman of the arbitral tribunal, if he/she has been granted the relevant authority by the parties or all the arbitrators.

Article 38. Settlement of the parties🔗

1. If during the arbitration proceedings the parties settle, the arbitration shall terminate the proceedings. The arbitration is entitled, on the basis of a request of the parties, by an arbitral award to approve the settlement of the parties on the agreed terms.

2. The arbitration shall issue a decision on the termination of the arbitration proceedings within 30 days from the acceptance into proceedings of the statement of the parties on settlement.

3. The arbitral award on settlement shall be issued in compliance with the requirements of Article 39 of this Law. Such an arbitral award has the same legal force as any other arbitral award issued as a result of the consideration of the dispute on the merits.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 39. Arbitral award🔗

1. The arbitral award shall be issued within 180 days from the commencement of the arbitration proceedings, unless otherwise provided by agreement of the parties. If necessary, the said time limit may be extended by the arbitrator by not more than 180 days.

2. The arbitral award is binding on the parties to the arbitration agreement. It shall be issued in writing. It shall be signed by the arbitrator (arbitrators). When a case is considered by an arbitration composed of several arbitrators, the arbitral award shall be signed by the majority of the arbitrators. If an arbitrator refuses to sign the arbitral award and/or has a dissenting opinion, a corresponding note shall be made. The arbitral award shall indicate the arbitrators issuing the award, the parties to the arbitration proceedings, the date and place of the issuance of the award.

3. The arbitral award shall contain a reasoning part, which shall state the grounds on which the arbitration issued the award, except where the parties agreed on the absence of a reasoning part or where the arbitral award is issued in accordance with Article 38 of this Law.

4. Signed copies of the arbitral award shall be delivered to the parties.

5. The arbitral award shall enter into force from the moment of its issuance, unless otherwise established by the parties or by law.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Article 40. Termination of arbitration proceedings🔗

1. Arbitration proceedings shall terminate after the signing of the arbitral award and its transmission to the parties, or, in accordance with paragraph 2 of this Article, on the basis of a ruling of the arbitration.

2. The arbitration is entitled to adopt a ruling on the termination of the arbitration proceedings in the following cases:

a) if the arbitration claimant waives the arbitration claim, except where the arbitration defendant objects to the termination of the arbitration proceedings and the arbitration considers that the arbitration defendant has a legitimate interest in the resolution of the arbitration dispute;

b) if the parties have agreed on the termination of the arbitration proceedings;

c) if the arbitration determines that the continuation of the arbitration proceedings is not necessary or is impossible for any other reason.

Article 41. Correction and interpretation of the arbitral award, additional arbitral award🔗

1. Unless otherwise provided by the agreement of the parties, each party, after notification to the other party, is entitled, within 30 days from the rendering of the arbitral award:

a) to request the arbitration to correct an error made in the calculations given in the arbitral award, as well as its written, typographical or other similar errors;

b) where an agreement of the parties exists, to request the arbitration to give an interpretation in relation to any specific issue of the arbitral award or any part of that award.

2. The arbitration, if it considers the request substantiated, shall, within 30 days from its receipt, make the corresponding correction in the arbitral award or give the corresponding interpretation. Such interpretation is part of the arbitral award.

3. The arbitration is entitled, within 30 days from the rendering of the award, on its own initiative to correct the error indicated in subparagraph „a“ of paragraph 1 of this Article.

4. Unless otherwise provided by the agreement of the parties, each party, after notification to the other party, is entitled, within 30 days from the rendering of the arbitral award, to request the arbitration to render an additional award in relation to the claims that were submitted in the course of the arbitration proceedings but were not reflected in the award. The arbitration, if it considers this request substantiated, shall, within 60 days from its receipt, render an additional award.

5. The arbitration, where necessary, may extend by not more than 30 days the period within which it must correct an error, must give an interpretation or must render an additional award in accordance with this Article. Unless otherwise determined by the parties or the arbitration, the award already rendered remains in force during the making of the correction, the giving of the interpretation or the rendering of the additional award.

Article 42. Setting aside of the arbitral award🔗

1. Within the scope of this Law, the only procedural remedy against an arbitral award is the setting aside of the arbitral award, which shall be effected in accordance with paragraphs 2–5 of this Article.

2. The court is authorized to set aside an arbitral award made in Georgia only if:

a) the party against whom the arbitral award was made applies to the court with an application and proves that:

a.a) at the time of conclusion of the arbitration agreement, the party was under incapacity or was a recipient of support who had a supporter appointed in relation to the matters specified in the arbitration agreement, but did not receive the relevant support, or, under the legal norms to which the parties referred in the arbitration agreement, and in the absence of such reference – in accordance with Georgian legislation, the arbitration agreement is void or invalid;

a.b) the party seeking the setting aside of the arbitral award was not duly informed of the appointment of an arbitrator or of the arbitral proceedings, or was otherwise not given the opportunity to present its position or defend its interests;

a.c) the arbitral award was made on a dispute that the parties did not submit to arbitration, or the arbitral award contains a decision on a matter that falls outside the scope of the parties' request in arbitration. If the decision on the matters falling within the scope of the parties' request in arbitration can be separated from the matters falling outside the scope of the parties' request in arbitration, the arbitral award may be set aside only in the part that contains a decision on a matter that falls outside the scope of the parties' request in arbitration;

a.d) the composition of the arbitral tribunal or the arbitral proceedings did not comply with the agreement of the parties, and in the absence of such agreement – with the requirements of this Law;

b) the court finds that:

b.a) under Georgian legislation, the dispute cannot be the subject of arbitral proceedings;

b.b) the arbitral award contravenes the public policy existing in Georgia.

3. A party may file an application with the court for the setting aside of the arbitral award within 90 days from its delivery to it. If the parties submit a request provided for by Article 41 of this Law, the time limit for filing the application shall be counted from the moment of delivery to the parties of the relevant decision rendered by the arbitration in connection with the said request.

4. In the case of filing an application with the court, the enforcement of the arbitral award shall not be suspended, except for the case provided for by paragraph 3 of Article 45 of this Law.

5. If a court has rendered a judgment on the recognition and enforcement of an arbitral award, it shall be inadmissible to set aside the arbitral award on the ground on which the party sought refusal of recognition and enforcement of the arbitral award and which the court rejected as a result of consideration on the merits. In this case, an application for setting aside the arbitral award shall not be admitted, and if the application has been received, the proceedings thereon shall be terminated.

Law of Georgia No. 5265 of 11 November 2011 – website, 24.11.2011.

Law of Georgia No. 3218 of 18 March 2015 – website, 26.03.2015.

Law of Georgia No. 3360 of 20 March 2015 – website, 31.03.2015.

Article 43. Suspension by a court of the consideration of the setting aside of an arbitral award🔗

A court to which an application for setting aside an arbitral award has been submitted shall be entitled, on the basis of a party's motion, to suspend the consideration of the setting aside of the award for a period of not more than 30 days from the acceptance of the application for proceedings, in order to give the arbitral tribunal an opportunity to resume the proceedings or to take any other action which, in the opinion of the arbitral tribunal, is necessary to eliminate the ground for setting aside the award. The court shall notify the arbitral tribunal by notice of the suspension of the consideration of the case on the said ground within 3 days from the suspension of the consideration of the case.

Law of Georgia No. 3218 of 18 March 2015 – website, 26.03.2015.

Article 44. Recognition and enforcement of an arbitral award🔗

1. Regardless of the country in which the arbitral award was rendered, it shall be binding and, upon submission of a written motion to a court, shall be enforced subject to the provisions of this Article and Article 45 of this Law. In relation to awards rendered in Georgia, the Courts of Appeal shall be considered the competent court for the purposes of this Article and Article 45 of this Law, and in relation to awards rendered outside Georgia – the Supreme Court of Georgia.

2. The party moving for the recognition and enforcement of an arbitral award shall present the duly certified original of the arbitral award (for awards rendered outside Georgia) or a duly certified copy thereof, as well as the original of the arbitration agreement referred to in Article 8 of this Law or a duly certified copy thereof (if any). If the arbitral award or the agreement is not executed in the Georgian language, the party shall also present a duly certified translation of these documents into the Georgian language.

3. (deleted – 18.03.2015, No. 3218).

4. The enforcement of an arbitral award shall be carried out on the basis of a ruling of a court, in accordance with the Law of Georgia on Enforcement Proceedings.

Law of Georgia No. 3218 of 18 March 2015 – website, 26.03.2015.

Article 45. Refusal to recognize and enforce an arbitral award🔗

1. Regardless of the country in which the arbitral award was made, a party may be refused recognition and enforcement of this award if:

a) the party against whom the arbitral award was made applies to the court with an application and proves that:

a.a) at the time of the conclusion of the arbitration agreement, the party was under some incapacity or was a recipient of support who had a supporter appointed in relation to the matters specified in the arbitration agreement, but did not receive the relevant support, or under the legal norms to which the parties referred in the arbitration agreement, and in the absence of such reference – under the legislation of the country in which the arbitral award was made, the arbitration agreement is void or has ceased to be in force;

a.b) it was not duly informed of the appointment of an arbitrator or of the arbitral proceedings, or was otherwise unable to present its position or defend its interests;

a.c) the arbitral award was made in respect of a dispute that the parties did not submit to arbitration, or the arbitral award contains a decision on a matter that goes beyond the scope of the parties' claims in the arbitration. If the decision on matters that fall within the scope of the parties' claims in the arbitration can be separated from the matters that go beyond the scope of the parties' claims in the arbitration, the arbitral award may be recognized and enforced in part, only in the part that contains a decision on matters falling within the scope of the parties' claims in the arbitration;

a.d) the composition of the arbitral tribunal or the arbitral procedure did not comply with the agreement of the parties, and in the absence of such agreement – with the requirements of the law of the country where the arbitral proceedings were held;

a.e) the arbitral award has not entered into legal force, or it was set aside or suspended by a court of the country in which that award was made, or by a court of the country under the law of which the award was made;

b) the court finds that:

b.a) under the legislation of Georgia, the dispute cannot be the subject of arbitral proceedings;

b.b) the recognition and enforcement of the arbitral award is contrary to public policy.

2. It is inadmissible to apply to the court with an application for refusal to recognize and enforce an arbitral award made in Georgia on the same grounds on which the party sought to set aside the said arbitral award, or in the case where the party did not challenge the arbitral award within the time limit determined by paragraph 3 of Article 42 of this Law.

3. If a complaint for setting aside an arbitral award is filed with the court referred to in subparagraph „a.e“ of the first paragraph of this Article, or a motion for suspension of the enforcement of an arbitral award is submitted, the court to which a motion for recognition and enforcement of the arbitral award has been addressed shall be entitled to postpone the rendering of a decision for not more than 30 days and, at the request of the party seeking recognition or enforcement, to order the other party to provide appropriate security.

Law of Georgia of 18 March 2015 No. 3218 – website, 26.03.2015.

Law of Georgia of 20 March 2015 No. 3360 – website, 31.03.2015.

Article 46. Rule for hearing arbitration disputes initiated before the entry into force of this Law and still pending🔗

1. Arbitration disputes initiated before the entry into force of this Law and still pending shall be heard in accordance with the rules determined by the Law of Georgia of 17 April 1997 "On Private Arbitration", unless the parties have agreed to hear the said disputes in accordance with the rules determined by the Law of Georgia "On Arbitration".

2. Recognition and enforcement of decisions rendered in the arbitration disputes provided for by the first paragraph of this Article shall be carried out in accordance with the rules determined by this Law.

Article 46¹. Legal regulation during the transitional period relating to persons declared legally incapable by a court before 1 April 2015🔗

1. A court shall be authorised to set aside an arbitral award rendered in Georgia if the party against whom the arbitral award was rendered applies to the court with a complaint and proves that, at the time of the conclusion of the arbitration agreement, the party was a person declared legally incapable by a court before 1 April 2015, until his or her individual assessment is carried out.

2. Regardless of the country in which the arbitral award was rendered, recognition and enforcement of this decision may be refused to a party if the party against whom the arbitral award was rendered applies to the court with an application and proves that, at the time of the conclusion of the arbitration agreement, the party was a person declared legally incapable by a court before 1 April 2015, until his or her individual assessment is carried out.

Law of Georgia of 20 March 2015 No. 3360 – website, 31.03.2015.

Article 47. Normative act declared invalid🔗

Upon the entry into force of this Law, the Law of Georgia of 17 April 1997 "On Private Arbitration" shall be declared invalid.

Article 48. Entry into force of the Law🔗

This Law shall enter into force from 1 January 2010.

President of Georgia M. Saakashvili

Tbilisi,

19 June 2009.

No. 1280–Is