About Intellectual Property IP Training Respect for IP IP Outreach IP for… IP and... IP in... Patent & Technology Information Trademark Information Industrial Design Information Geographical Indication Information Plant Variety Information (UPOV) IP Laws, Treaties & Judgements IP Resources IP Reports Patent Protection Trademark Protection Industrial Design Protection Geographical Indication Protection Plant Variety Protection (UPOV) IP Dispute Resolution IP Office Business Solutions Paying for IP Services Negotiation & Decision-Making Development Cooperation Innovation Support Public-Private Partnerships AI Tools & Services The Organization Working with WIPO Accountability Patents Trademarks Industrial Designs Geographical Indications Copyright Trade Secrets WIPO Academy Workshops & Seminars IP Enforcement WIPO ALERT Raising Awareness World IP Day WIPO Magazine Case Studies & Success Stories IP News WIPO Awards Business Universities Indigenous Peoples Judiciaries Genetic Resources, Traditional Knowledge and Traditional Cultural Expressions Economics Gender Equality Global Health Climate Change Competition Policy Sustainable Development Goals Frontier Technologies Mobile Applications Sports Tourism PATENTSCOPE Patent Analytics International Patent Classification ARDI – Research for Innovation ASPI – Specialized Patent Information Global Brand Database Madrid Monitor Article 6ter Express Database Nice Classification Vienna Classification Global Design Database International Designs Bulletin Hague Express Database Locarno Classification Lisbon Express Database Global Brand Database for GIs PLUTO Plant Variety Database GENIE Database WIPO-Administered Treaties WIPO Lex - IP Laws, Treaties & Judgments WIPO Standards IP Statistics WIPO Pearl (Terminology) WIPO Publications Country IP Profiles WIPO Knowledge Center WIPO Technology Trends Global Innovation Index World Intellectual Property Report PCT – The International Patent System ePCT Budapest – The International Microorganism Deposit System Madrid – The International Trademark System eMadrid Article 6ter (armorial bearings, flags, state emblems) Hague – The International Design System eHague Lisbon – The International System of Appellations of Origin and Geographical Indications eLisbon UPOV PRISMA UPOV e-PVP Administration UPOV e-PVP DUS Exchange Mediation Arbitration Expert Determination Domain Name Disputes Centralized Access to Search and Examination (CASE) Digital Access Service (DAS) WIPO Pay Current Account at WIPO WIPO Assemblies Standing Committees Calendar of Meetings WIPO Webcast WIPO Official Documents Development Agenda Technical Assistance IP Training Institutions COVID-19 Support National IP Strategies Policy & Legislative Advice Cooperation Hub Technology and Innovation Support Centers (TISC) Technology Transfer Inventor Assistance Program WIPO GREEN WIPO's Pat-INFORMED Accessible Books Consortium WIPO for Creators WIPO Translate Speech-to-Text Classification Assistant Member States Observers Director General Activities by Unit External Offices Job Vacancies Procurement Results & Budget Financial Reporting Oversight
Arabic English Spanish French Russian Chinese
Laws Treaties Judgments Browse By Jurisdiction

Georgia

GE031

Back

Law of Georgia on Private Arbitration

 Law of Georgia on Private Arbitration

LAW OF GEORGIA

ON PRIVATE ARBITRATION

Chapter I

General Provisions

Article 1.

A civil dispute which has arisen between persons shall, in agreement of the parties proper,

be submitted for the consideration to the permanent or created for this dispute temporary

private arbitration (hereinafter arbitration).

An agreement for submitting a dispute to the arbitration (the arbitration agreement) shall

be made in writing.

Article 2.

The arbitration agreement shall include: the names, the places of residence or legal

addresses of the parties; the subject-matter of the dispute; the date and place of the

agreement.

Article 3.

If during the arbitrage proceedings a criminal case has been initiated on the matter which

is the subject of the dispute and which may influence the outcome of the proceedings, on

the basis of the Court's decision arbitration shall not be deemed to be conducted.

Article 4.

If an arbitration agreement is the part of the agreement concluded between the parties, the

arbitrage award on invalidation of the agreement shall not invalidate the arbitration

agreement by force of law.

Article 5.

The death or liquidation of a party shall not cause the termination of the arbitration

agreement or replacement of the already appointed arbitrator, unless the parties have

agreed otherwise.

Article 6.

A party's claim or a request of the arbitration, on matters defined by this Law, shall be

considered by a district (city) court on whose territory the arbitrage proceedings are taking

place.

Article 7.

The permanent arbitration shall conduct its activities after registration according to the

rules established by the Law of Georgia On Entrepreneurs.

Each permanent arbitration shall before commencing its activity adopt and publish through

the Mass Media statute containing the rules of appointment of the arbitration and conduct

of the arbitrage proceedings.

Chapter II

Establishment of Arbitration

Article 8.

A citizen of Georgia, a stateless person or a foreign national may be appointed as an

arbitrator. A person shall not be appointed as arbitrator if he/she is: a person with lack

of dispositive legal capacity or with a limited dispositive legal capacity; a political

official or state employee; a person convicted for committing a deliberate crime; one

of the party's or his/her representative's spouse, child, mother, father, sister or brother.

A person's shall give consent to his appointment to the office of arbitration in writing.

Article 9.

Arbitration shall be composed of one or several arbitrators. The number of arbitrators and

the rules of their appointment shall be defined by the parties. The parties shall appoint an

equal number of arbitrators. An arbitration agreement shall not be valid if it gives one of

the parties a privileged position with regard to the appointment of arbitrators. The number

of arbitrators shall not be even. If the arbitration agreement provides for an even number of

arbitrators, an additional arbitrator shall be appointed within five days of the establishment

of arbitration. If the parties have not settled the number of arbitrators themselves, the

arbitration shall be composed of three arbitrators.

If the parties do not specify the procedure of appointment of arbitrators themselves, the

parties shall under the rule defined in this Law appoint an equal number of arbitrators, and

an additional arbitrator shall be appointed by already appointed arbitrators.

If the parties and the permanent arbitration do not agree otherwise, the number of

arbitrators and a method of their appointment shall be defined by the permanent arbitration

in accordance with its statute.

Article 10

A party may delegate the right to appoint an arbitrator to a third person.

Article 11

Each party shall appoint an arbitrator within the period defined in the agreement. Where

the period has not been defined, the party shall appoint an arbitrator within ten days after

the receiving of the demand of other party.

If the party or arbitration has not appointed the arbitrator within the period defined by the

agreement or law, at the request of either party the judicial authority shall appoint an

arbitrator within five days. The judicial authority's decision on the appointment of

arbitrator shall be final and shall not be subject to appeal.

Article 12

A party has no right to replace an arbitrator appointed by him, unless the parties have

agreed otherwise.

Article 13

Where the appointed arbitrators are more that one in number, they shall appoint one of

themselves to be chairman of arbitrator.

The arbitration shall appoint the chairman of arbitration within five days after the

establishment of the arbitration or at the first meeting of the arbitration, unless the parties

have agreed otherwise.

Article 14

If the arbitrator is replaced, a new arbitrator shall be appointed in accordance with the

same procedure governing the appointment of the replaced arbitrator.

Article 15

A party has the right to demand replacement of an arbitrator if there exists the grounds

indicated in paragraph 2 of Article 8 of this Law or other grounds which give rise to

reasonable doubts with regard to the arbitrator's impartiality or independence, or if the

arbitrator does not know the language of the proceedings or lacks competence defined by

the parties by the agreement. A party has the right to challenge an arbitrator appointed by

him only on a ground of which the party becomes aware after the appointment.

A person appointed as an arbitrator shall give notice to the parties and the arbitration on

the existence of the circumstances which may give rise doubt on his impartiality and

independence. The challenge procedure shall be defined by the agreement of the parties.

Unless there is not an appropriate agreement between the parties, the party who intends

challenging of an arbitrator shall submit a statement of challenge in writing within 10 days

from the appointment of this arbitrator or from the date on which he/she becomes aware of

the ground of challenge. The statement shall state the reasons of challenge.

If the arbitrator, on whom the matter of challenge has been arisen, has not resigned, or if

the other party objects his/her resignation, the matter of challenge shall be decided by the

arbitration.

Article 16

If an arbitrator cannot perform his office, he/she may be replaced at his own or either

party's request by the arbitration or by mutual agreement of the parties.

The arbitration shall at the arbitrator's request decide on his/her resignation only if

there is any reasonable ground.

The award of arbitration envisaged in paragraphs I and 2 of this Article may be recoursed

before the Judiciary.

The judicial authority's decision on the arbitrator's removal from office shall be final and

shall not be subject to recourse.

Chapter III

Arbitrage Proceedings

Article 17

The ground for commencing the consideration of a dispute between the parties (the

arbitrage proceedings) is a party's arbitrage claim, which shall be delivered to the other

party and the chairman of the arbitration, or to all the appointed arbitrators where the

chairman of the arbitration has not been appointed yet. The arbitrage proceedings shall

commence within 10 days after the arbitrage claim has been presented before the

arbitration. If, in presenting the arbitrage claim, the composition of the arbitration has not

been yet formed, the arbitrage proceedings shall commence within 10 days after all the

arbitrators have been appointed, unless the parties have agreed otherwise.

Article 18

The rules of the arbitrage procedure shall be defined by the parties. If the parties

disagree on the rules of the arbitrage procedure, the dispute shall be decided under the

procedure established by the arbitration.

A dispute in the permanent arbitration shall be decided in accordance with its statute,

unless the parties and the permanent arbitration have agreed otherwise.

Article 19

Each party shall have the right to be represented by a defender (an advocate) at any stage

of the arbitrage proceedings.

Article 20

The arbitration shall notify the parties in writing on the date and place of each meeting in

advance of 5 days at least, unless the parties established otherwise.

The written notice shall be deemed to be received if handed to the addressee personally or

at his/her permanent place of residence or at his/her legal address. The arbitration shall

deliver to the party the copies of all statements, documents, requests and other information

of another party within two days of their receipt, unless the parties have agreed otherwise.

Article 21

The arbitration may voluntarily interrogate witnesses and request the presentation of

evidence, unless the parties have provided otherwise. If a witness's voluntary appearance

or presenting of evidence is impossible, the arbitration shall be authorized to refer to the

judicial authority on the appearance of the witness or requesting of evidence. The rights

and duties of a witness summoned shall be specified in accordance with the legislation of

Georgia on Civil Procedure.

Article 22

The arbitration may at a party's request appoint one or several experts on specific issues of

the case, unless the parties have provided otherwise. The refusal of arbitration to appoint

an expert shall be substantiated. The arbitration shall appoint an expert if so requested by

the parties. A party shall, where appropriate decision of arbitration exists, present the

expert all available information, objects and documents relating to the case, unless the

parties have agreed otherwise. The expert's report shall not be binding upon the arbitration,

unless the parties have agreed otherwise.

Article 23

The arbitration shall on own initiative or at a party's request appeal to the judiciary

authority to make decision for providing of evidence.

Article 24

The arbitrage meetings shall be closed, unless the parties have agreed otherwise.

The arbitrage proceedings shall be conducted orally, unless the parties have agreed

otherwise.

Article 25

The arbitrage proceedings shall be conducted on the basis of equality of the parties. The

arbitration shall not decide a dispute without having heard the explanations of the parties,

except the case where a party evades the appearance before the arbitration for giving the

explanations, unless the parties have agreed otherwise.

Article 26

If without a justified reason, a party does not appear or does not present his case within the

period defined by the parties, the arbitration may consider the dispute and make an award,

unless the other party requests postponement of the examination of the case.

Article 27

An arbitrator shall keep information obtained during the arbitrage proceedings

confidential, unless the parties have agreed otherwise.

Article 28

If any provision of this Law, from which the parties may deviate, or any requirement of the

arbitration agreement were not observed, and yet the party continues to participate in the

arbitrage proceedings without immediately objecting in writing or within the defined

period, if any, the party shall be deemed to challenge his/her right to object.

Article 29

The place of the arbitrage proceedings shall be defined by an agreement of the parties. In

there is no such agreement of parties, the place of the arbitration proceeding shall be the

place of the arbitrage agreement.

Unless the parties have agreed otherwise, the arbitration may meet at any place for holding

consultations with the members, hearing out the witnesses, experts or the parties, for

examining evidence.

Article 30

The judicial authority shall have no right to consider a dispute on the issue that is the

subject of an arbitration agreement, except the case where the parties request the dispute to

be considered by judicial authority, or if the judicial authority finds that the arbitration

agreement is not valid or has terminated. A appeal to the judicial authority for invalidation

of the arbitrage agreement shall not imply termination of the arbitrage proceedings or

enforcement of an arbitrage award.

Article 31

The date on which the arbitrage award is made shall be defined under agreement of the

parties. If the parties do not define the date on which the award is made, the arbitrage

award shall be made within one month from the date of the commencement of arbitrage

proceedings.

If the award is not made within the defined period, the arbitrator shall resign, unless the

parties have agreed otherwise. In such case the parties shall within 10 days appoint new

arbitrators. If the arbitration established on the basis of paragraph three of this Article fails

to make an award within the defined period, the arbitration agreement shall be annulled,

unless the parties have agreed otherwise.

Article 32

The arbitration or a party may request the judicial authority for the assistance in

gathering of evidence. The judicial authority shall comply with this request within its

jurisdiction and in accordance with the rules established for gathering of evidence.

Article 33

The parties shall be entitled to settle the dispute at any stage of the arbitrage proceedings.

The arbitration shall make a decision on the termination of the arbitrage proceedings

within 3 days from the date on which the parties have applied for a settlement.

Article 34

The arbitration composed of more than one arbitrators shall make awards by a majority of

the arbitrators voting, unless the parties have agreed otherwise. An arbitrator may not

abstain from voting, unless the parties have agreed otherwise.

Article 35

An arbitrage award shall be set down in writing and shall contain: the date and place of

making the award and the composition of the arbitration; the arbitration agreement on

which basis the arbitration was acted; all the parties of the dispute; the subject-matter of

the dispute; the motivation part stating the opinions on the basis of which the arbitration

has made an award, except the case where the arbitration agreement directly defines non -

existence of such a motivation part; the arbitrage award; the term of the enforcement of

award.

Article 36

An arbitrage award shall be signed by all the arbitrators. If an arbitrator refuses to sign the

arbitration agreement, this fact shall be recorded in the award. An arbitrage award shall be

notarized.

A copy of the arbitrage award shall be given to each party and the district (city) court

within whose jurisdiction the arbitration took place.

An arbitrage award shall be binding upon the parties; An arbitrage award shall not put any

liability to a third person.

Article 37

A decision on the distribution of the expenses of the arbitrage proceedings between the

parties shall be made by the arbitration, unless the parties have agreed otherwise.

Article 38

The parties may agree the case to be reviewed by other arbitration. The review shall be

made within 30 days, unless the parties have provided otherwise.

Article 39

The permanent arbitration shall keep the award within 20 years from the date of its

making. After the temporary arbitration has completed the conduct of the proceedings, the

entire arbitrage proceedings shall be given for keeping to the district (city) court within

whose jurisdiction the arbitration took place.

Chapter IV

Recourse Against Award and Enforcement of award

Article 40

In the case of existence of an appropriate agreement between the parties, a party may, for

the purpose of a more precise definition of the contents of any provision of the award,

request the arbitration to interpret any part of the award.

The arbitration shall, within 30 days from receipt of a request for interpretation, give an

interpretation or make a decision to refuse interpreting. An arbitrage award's interpretation

shall form part of the award, unless the parties have agreed otherwise.

Article 41

A party shall be authorized to request the arbitration to correct a mistake made in the

calculation given in arbitrage award, as well as its written, printed or any similar mistake,

unless the parties have provided otherwise.

Article 42

An arbitrage award which has not been executed voluntarily shall be enforced on

the basis of the enforcement inscription on the coming into force of arbitrage award

made by the chairman of the arbitration.

The chairman of arbitration shall make the enforcement inscription either on his/her own

initiative or on the basis of the request of the arbitration or a party within 5 days from

submission of such a request to him/her.

Upon making of an enforcement inscription, an arbitrage award shall be enforced

according to the rules defined by the legislation of civil procedure.

Article 43

An arbitrage award may be contested before a judicial authority and may be changed only

if: it contradicts the Code of administrative Offences and the criminal legislation; the

arbitration has violated the rules of the arbitrage procedure established under agreement of

the parties and the present Law;

an arbitrator has committed an act provided for in Article 189 of the Criminal Code of

Georgia that is decided by the judgement entered into legal force, except the case where it

has not influenced the making of the arbitrage award.

Article 44

In the case of recourse against the award the enforcement of arbitrage award shall not be

suspended. A district (city) court shall be authorized to suspend enforcement of the

recourse arbitrage award if it may cause an irremediable damage to a party.

Chapter V

Final Provisions

Article 45

This Law shall be come into force upon its publication.

President of Georgia

Eduard Shevardnadze

Tbilisi,

17 April ,1997