Tbilisi Arbitration Institute Arbitration Rules (Amended on July 01, 2016)
Section I – General Provisions
Article 1. Definitions
Article 2. Operating principles of Tbilisi Arbitration Institute
Article 3. Equality, Disposition and Adversarial principles
Article 4. Arbitration Rules in time
Article 5. The analogy of the Law and Justice
Article 6. Seat of arbitration
Article 61. Time Limits
Article 7. Confidentiality
Article 8. Written and Oral forms of arbitral proceedings
Section II – Appointment, Challenge, and Resignation of Arbitrators Article 9. Selection of arbitrators
Article 10. Numbers of arbitrators and the rule of appointment
Article 11. Chairman of Arbitration Institute
Article 12. List of arbitrators
Article 13. Recognition arbitrators’ authority
Article 14. Challenge of Arbitrators
Article. 15. Resignation of Arbitrators
Section III Notice and Summons
Article 16. Notifications of parties and representatives Article 17. Results of the failure to serve
Article. 18. Content of arbitral summon
Article. 19. Sending arbitral summon
Article 20. Notification in the absence of the addressee
Article 21. Refusal to accept arbitral summon
Article 22. Change of address during the arbitral proceedings Article 23. Delivery of arbitral summons to the joined parties Article 231. Delivery of arbitral summons using technical means Article 24. Public Notice
Section IV Arbitration Proceedings
Article 25. Commencing the arbitration proceedings. Request for arbitration. Article 26. Interim measures
Article 27. (Cancelled on 18.01.2010)
Article 28 (Cancelled on 18.01.2010)
Article 29. (Cancelled on 18.01.2010)
Article 30. (Cancelled on 18.01.2010)
Article 31. (Cancelled on 18.01.2010)
Article 32. Answer to the request for arbitration Article 33. Competence of competence
Article 34. Certain issues of oral hearings
Article 35. Evidence, estimation and exploration of evidence
Article 36. Oral hearings
SectionIV1. Mediationinarbitrationproceedings(Added01.07.2016) Article 361. The essence of mediation in arbitration proceedings
Article 362. Procedure and time limits of Mediation in arbitration
Section IV2. Documents only arbitration (added 20.05.2016)
Article 363. Documents only arbitration proceedings
Section V. Arbitral Award
Article 37. The rule of making the award
Article 38. Allocation of the costs between the parties
Article 39. Correction and interpretation of the Award
Article 40. Enforceability of the Award
Section VI. Termination of the proceedings without making an award
Article 41. The grounds for termination of the proceedings without making an award
Article 42. The refusal of the Arbitration Institute to commence Article 43. Termination of the proceedings
Article 44. Dismissing the arbitral request without consideration Article 45. Withdrawal of the arbitral claim
Section VII. Final Provisions
arbitration proceedings
Article 46. Entry into force of Rules
Article 461. Ethics
Article 47. Costs
Article 48. The results of the setting aside an award and the refusal of recognition and enforcement
Article 1. Definitions
Section I General Provisions
If the law does not provide otherwise used terms shall have the following meanings:
Arbitration Institute – Tbilisi Arbitration Institute.
Arbitration Agreement (clause) – Written agreement based on which the Arbitration Institute is authorized to
consider the dispute and render a final award.
The Subject of Arbitration Proceedings – Any dispute between parties which shall be resolved by the Arbitration Institute and according to law is not prohibited to be resolved by arbitration and does not contradict morality and/or public order.
Rules – the Rules drafted according to the Law of Georgia on Arbitration and effective legislation of Georgia, approved by the shareholder resolution of Tbilisi Arbitration Institute and used by the Arbitration Institute during arbitration proceedings (Amended on 18.01.2010).
Arbitral Proceedings – Arbitration proceedings organized according to the Law of Georgia on Arbitration, effective legislation of Georgia and the rules aiming to resolve the dispute between parties (Amended on 18.01.2010).
Chairman of the Arbitration Institute – Person authorized to manage and represent the Arbitration Institute according to the power granted by the law, the charter of the Arbitration Institute, the arbitration agreement and the Rules.
Arbitrator – A neutral individual authorized by the law, the arbitration agreement and the Rules to resolve the dispute.
Arbitral Tribunal – Three or more arbitrators.
Arbitration – The chairman of the Arbitration Institute, sole arbitrator or Arbitral Tribunal (Amended on 18.01.2010).
Chairman of Arbitral Tribunal – The Arbitrator appointed as chairman of the Arbitral Tribunal according to the arbitration agreement and the Rules.
Party – A person involved in the arbitration agreement or/and his or her representative (Amended on 18.01.2010).
Arbitral Claim – The claim as defined by the Law of Georgia on Arbitration and filed with the Arbitration Institute according to which the claimant requests imposition of certain action or refrainment from such action over the respondent in favor of the claimant (Amended 18.01.2010).
Claimant- The requesting party (Amended on 17.02.2016).
Respondent - The party against whom the Arbitral Claim was filed (Amended on 17.02.2016).
Costs of Arbitration - Fees to be paid by the Claimant for resolving the dispute and rendering a final award.
Article 2. Operating Principles of the Arbitration Institute (Amended on 18.01.2010)
2.1. The Arbitration Institute operates under the Constitution of Georgia, the effective legislation of Georgia and the International treaties ratified by Georgia.
2.2. If the arbitration agreement is part of a contract between the parties and the Arbitral Tribunal decides that the contract is to be annulled, annulment of the contract does not result in invalidity of the arbitration agreement.
2.3. If criminal proceedings commence on issues which are the subject matter of Arbitral Proceedings or which may have an effect on Arbitral Proceedings, based on court ruling, arbitration shall be considered invalid. If Arbitral Proceedings are not finished, taking into consideration the circumstances of the case and agreement between the Arbitrators, the Chairman of the Arbitration Institute is authorized to refuse to hold Arbitral Proceedings.
2.4. Arbitration operates under the law, the arbitration agreement and the Rules. Any intervention in arbitration activates is prohibited, except in cases provided by the law.
2.5. Existence of an arbitration agreement between the parties, based on which the Arbitration Institute has authorization to resolve a dispute, excludes authorization of state or non-state bodies to resolve the dispute between the parties.
2.6. A court is not authorized to commence proceedings on matters which are subject to an arbitration agreement unless it finds the agreement to be void, invalid or incapable of being performed.
2.7. A claim before the court requesting annulment of an arbitration agreement shall not terminate the Arbitral Proceedings or enforcement of an award, unless otherwise provided by the law or court ruling (Amended 18.01.2010).
2.8. If any provision of the Rules which may be derogated by the parties or any requirement of the arbitration agreement is not fulfilled and any party continues to participate in Arbitral Proceedings and does not object to such breach or derogation, it shall be deemed that the party waived its right to object.
2.9. An arbitration agreement based on which the Arbitration Institute has authorization to resolve a dispute includes an agreement on the Rules.
2.10. Parties are authorized to derogate from the Rules and agree on different rules which are obligatory for the Arbitration Institute if the law allows.
Article 3. Equality, Disposition and Adversarial principles
3.1. Arbitral proceedings commence by the initiative of the party or parties filing a claim. 3.2. Filing a claim is allowed only in cases where there is an arbitration agreement.
3.3. The arbitration agreement shall explicitly stipulate that the Arbitration Institute has authorization to resolve a dispute arising from the precise legal relationship.
3.4. An arbitration agreement according to which all disputes between the parties shall be resolved by the Arbitration Institute is void.
3.5. If the party filed a claim and there is no arbitration agreement, the chairman has the right but not the obligation to send the respondent a draft of the arbitration agreement and offer to resolve the dispute at the Arbitration Institute. If the respondent accepts the offer and signs the arbitration agreement, the Arbitration Institute shall have authority to resolve the dispute.
3.6. If the claims of the parties lie beyond the scope of the arbitration agreement, the arbitrator has the right to offer them to conclude an additional arbitration agreement.
3.7. If the parties fail to enter into an additional arbitration agreement as defined under Article 3.6 and the Arbitration Institute is authorized to resolve the dispute only within the scope originally defined by the parties, the Arbitration Institute shall explain to the parties the scope of Arbitral Proceedings. Such an explanation shall be included in the arbitral protocol.
3.8. The parties themselves define the subject matter of the dispute by arbitration agreement and themselves take the decision to file a claim.
3.9. The parties may settle their disputes during arbitration proceedings. A claimant may withdraw a claim and a respondent may acknowledge a claim.
3.10. Arbitral proceedings shall be conducted based on adversarial principles. Parties shall enjoy equal rights and opportunities to substantiate their claims, reject or extinguish claims, opinions or evidence presented by other parties. Parties shall determine themselves which facts their claims must be based, and which evidence must be used to verify those facts.
3.11. To establish the details of a case, on its own initiative the Arbitration Institute may take actions under the law, the arbitration agreement and the Rules, if such actions are not directly prohibited by law.
Article 4. Arbitration rules in time
4.1. During Arbitral Proceedings the Rules shall be used which are in force at the moment of commencement of Arbitral Proceedings or conducting certain actions.
4.2. The Arbitration Institute has an obligation to send the parties the Rules, which are in force at the moment of commencement of Arbitral Proceedings or conducting certain actions.
Article 5. Analogy of law and justice
5.1. During arbitration proceedings and resolution of a dispute, the Arbitration shall use the Constitution of Georgia, the effective legislation of Georgia and the International treaties ratified by Georgia.
5.2. If there is no law that can regulate a dispute relationship, the Arbitrator shall apply the law regulating similar relationships (analogy of law), and if no such law is available either, then the Arbitration shall apply general principles of the legislation of Georgia (analogy of justice).
5.3. If there is no provision in the Rules that can regulate certain relationships arising during arbitration proceedings, the Arbitration shall apply a provision regulating similar relationships, and if no such provision is available the Arbitration shall apply general principles of international arbitration.
Article 6. Seat of Arbitration
6.1. Unless otherwise agreed by the parties, the seat of arbitration is the actual location of the dispute. A model arbitration agreement offered by the Arbitration includes the address of the location of the Arbitration Institute.
6.2. Unless otherwise agreed to by the parties, the Arbitral Tribunal may convene a meeting at any place for consultation among arbitrators, for hearing witnesses, experts or the parties, or for inspection of evidence or any other actions helpful for resolving the dispute timely and fairly.
Article 61. Time Limits (Amended on 18.01.2010)
6.11. Unless otherwise agreed to by the parties, a term provided for in these Rules, to be calculated in days, begins
from the day following the day of occurrence of the event, determined as its commencement.
6.21. If the last day of a term falls on a holiday or non-business day, the following business day is deemed to be the end
of the term.
Article 7. Confidentiality
7.1. Unless otherwise agreed by the parties, hearing and all documentation related to Arbitral Proceedings is confidential. The arbitrators and any person participating in the Arbitral Proceedings must keep confidential information disclosed to them during the Arbitral Proceedings.
7.2. If there is a written permission of the parties, the Chairman of the Arbitration Institute is entitled to allow a third party to review documentation related to the Arbitral Proceedings only for research and teaching purposes.
7.3. A third party who is allowed to review documentation related to Arbitral Proceedings signs a declaration and undertakes not to disclose the content of the documentation. The information obtained from the Arbitral Proceedings shall be used in such a manner that identification of the dispute and parties is impossible.
Article 8. The form of arbitration proceedings
8.1. Unless otherwise agreed by the parties, the Arbitration holds oral hearings.
8.2. Parties may agree that the Arbitration Institute resolve the dispute without oral hearings based only on written positions and evidence.
8.3. A party may offer another party, through the arbitration, to the resolve dispute without oral hearings. The arbitration is authorized to resolve the dispute without oral hearings if the other parties submit written consent.
Section II – Appointment, Challenge, and Resignation of Arbitrators
Article 9. Selection of Arbitrators
9.1. According to the Rules, the arbitrator shall be a neutral person meeting the requirements agreed by the parties. 9.2. A person shall not be appointed as an arbitrator, if he/she:
a) Has limited legal capacity or is a beneficiary of support;
b) Is a state political official or public servant;
c) Has been convicted of committing an intentional crime;
d) Is a relative of a party or a party’s representative;
e) Has not the profession, education and experience agreed by the parties; or
f) There are certain circumstances and evidences causing a reasonable assumption that the person will be influenced by one of the parties.
Article 10. Number of Arbitrators and the Rule of Appointment (Amended 28.10.2010)
10.1 Unless otherwise agreed by the parties, a dispute will be resolved by the Chairman himself or a sole arbitrator appointed by the Chairman. Any agreement is void based on which one of the parties has the privilege to appoint an arbitrator.
10.2 Due to the complexity of the dispute and other circumstances, the Chairman of the Arbitration Institute is entitled to appoint three Arbitrators to resolve a dispute.
10.3 According to the order based on which the dispute shall be resolved by the three arbitrators, the Chairman of the Arbitration Institute shall explain to the parties that each party has the right to nominate one arbitrator within a period of 10 days from the receipt of notification of the order of the arbitrator. If party-appointed arbitrators do not nominate a Chairman of the Arbitral Tribunal within a period of 5 days, the Chairman of the Arbitration Institute shall appoint the Chairman of the Arbitral Tribunal.
10.4 If the Arbitral Tribunal is not composed according to article 10.3 of the Rules, all three arbitrators shall be appointed by the Chairman of the Arbitration Institute.
10.5 If the parties agree to resolve the dispute by three arbitrators but have not determined the rules and terms of composition of the Arbitral Tribunal, the Arbitral Tribunal shall be composed according to this article.
10.6 A party may transfer a right to nominate an arbitrator to another person. A notary shall approve such transfer of right.
10.7. If multiple claimants or multiple respondents nominate more than one arbitrator, the Arbitration Institute shall explain that claimants, jointly, and multiple respondents, jointly, shall nominate one Arbitrator within a period of 10 days.
10.8 If the parties do not nominate one arbitrator according to article 10.7 within 10 days, the Chairman of the Arbitration Institute shall appoint all three Arbitrators.
Article 11. Chairman of the Arbitration Institute (Amended on 28.10.2010)
11.1. The authority of the Chairman of the Arbitration Institute is determined by these rules. 11.2. The special powers of the Chairman of the Arbitration Institute are as follow:
a) To admit an arbitration claim (amended on 28.10.2010);
b) To review and decide on motions regarding interim measures related to arbitration claims; and c) To dismiss an arbitration claim before its action proceeding.
Article 12. List of Arbitrators
12.1. The Arbitration Institute publishes a list of arbitrators.
12.2. During a selection process the parties are able to use the list of the arbitrators;
12.3. The list of the arbitrators does not limit the parties’ right to choose other candidate who is not in the list of the arbitrators. However, the other person should satisfy the conditions, which are stipulated by effective law, rules and arbitration agreement.
Article 13. Recognition of Arbitrators’ Authority (Amended on 28.10.2010)
13.1. The person appointed as an arbitrator by a party or Arbitration Institute gives consent in writing. Together with accepting appointment in writing that person signs a declaration under which he/she states that he/she is not in contractual, professional, business, family and other relationships with the parties likely to give rise to justifiable doubts as to his or her impartiality or independence. The person to be appointed as an arbitrator must prove that he/she has not already presented his/her opinion regarding the prospective of dispute resolution. (Edited on 28.10.2010)
13.2. The Arbitration Institute is obliged to send to the party arbitrator’s statement and declaration together with the decision stipulated under Article 10.3. (Edited on 28.10.2010)
13.3. The party which applies to the Arbitration Institute with arbitrator appointment statement together with this statement must submit to the Arbitration Institute accepting appointment in writing signed by the arbitrator, declaration of impartiality or independence in timeframe stipulated by Article 10.3. Arbitrator appointment statement must consist of arbitrator’s Name, last name, ID number, telephone/mobile number, profession and address of the actual place of residence or any other address where it is possible to connect to the arbiter. (Edited on 28.10.2010)
13.4. The arbitrator is entitled to hear the case only after the approval of his/her authority by the Arbitration Institute. The Arbitration Institute must give explanation to the parties regarding the approval of refusal of the arbitrator’s authority. The Arbitrator’s authority is deemed to be approved if Arbitration Institute does not render decision regarding refusal. (Amended on 28.10.2010)
13.5. Arbitration Institute is not able to approve the arbitrator’s authority before submitting by the party accepting appointment in writing signed by the arbitrator and declaration of impartiality or independence. However, the Arbitration Institute is entitled to issue a refusal at the moment of candidate’s nomination by the party.
13.6. While sending the parties a declaration under Article 10.3, the Arbitration Institute is obliged to define to the parties their obligations regarding nominating the arbitrator candidate, approval of authority, submission of acceptance of appointment in writing and signed by the arbitrator and declaration of impartiality or independence. The parties must be informed in writing that non-performance of obligations stipulated under Article 10.3 will be considered a delay of the case’s hearing and a refusal of appointing an arbitrator (Added on 28.10.2010).
13.7. If the arbitrator appointed by the party or the Arbitration Institute has already submitted acceptance of appointment and declaration of impartiality or independence and even once fails to appear at a hearing without providing valid reasons, a chairman of the Arbitration Institute will define to the parties that a delay of the case’s hearing and a gross violation of obligations has occurred, and due to failure of appearance the arbitrator will be dismissed. On the same day of dismissal, a chairman of the Arbitration Institute will appoint a new arbitrator and assign the obligation to hear the case to a new arbitral tribunal. (Added on 28.10.2010);
Article 14. Challenge of arbitrator (Amended on 28.10.2010)
14.1. If there is any ground stipulated by Article 9 of this arbitration rule or there are circumstances that may cause reasonable doubt about the arbitrator’s impartiality or independence, or if the arbitrator does not meet the qualifications or does not know the arbitration language, any party to the arbitration has the right to challenge the arbitrator.
14.2. A party may challenge an arbitrator appointed by him/her only for reasons that become known to him/her after the appointment of the arbitrator.
14.3. The person who offered the appointment of an arbitrator is obliged to deny signature of the declaration and provide information to the parties and the Arbitration Institute about any circumstances that make his/her impartiality and independence doubtful.
14.4. (Cancelled on 28.10.2010).
14.5. Within 15 days from the day that the appointment of the arbitrator or one of the grounds for challenge provided for by the “Law of Georgia on Arbitration” become known to him/her, a party who intends to challenge an arbitrator is obliged to submit a written statement of challenge of the arbitrator to the arbitral tribunal. A written statement of challenge of an arbitrator must indicate the grounds and motives for the challenge. If the challenged arbitrator, whose challenge is pending, within 30 days after submission of a written statement of challenge does not announce his/her withdrawal from the position or if the other party does not agree to the challenge, within 30 days after expiration of the initial 30-day term the Arbitral Tribunal shall decide on the challenge of the arbitrator. If the Arbitral Tribunal denies the challenge to the arbitrator, within 30 days after the notice of the decision rejecting the challenge was served to him/her, the challenging party may file a claim challenging the arbitrator in court (Amended on 28.10.2010).
14.6. In an arbitration with a sole arbitrator, within 30 days from the appointment of the arbitrator, or after one of the circumstances giving reason for a challenge to an arbitrator becomes known to him/her, the party is entitled to submit the claim to the court challenging the arbitrator. (Amended on 28.10.2010).
14.7. If the arbitral tribunal hears the case and a challenge is declared against one of the arbitrators who does not refuse his/her authority or the other party does not agree with the challenge, the remaining arbitrators shall decide the matter of challenge.
14.8. If the challenge is declared against the chairman of the Arbitration Institute who only reviews the case, he/she decides the matter of challenge.
14.9. If the challenge is declared against an arbitrator who is not the chairman of the Arbitration Institute but who reviews a case solely, the matter of challenge is decided by the chairman of the Arbitration Institute.
Article 15. Resignation of arbitrators (Amended on 18.01.2010)
15.1. If an arbitrator is unable to fulfill his/her obligations he/she may be resign under his/her request or under a
party’s request by the Arbitration Institute or by the parties’ agreement.
15.2. The Arbitration Institute renders a decision regarding an arbitrator’s resignation upon his/her request only in cases when valid reasons are present.
15.3. A party is not entitled to unilaterally replace the arbitrator appointed by him/her (Added on 18.01.2010).
15.4. If the arbitrator becomes unable to perform his/her obligations or becomes inactive for any other reason, his/her authority terminates based on his/her request to withdraw from the position, or based on the parties’ agreement on termination of authority. In cases when the parties cannot reach an agreement, within 30 days after submission of a request to terminate the authority of an arbitrator, one party may file a claim in court seeking termination of the authority of the arbitrator. On these matters, a court shall render its judgment within 14 days after submission of an application. This judgment shall be final and without appeal (Added on 28.10.2010).
15.5. If an arbitrator resigns or if a party agrees to termination of the authority of an arbitrator, it does not imply the existence of any ground provided for by paragraph 2 of this article, or the existence and acceptance of the grounds for challenge. (Added on 18.01.2010).
15.6. In cases when the authority of an arbitrator is terminated, a substitute arbitrator shall be appointed in compliance with the rules applicable to the appointment of the previous arbitrator (Added on 18.01.2010).
Section III Notice and summons Article 16. Notifications of parties and representatives
16.1. A party or its representative shall be notified by an arbitral summons of the date and location of a hearing or of the performance of individual procedural actions. The summons shall be deemed served on a party or its representative if it has been served on either of them or on the entities under Article 20.1 of these Rules. The representative shall be obliged to notify the party of receipt of the summons. Summons is also used for summoning witnesses, experts, specialists and interpreters to the Arbitration Institute.
16.2. Summons shall be served on the parties or their representatives in such a way as to give them reasonable time to prepare the case and to appear in the Arbitration Institute on time.
16.3. The parties, their representatives, and witnesses, experts, specialists and interpreters may be summoned by phone, fax and other technical means of communication. When using technical means of communication for summons, the details specified in Article 18.1 of these Rules shall be indicated and a certificate of service shall also be drawn up and enclosed with the case file. An appropriate Arbitration Institute officer shall draw up the certificate of service.
Article 17. Results of the failure to serve
17.1 Summons shall be served on the addressee based on the principal address (actual location), alternative address, workplace or other address known to the Arbitration Institute.
17.2 If a summons cannot be served on the plaintiff at the address indicated although provisions of Article 19.2 of these Rules have been complied with, the summons shall be deemed served. This rule shall apply to a defendant if the summons is sent to the address indicated in his/her reply (response).
17.3. If the address of the defendant indicated by the plaintiff is correct, but the summons could not be served on the defendant under Article 19.2 of these Rules, the Arbitration Institute shall act in compliance with the provisions of Article 24 of these Rules.
17.4. (Cancelled on 17.02.2016).
17.5. (Cancelled on 17.02.2016).
17.6. (Cancelled on 17.02.2016).
Article 18. Content of the Arbitral Summons 18.1. Arbitral summons shall contain:
a) The full name and exact address of the Arbitration Institute;
b) Reference to the time and place of appearance; if the summons is sent to a representative, also a reference to the obligation of the representative to notify the party, which he/she represents;
c) The title of the case with respect to which the person is summoned, and reference to the subject matter of the dispute;
d) The identity of the person to be summoned to the Arbitration Institute and the status under which he/she is summoned;
e) A proposal to the parties to provide all the evidence available to them;
f) Reference to the obligation of the person who accepts the summons in the absence of the addressee to hand over the summons to the addressee as soon as possible; and
g) Reference to the consequences of failure to appear and to the obligation to notify the Arbitration Institute Arbitration Institute about the reasons for failure to appear.
18.2. Together with the summons, the Arbitration Institute shall send to the defendant the arbitration claim form and copies of the supporting documents. Together with the summons, the Arbitration Institute shall send to the claimant a copy of the defendant's written statement, if such statement has been received in Arbitration Institute by the time of sending the summons. Copies of all written documents submitted to the Arbitration Institute may be sent to the parties before or after sending the summons.
Article 19. Sending Arbitral Summons
19.1 Summons shall be sent using technical means specified in Article 16.3 of these Rules by mail or courier. The Arbitration Institute shall determine the method of notification and the address where summons are to be sent and the Arbitration Institute may send summons in any order. The Arbitration Institute may also serve summons on a person in a court building.
19.2. If summons could not be served on the addressee at the time when they were first sent, the summons shall be sent again to the person at least once to the same address or to a different address known to the Arbitration Institute.
19.3. Service of summons by technical means shall be confirmed when: a) Using a telephone—by a certificate of service by technical means; or
b) Using an email or fax--by confirmation received by the respective technical means and/or by a certificate of service by technical means.
19.4. When a person is summoned by a telegram, service of the summons shall be confirmed by a notice confirming receipt of the telegram.
19.5. The time of service of summons on the addressee shall be marked on the second copy of the summons, which shall be returned to the Arbitration Institute. When using technical means, the time of service of summons shall be marked in the certificate stipulated by Article 19.3 of these Rules.
19.6. In order to deliver summons in a timely manner, the party may ensure the delivery of the summons through a courier at his/her own expense, based on a written application to the Arbitration Institute. A person mandated by the Arbitration Institute to deliver the summons shall be obliged to return to the Arbitration Institute the second copy of the summons signed by the addressee.
19.7. Summons sent to a citizen by mail or a courier shall be delivered in person. Summons sent to a citizen's workplace or to a legal entity shall be delivered to its secretariat or equivalent structural unit or person, or in its absence, to a duly authorized person of the entity who will deliver the summons to the addressee. Delivery of summons under this paragraph shall be confirmed by the signature of the addressee on the second copy of the summons.
Article 20. Notification in the absence of the addressee
20.1. If a person delivering the summons failed to meet the addressee of the summons at the address indicated by the party, he/she shall hand over the summons to any adult family member living with the addressee, and if the summons is delivered according to the workplace to the administration of the workplace under Article 19.7 of these Rules, except when they participate in the hearing as opposite parties. On the second copy of the summons the recipient of the summons shall be obliged to put his/her name and surname, relation to the addressee, and the position held. The recipient of the summons shall also be obliged to immediately deliver the summons to the addressee. Delivery of the summons to the person specified in this paragraph shall be considered service of the summons on the addressee, which shall be confirmed by the recipient’s signature on the second copy of the summons.
20.2. If the addressee is absent, the person delivering the summons shall indicate on the second copy of the summons the location of the addressee and the time of his/her expected return.
Article 21. Refusal to accept the Arbitral Summon
21.1. If the addressee or the person under Article 20.1 of this arbitration rule refuses to accept the summons, except as determined by the article 21.2., the person delivering the summons shall record the refusal on the summons, which shall be returned to the Arbitration Institute. In this case, the summons shall be deemed served on the addressee and the Arbitration Institute may hear the case.
21.2. If the person under Article 20.1 of these Rules refuses to accept the summons, the summons shall not be deemed served on the defendant, if the summons is sent to him/her for the first time, except when the summons has been sent to the address indicated by the defendant in its reply.
Article 22. Change of address during the arbitral proceedings
The parties and their representatives shall be obliged to notify the Arbitration Institute of a change of address during the proceedings. In the absence of such notification, summons shall be sent to the last address known to the Arbitration Institute, and shall be deemed served, even if the addressee no longer lives at that address.
Article 23. Delivery of arbitral summons to the joined parties
23.1. If one of the joined parties has been tasked with pursuing proceedings, the summons shall be served on him/her. He/she shall be obliged to notify the other joined parties. Service of the summons on the party tasked with pursuing the proceedings shall mean that the summons has been served on all the joined parties.
23.2. If the number of plaintiffs and opposite parties to a case exceeds 10 persons, and if the circumstances specified in the first paragraph of this article do not exist, the summons shall be sent to the first three signatories on the claim (appeal, response). Service of the summons on one of them shall mean that the summons has been served on all the parties on his/her side.
Article 231. Delivery of arbitral summons using technical means
231.1. The arbitrator is entitled to serve summons on the defendant regarding the claim against him/her, date and time of a hearing by technical means of communication. When using technical means of communication, recording should be carried out in accordance with the legislation.
231.2. When serving a summons using technical means, a certificate of service is produced in writing and is signed by a secretary. In such cases the Arbitration Institute is not obliged additionally to serve the summons on the addressee.
231.3. When serving summons on the defendant regarding the claim against him/her, the Arbitration Institute offers the defendant to appear at the actual address of the Arbitration Institute and deliver the claim and annexes in person. The defendant is entitled to refuse delivery of the claim and annexes in person at the actual address of the Arbitration Institute only upon providing valid reasons.
231.4. When serving a summons by using technical means the Arbitration Institute should inform the addressee that the communication is recorded (Amended 17.01.2016).
Article 24. Public Notice (Amended on 18.01.2010)
24.1. If not otherwise agreed by the parties, the written notice shall be deemed as received if it was served in person or at the legal address, residential address or address of the last working place. If it is impossible to determine such place, the written notice is deemed received if it is sent to the known last legal address of the addressee, or residential address or working place with an insured post or other means which confirm the sending and delivering attempts (Added on 18.01.2010).
24.2. If the location of a party is unknown or it is impossible to serve summons in any other way, the Arbitration Institute may, by its resolution, approve service by publication. Publishing in the newspaper widely circulated in the administrative territorial unit where the party resides carries out public notification.
24.3. Provisions stipulated in Article 24.2 of these Rules include the impossibility of serving case materials, arbitration resolutions, arbitration awards or other documents which are mandatory to be delivered to the party under these Rules (Added on 18.01.2010).
24.4. The party may ensure the delivery of summons through other means of public notification upon the order of the Arbitration Institute.
24.5. In cases stipulated by Articles 24.2 and 24.3 summons are deemed to be served on the party on the seventh day after the summons are published in the newspaper.
24.6. If a decision is rendered against a respondent who had not been served a summons and it had been published in the newspaper, the decision will be served in the same way (Amended on 17.02.2016).
Section IV Arbitration proceedings
Article 25. Commencing of arbitral proceedings. Request for arbitration (Amended on 18.01.2010)
25.1. The basis of arbitral proceedings is the submission of a request for arbitration by one of the parties of an arbitration agreement. Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for the dispute to be referred to arbitration is received by the respondent (Amended on 23.06.2010).
25.2. The request for arbitration must contain the following information: a) Full name of the Arbitration Institute;
b) Reference to the arbitration agreement under which the Arbitration Institute is empowered to discuss and resolve the dispute;
c) The name in full (name, surname, title), main address (actual residence), alternative address if relevant, address of working place, phone number, mobile phone number, e-mail and fax of the arbitration claimant, his/her representatives (if the request of the arbitration is submitted by the representative), defendants, witnesses and other persons which must be convened during the proceedings. The claimant and his/her representative can also note information about the contact person;
d) A brief description of the matter of the proceeding;
e) The amount of the arbitration claim; and
f) The claim of the arbitration claimant.
25.3. The request for arbitration may also include the following information: a) The legal grounds, which are the basis of the claimant’s claim;
b) The specific facts and circumstances which are the basis of claimant’s claim; and c) The evidence, which confirm circumstances, referred to by the claimant.
25.4. The request for arbitration must be enclosed with the following:
a) A document confirming payment of the arbitration fees;
b) If the arbitration claim is submitted by the representative, a power of attorney, which must be corresponded with these Rules;
c) If the claimant or defendant is a legal entity, an extract from the proper registry which must not be dated two weeks earlier from submission of the request for arbitration; and
d) The original arbitration agreement, or the original of the document which includes the arbitration agreement.
25.5. The request for arbitration must be signed by the party or his/her authorized representative (Amended on
18.01.2010).
25.6. If the request for arbitration does not include documents foreseen under article 25.2, or is not enclosed with the documents mentioned in article 25.4 or/and is not signed in compliance with article 25.5, the Arbitration Institute shall inform the claimant about it and grant him/her a relevant period for making the request compliant with these Rules. The granted period must not be less than two days.
25.7. If the claimant fails to comply with the obligation under the article 25.6 during the granted time period, the chairman of the Arbitration Institute is empowered to offer the claimant the opportunity to retract the arbitration claim.
25.8. If the claimant does not retract the arbitration claim during the time period granted by the chairman of the Arbitration Institute, the chairman makes a resolution on dismissal of the request and returns all relevant documents to the claimant.
25.9. If the claimant retracts the request according to article 25.7 of these Rules, 95% of the paid amount (arbitration fee) will be returned.
25.10. According to article 25.8 of these Rules, in case of dismissal of the arbitration claim, 80% of the paid amount (arbitration fee) will be returned.
25.11. The requirements set out in these Rules regarding arbitration claims also equally apply to counter-claims.
25.12. A counter-claim will be received and considered only if a counter-claim falls under the same arbitration agreement, which is referred to by the first claimant.
25.13. If the person who filled the counter-claim (defendant) refers not to the arbitration agreement which is mentioned in the arbitration claim but rather to the other arbitration agreement, according to which the authority to resolve the dispute is mentioned in the request for arbitration, in this case arbitration will allow the counter-claim and resolve both of them together, if it considers that the dispute between the parties will be resolved promptly, at limited cost and objectively.
25.14. Arbitration makes only one common award on the issues raised in the request for arbitration and the counter- claim.
25.15. If any party fails to appear before the arbitration or/and does not represent his/her position and evidence and does not provide valid reason, arbitration may continue discussing the case and make an award according to the evidence that is already available, if something else is not determined by the parties (Added on 18.01.2010).
25.16. In case of legal succession, the successor becomes a party of the arbitration agreement, if the parties do not determine their rights and obligations otherwise. (Added on 18.01.2010).
25.17. Death or liquidation of one of the parties does not lead to abolishment of the arbitration agreement or changing of the appointed arbitrator, unless otherwise agreed by the parties (Added on 18.01.2010).
Article 26. Interim measures (Edited on 17.02.2016)
26.1. At any time prior to the issuance of the award by which the dispute is finally decided, parties can file a motion
for granting interim measures if it is not contrary to the arbitration agreement.
26.2. According to the motion of the party, arbitration can order a party to:
a) Maintain or restore the status quo pending determination of the dispute;
b) Take action that would prevent, or refrain from taking action that is likely to cause, current or imminent harm or prejudice to the arbitral process itself;
c) Provide a means of preserving assets out of which a subsequent award may be satisfied; and
d) Preserve evidence that may be relevant and material to the resolution of the dispute.
26.3 The party requesting an interim measure under article 26.2 shall satisfy the Arbitral Tribunal that:
a) the non-use of arrangements/security/interim measures may cause damage, avoidance of which is impossible, with another party having the obligation of compensation for that damage;
b) Harm not adequately reparable by an award of damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result for the party against whom the measure is directed;
c) There is a reasonable possibility that the requesting party will succeed on the merits of the claim. The determination on this possibility shall not affect the discretion of the Arbitral Tribunal in making any subsequent determination.
26.4. With regard to a request for an interim measure under article 26.2 (d), the requirements in paragraphs (a-c) of the article 26.3 shall apply only to the extent the Arbitral Tribunal considers appropriate.
26.5. The Arbitral Tribunal may require the party requesting an interim measure to provide appropriate security in connection with the measure.
26.6. The party requesting an interim measure or applying for a preliminary order shall be liable for any costs and/or damages caused by the measure or the order to any party if the Arbitral Tribunal later determines that, in the circumstances, the measure or the order should not have been granted. The Arbitral Tribunal may award such costs and damages at any point during the proceedings.
26.7. The Arbitral Tribunal has the authority, if it considers necessary, to change, abate or abolish arrangements for providing arbitration action according to the request of a party or in special cases, after preliminary notification of all parties, by their own initiative.
26.8. The Arbitral Tribunal may order the party to disclose such information immediately, which is connected to significant changes of such circumstances, which are the basis for requesting and using such interim measures.
26.9. Enforcement of the order mentioned in this article will be done according to determined rules under the Georgian Law on Arbitration.
Article 27. (Cancelled on 18.01.2010) Article 28. (Cancelled on 18.01.2010)
Article 29. (Cancelled on 18.01.2010)
Article 30. (Cancelled on 18.01.2010)
Article 31. (Cancelled on 18.01.2010)
Article 32. Answer to the request for arbitration (Amended on 28.10.2010)
32.1. The Chairman of the Arbitration Institute is obliged to send a request for arbitration with enclosed materials to the defendant immediately and grant him/her adequate time for the presentation of his/her answer; the granted period must be not less than five days.
32.2. The answer to the request for arbitration shall include the full name of the Arbitration Institute. The defendant must also notify of admission of the arbitration claim. If the defendant gives partial admission of the arbitration claim, he/she must concretely designate in the answer which part of the claim is being admitted. The defendant can present evidence for the confirmation of the circumstances referred to in the answer. He/she can also use all opportunities, which he/she is granted under these Rules.
32.3. the answer to the request for arbitration must be signed according the article 25.5
(Amended on 18.10.2010).
32.4. If the answer to the request for arbitration is signed by the representative of the defendant, or the defendant is a legal entity, accordingly use article 25.4 points “b” and “c”.
32.5. If the answer to the request for arbitration does not apply articles 32.2; 32.3 and 32.4, the Chairman of the Arbitration Institute will inform the defendant and offer him/her to remedy the omissions before the hearing, or if the parties agreed on proceedings without a hearing, during the period granted by the Arbitration Institute.
32.6. If the defendant has not signed the answer to the request for arbitration in spite of the notice referred to in article 32.5, or does not present power of attorney presented by an authorized person or other documents, arbitration will explain to the parties/representatives in writing that the proceedings continue and final award will be made on the basis of the introduced proof, without foreseeing the answer and attached/supporting documents. (Amended on 28.10.2010).
Article 33. Competence of competence (New edition was formed on 18.01.2010)
33.1. Arbitration is empowered to make a decision about its competence, including the existence and authenticity of the arbitration agreement. For this, the arbitration agreement which represents or was considered part of another contract is treated as an independent agreement between parties, which does not depend on another contract. If arbitration decides that such contract does not exist or has no juridical validity, the arbitration agreement stays in force.
33.2. Any statement on competence of the arbitration may be made prior to delivery of the answer. Taking part in the appointment of arbitrators does not deprive the parties of the right to make such a statement.
33.3. The statement on competence of the arbitration must be made no later than seven days after the party becomes aware of the relevant circumstances.
33.4. The statement on the competence of the arbitration may be made after the period granted according to article 33.3, if the arbitration considers that expiration to be valid.
33.5. If the Arbitral Tribunal decides that it has competence, within thirty days after receiving the notice of such decision, any party may appeal the decision in court. Thecourt shall render a well-grounded judgment on the competence of the Arbitral Tribunal within 14 days after receipt of the application. This judgment shall be final and without appeal. Before the court makes the judgment, the Arbitral Tribunal may commence or continue the arbitral proceedings and make an award.
Article 34. Certain issues of oral hearings (Amended on 18.01.2010)
34.1. Arbitration Institute is obliged to notify the parties of the time and place of each hearing in writing two days
prior to commencement of the hearing, if the parties have not agreed otherwise (Amended on 18.01.2010).
34.2. The Arbitration Institute is obliged to send copies of all the applications, documents, requests or other information, introduced to the arbitration by one of the parties, to the other party within two days, unless the parties agree otherwise.
34.3. Arbitration proceedings conduct on the basis of equality of parties.
34.4. (Cancelled on 18.01.2010)
34.5. (Cancelled on 18.01.2010)
34.6 A participant in the arbitration proceedings may be any competent person. A party has the right to be represented by a lawyer during the arbitration proceedings. The authority of a physical person’s representative is confirmed by power of attorney approved by a notary. The authorized person must sign power of attorney of the representative of the legal entity. If the legal entity has a seal, the seal must be displayed with signature as well.
Article 35. Evidence, estimation and exploration of evidence (Amended on 18.01.2010)
35.1. each party must prove the circumstances which are the basis of his/her claims and counter-claims.
35.2. Proof of these circumstances may be provided with the explanation of the parties, testimonies of witnesses, written or physical evidence and expert conclusions.
35.3 Circumstances of the cases, which must be proven by the certain types of evidences, cannot be proven by other types of evidence. No evidence has predetermined power. Arbitration assesses the evidence according to his/her belief, which must be based on its comprehensive and objective examination, based upon which the decision is made on existence or non-existence of important/main circumstances. Opinions, which are the basis of the arbitrator’s belief, must be reflected in the award.
35.4. Arbitration can voluntarily interrogate witnesses and offer to present evidence to the party .
35.5. The party requesting the interrogation of witnesses is obliged to maintain attendance of the witness at the hearing. If the party cannot provide attendance of the witness, arbitration is empowered but not obliged to use power connected to the interrogating witness, granted by the Law of Georgia on Arbitration (Amended on 18.01.2010).
35.6. A party can present expert conclusions to prove the referred to circumstances.
35.7. Arbitration is obliged to appoint an expert, if so requested by the parties. Arbitration is empowered to terminate arbitration proceedings on the basis of the parties’ joint request until presentation of the expert conclusion.
35.8. If only one party requests interrogation of a witness, arbitration will not satisfy the motion if it considers that the party can present an expert conclusion with the request for arbitration.
35.9. If the circumstance which is the basis for the parties’ motion about the appointment of the expert appears after filing of the claim or counter-claim, arbitration shall grant the party a time period for presentation of the expert conclusion. If the expert does not present the conclusion during the granted period, it will not obstruct the arbitration proceedings. In this case, arbitration will make a decision/award based on the evidence existing in the case.
35.10. In cases of exceptional circumstances, arbitration may appoint expertise by its own initiative. In this case, arbitration will terminate the arbitration proceedings until presentation of the expert conclusion.
35.11. In case of existence of an arbitration decision, the party is obliged to introduce experts to any information, object or document that is connected to the case.
35.12. An expert conclusion is not binding on the arbitration. The arbitration assesses it according to its interpretation of the evidence.
35.13. A party may offer the arbitration specialists to participate in the exploration of case circumstances. The party, which made this motion, is obliged to maintain attendance of the specialist at the hearing. Nonattendance of the specialist does not obstruct the arbitration proceedings. After listening to the parties’ opinions, the arbitration has the right to invite specialists by its own initiative.
35.14. A specialist invited by a party, as well as one invited at the arbitration’s initiative is obliged to sign the declaration about non-disclosure of information, which was introduced during the proceedings. This obligation extends to the expert as well.
35.15. In cases of abolishment of the obligation mentioned in article 35.14 of these Rules, experts and specialists are obliged to reimburse the parties damage which comes as a result of disclosure of information connected to the case.
35.16. The arbitration is empowered but not obliged to use power granted under Georgian law about the arbitration, to determine issues connected to the evidence (Amended on 18.01.2010).
Article 36. Oral hearings (Amended on 18.01.2010)
36.1. If the defendant has presented an answer to the request for arbitration, which is in accordance with these Rules, the answer and notice paper with instructions of the time and place of the hearing should be immediately sent to the claimant. The relevant notice is sent to the defendant and other persons whose participation in the proceeding is expedient, in the arbitration’s opinion (New edition was formed on 17.02.2016).
36.2. (Cancelled on 18.01.2010)
36.3. During the hearing, competition between the parties is led by the chairman of the arbitration tribunal, unless otherwise stipulated by the law, arbitration agreement or rules of the arbitration. When sole arbitrator hears a case, he/she has the same powers as the chairman of the arbitration tribunal.
36.4. The arbitrator, as mentioned in article 36.3, opens and announces the closing of the hearing, gives the parties time for their opinions, determine the sequence of the claimants’, defendants’, witnesses’ and experts’ speeches, provides full, thorough and objective study of the evidence and gives parties equal opportunity to express their opinions about the evidence or circumstances which are important for the case. Each party’s opinion, if it is so mentioned in the protocol, must be assessed. In the event of examination of an arbitration dispute without oral
hearings, the arbitration will make a decision/award on the basis of the arbitration claim, counter-claim and the parties’ written submission, also on the basis of the evidence existent in the case.
36.5. After examining of the evidence and hearing the parties’ explanations, each party can apply with the final/conclusive speech to the arbitration. The final/conclusive speech is by the respondent.
36.6. After hearing the parties’ final speeches, the arbitration announces the discussion closed and makes an award.
Section IV1. Mediation in Arbitration Proceedings (Added on 01.07.2016) Article 361. The essence of mediation in the arbitration proceedings
361.1. Parties may agree on mediation before the substantial determination of the dispute by the Arbitral Tribunal in accordance with the requirements of these Rules. For the purposes of these Rules, mediation means to facilitate the negotiation between the parties to resolve the dispute through the mediator (professional negotiator) and reach an agreement from the moment of submitting the application to the moment of starting the substantial determination by the arbitral tribunal.
Article 362. Mediation procedure and time limits of mediation in arbitration
362.1. If there is an agreement as mentioned in Article 361.1, the arbitrator reviewing the dispute after undertaking to review the claim appoints a mediator by an order and this order is sent to the parties with case materials.
362.2. The mediator appoints the date of a mediation meeting within two days after expiring the term of submission of the statement of the defense, and the parties are promptly informed of it.
362.3. Mediation is deemed to be started from the day the parties receive information about the date of the mediation meeting. Parties have 15 days to reach agreement.
362.4. Mediation is conducted in accordance with the principles of confidentiality, equality of the parties, parties’ autonomy to make decisions regarding the agreement and avoidance of conflict of interest.
362.5. In case of reaching an agreement resulting from mediation, the act of settlement is approved by the arbitrator reviewing the case in compliance with the requirements of the Law of Georgia on Arbitration.
362.6. If the parties don’t reach an agreement by the time specified in Article 362.3 of these Rules, a mediator shall provide information in writing about it to the arbitrator reviewing the respective case. This is the ground for the arbitrator starting substantial determination of the dispute. In this regard, the Arbitral Tribunal renders the order which determines the period of time for the claimant to cover the arbitration fee stipulated by Article 2.1 of Appendix #1 of these Rules.
362.7. In case of refusing mediation by a party, the Arbitral Tribunal continues to review the dispute under the respective regulations stipulated by these Rules. In this regard the Arbitral Tribunal renders an order which determines the period of time for the claimant to cover the arbitration fee stipulated by Article 2.1. of Appendix #1 of these Rules.
Section IV2. Documents Only Arbitration (Added on 20.05.2016) Article 363. Documents only arbitration proceedings
363.1. The Arbitral Tribunal hears the case and takes a decision without an oral hearing in accordance with the documentary evidence presented by the parties, if the parties agree on it in a special form (Documents only arbitration) and the value of the dispute does not exceed GEL 10 000.
363.2. Within three days after accepting to hear the case, the claim and enclosed documents shall be sent to the defendant and he/she shall submit a statement of the defense and evidence within five to 10 days.
363.3. The Arbitral Tribunal shall send the statement of the defense and enclosed evidence to the claimant within three days after receiving them from the defendant and suggest the claimant to submit the position on the statement of the defense within five working days.
363.4. The Arbitral Tribunal shall hear the case and make the grounded award within 10 days after the time limit of submission of the statement of the defense.
363.5. If the claim and enclosed evidence is not served on the defendant and its reason is an incomplete address or the fact that the defendant no longer lives at that address, the Arbitral Tribunal shall determine the time period for the claimant (no longer than three days) to submit the alternative address of the defendant (in case of the existence of such address). If the claimant does not know the alternative address of the defendant or at the alternative address it is impossible to deliver the documents to the defendant, the Arbitral Tribunal sends the claim to the same address and at the same time carries out public notification. If the statement of the defense is not submitted within one week after publishing the notice, the Arbitral Tribunal shall render the grounded award within 10 days after expiration of the term of the notification.
Section V. Arbitration Award Article 37. The rule of making the award (Amended on 28.10.2010)
37.1. If the parties do not state the special period of time to make an award, such award shall be made within 90 days after commencement of the arbitration proceedings, unless otherwise provided by the arbitration agreement (Amended on 28.10.2010).
37.11. If there is an absolute necessity of it and it complies with the interest of the arbitration hearing, the Arbitral Tribunal is entitled to prolong the agreed term of the arbitration proceedings based on its own initiative which shall not be longer than the period of time stated by Article 37.1 of these Rules (Amended on 17.02.2016).
37.2. If the arbitration award is not made within the stipulated period of time the Arbitral Tribunal shall be dismissed if the parties have not agreed on prolongation of the term of the arbitration proceedings. Prolongation is allowed only once and for no longer than four months (Amended on 18.01.2010).
37.3. If the parties have not agreed on prolongation of the term of rendering an arbitral award according to the arbitration agreement, after dismissal of the Arbitral Tribunal, a new composition of the Arbitral Tribunal is formed under the regulations of these Rules. If the reformed Arbitral Tribunal do not render an arbitral award within three months after completing the formation, the arbitration agreement shall be deemed set aside. The Arbitration Institute is not obliged to resolve the dispute if the parties conclude the new arbitration agreement and still demand the arbitration proceedings (Amended on 28.10.2010).
37.4. An Arbitral Tribunal, which consists of more than one member, renders a decision by a majority of votes.
37.5. An arbitrator is not entitled to refrain from rendering a decision.
37.6. An arbitration award shall be made in written form and shall contain:
a) Date and place of rendering an award and composition of an arbitral tribunal;
b) Arbitration agreement under which the Arbitral Tribunal was acting;
c) Parties and others who participated in the arbitration proceedings;
d) Subject matter of the dispute;
e) Motivation with the opinions of the Arbitral Tribunal as grounds of an award unless the arbitration agreement directly excludes composing such motivation;
f) An arbitral order; and
g) Cancelled on 18.01.2010.
37.7. An arbitration award shall be signed by all arbitrators. If any arbitrator refuses to sign the arbitration award, there shall be a notice in the award regarding the refusal to sign.
37.8. Cancelled on 28.10.2010.
37.9. One exemplar of the arbitration award shall be delivered to each party (Amended on 18.01.2010).
37.10. An arbitration award shall be binding for the parties. An arbitral award shall not contain any obligation of third parties.
Article 38. Allocation of the costs between the parties
Unless otherwise agreed by the parties, an Arbitral Tribunal shall take a decision regarding the allocation of the arbitration costs between parties.
Article 39. Correction and interpretation of the award (Amended on 28.10.2010)
39.1. Each party may request the Arbitral Tribunal to give an interpretation of a specific part of the arbitration agreement to clarify the content of the arbitral award. Within 30 days after requesting the clarification of the content of the arbitral award the Arbitral Tribunal shall give the interpretation or render an order on refusing to give an interpretation. The interpretation of an arbitral award is a component part of this award.
39.2. Each party may request the Arbitral Tribunal to correct in the award any errors in calculation or any clerical or typographical errors within 30 days after serving the award. If the Arbitral Tribunal considers the request justified, the corrected version of the award shall be served on the parties. Refusal to correct the award by the Arbitral Tribunal must be respectively grounded (Amended on 28.10.2010).
39.3. An Arbitral Tribunal is authorized to carry out any of these actions on its own initiative (Added on 17.02.2016).
Article 40. Enforceability of the Award (Amended on 18.01.2010)
An arbitration award shall be enforced under the regulations of the Law of Georgia on Arbitration.
Section VI. Termination of the Proceedings without Making an Award Article 41. The grounds for termination of the proceedings without making an award
The arbitration proceedings shall be terminated without rendering an arbitration award if:
a) In accordance with the requirements of these Rules the Arbitral Tribunal refuses the arbitration proceedings; b) In accordance with the requirements of these Rules the arbitration claim is left without being considered;
c) In accordance with the requirements of these Rules the arbitration proceedings are cancelled; or
d) In accordance with the requirements of these Rules the claimant takes aside the arbitration claim.
Article 42. The refusal of the Arbitration Institute to commence arbitration proceedings
42.1. An Arbitral Tribunal shall refuse commencement of the arbitration proceedings if:
a) The dispute which is to be resolved according to the arbitration agreement cannot be the subject of arbitration proceedings; or
b) The circumstances connected to the case make a ground to presume that reviewing the case may affect negatively the reputation of the Arbitration Institute and the arbitrators (e.g. if there is an ongoing criminal proceeding which is not completed and is related to the parties of the arbitration agreement, etc.).
42.2. An Arbitral Tribunal is authorized to refuse to hear the case under paragraph b) of Article 42.1 of these Rules at any stage of the proceedings. The Arbitral Tribunal is not obliged to give grounds for the refusal.
42.3. According to paragraph b) of Article 42.1 of these Rules, in case of refusing the arbitration proceedings, the claimant shall get back the arbitration fee completely regardless of on which stage was made the refusal of the arbitration proceedings.
42.4. According to paragraph a) of Article 42.1 of these Rules, in case of refusing the arbitration proceedings the claimant shall get back 90% of the arbitration fee.
Article 43. Termination of the proceedings (Amended on 28.10.2010)
43.1. If a party requests so or the Arbitral Tribunal finds it appropriate, the Arbitral Tribunal shall not undertake to
review the claim or terminate the arbitration proceedings if: a) The subject matter of the dispute does not exist;
b) There is a court decision or an arbitration award entered into force with the same subject matter, parties and grounds;
c) The Claimant waived the claim, unless the defendant is against the termination of the arbitration proceedings and the Arbitral Tribunal considers that the defendant has a legal interest to settle the dispute (Amended on 18.01.2010);
d) The parties settle the dispute;
e) Succession is inadmissible because of the nature of the dispute, when a party is a deceased individual or liquidated legal entity; or
f) In other cases stipulated by the rules of arbitration.
431.1. If there are preconditions stated in paragraphs (c) and (d) of Article 43.1., the Arbitral Tribunal is obliged to return 50% of the arbitration cost if the parties agree to it in writing.
431.2. If there are preconditions stated in paragraphs a), b), e) and f) of Article 43.1., the Arbitral Tribunal is obliged to return 70% of the arbitration fee (Amended on 17.02.2016).
43.2. If the arbitration proceedings are terminated in accordance with paragraph d) of Article 43.2., the Arbitral Tribunal approves the act of settlement unless the condition of the settlement is not against the law. The issue of allocation of the arbitration fee shall be resolved according to the agreement of the parties (Amended on 28.10.2010).
43.3. The Arbitral Tribunal is obliged to render an arbitration award on terminating the arbitration proceedings and approving the settlement act within three days after receiving the application for settlement.
43.4. (Cancelled on 28.10.2010)
43.5. After the termination of the arbitration proceedings, a request to the Arbitral Tribunal to resolve the dispute on the same case and on the same grounds is not allowed. In this case, the Arbitral Tribunal is obliged not to accept the submission of a claim and return 90% of the arbitration fee to the party.
Article 44. Dismissing the arbitral request without consideration
44.1. The Arbitral Tribunal shall dismiss the claim without consideration under the application of the party or on its own initiative if:
a) The claim is submitted by a legally incapable person;
b) The claim is submitted in the name of an interested party but by a person who does not have the authority to
participate in the arbitration proceedings;
c) There is an ongoing proceeding in the Arbitration Institute, other private Arbitral Tribunal or court on the same subject matter of the dispute between the same parties and on the same grounds;
d) The motion of the claimant is satisfied regarding taking aside the claim and enclosed documents; or
e) The claimant did not pay the arbitration fee according to Article 362.6 or Article 362.7 of these Rules.
44.2. If neither party attends the oral hearing, respectively notified about the appointment under the regulations of these Rules, the Arbitral Tribunal shall postpone the proceedings, notify the parties about the appointment once more and provide warning about the results of nonattendance. If despite notifying a second time to attend the hearing still neither party attends the hearing, the Arbitral Tribunal shall dismiss the claim without consideration. In this case the claimant shall get back 50% of the arbitration fee.
44.21. In case of dismissing the claim without consideration in accordance with paragraph e) of Article 44.1. of these Rules, the claimant shall not get back the arbitration fee.
44.3. Dismissing the claim without consideration does not deprive the claimant of the right to submit the claim again after precluding the grounds of dismissal.
Article 45. Withdrawal of the arbitral claim
45.1. The claimant has a right to withdraw the claim without refusing its demand. The withdrawal is allowed at any stage of the proceedings. After submitting the statement of the defense by the defendant, withdrawal is allowed only under the defendant’s acceptance. If the defendant does not accept withdrawal of the claim in writing the Arbitral Tribunal shall continue the proceedings and render the final decision.
45.2. Opinions expressed at the oral hearing on the revocation of the claim shall be brought in the record of the hearing and it is deemed to be a consent or rejection to revocation of the claim in writing.
45.3. In the case of this Article the Arbitral Tribunal is obliged to return 50% of the arbitration fee to the claimant (Added on 17.02.2016).
Section VII. Final Provisions Article 46. Entry into force of Rules (Amended on 18.01.2010)
46.1. The Arbitration Rules shall come into force after their approval by the minutes of the Arbitration Institute’s shareholders’ meeting/shareholders’ decision and publishing it in accordance with the requirements of the Georgian Law on Arbitration (Amended on 18.01.2010).
46.2. The termination or annulment of any provision of the Arbitration Rules shall not cause the termination or annulment of the entire Rules unless it is impossible to review and resolve the dispute under these Rules without its terminated or annulled part.
Article 461. Ethics
Tbilisi Arbitration Institute recognizes and joins the Code of Ethics of Georgian Arbitrators’ Association and the regulations of these codes shall completely extend to the arbitrators of Tbilisi Arbitration Institute.
Article 47. Costs
47.1. The arbitration costs consist of the arbitration fees, the expenses of representation and the expenses of obtaining evidence and presenting it in arbitration proceedings.
47.2. Arbitration fees has to be paid, for the following:
a) Submission of the claim;
b) Submission the application requesting the interim measures; and
c) Submission of the complaint appealing the order on the provisional measures.
47.3. The amount of the arbitration fee and the rule of paying is determined by Appendix #1 of these Rules, which is confirmed by the minutes of the shareholder’s meeting/decision of the shareholders of the Arbitration Institute and shall be an inseparable part of these Rules.
47.4. If the text of these Rules under the requirements of these Rules has to be sent to the party, Appendix #1 of these Rules shall be sent to the party as well.
Article 48. The results of setting aside an award and the refusal of recognition and enforcement (Added on 28.10.2010)
48.1. The setting aside of the arbitration award or refusing its recognition or enforcement shall not mean annulment of the arbitration agreement, based on which the arbitration award is rendered.
48.2. According to the court order/decision, the Arbitration Institute is authorized to renew the arbitration proceedings and render the new award.
48.3. While rendering the new award the Arbitration Institute is obliged to take into consideration and preclude the deficiencies which were grounds to set aside or dismiss the arbitration award.
48.4. In case of renewing the arbitration proceedings according to this article, keeping time for the arbitration proceedings agreed by the parties or stated by these Rules shall restart.
Annex I of the Arbitration Rules of Tbilisi Arbitration Institute LLC
Article 1. The legal force of the Appendix
1.1. The amount and the payment procedure of the arbitration fees set by Tbilisi Arbitration Institute LLC (hereinafter “Arbitration Institute”) for reviewing and resolving the dispute is stated by this Annex, which is an inseparable part of the Rules of the Arbitration Institute and is in force with it.
1.2 This Appendix is confirmed with the Arbitration Rules by the minutes of the shareholders’ meeting/shareholders’ decision of the Arbitration Institute.
1.3 If the text of the Arbitration Rules has to be sent to a party, the Appendix #1 shall be sent to the party as well.
Article 2. Amount of the arbitration fees (Amended on 19.10.2011) 2.1. The arbitration fees for the claim is determined as follows:
Amount of Dispute (GEL)
0-10 000 (without an oral hearing) 0-100 000
100 001-500 000 500 001 and more
Arbitration Fee (GEL)
GEL 220
2%,
But not less than GEL 250 1,8%
1.5%
But not more than GEL 9 000
2.2. If it is impossible or difficult to estimate the value of the claim, the arbitration fees will be GEL 3,000.
2.3. For the application requesting interim measures for the claim the arbitration fees will be GEL 150.
2.4. The arbitration fees for appealing the order of the Arbitral Tribunal on provisional measures will be GEL 150.
2.41. The arbitration fees for mediation in the arbitration proceedings is 1% of the amount of the dispute but not less than GEL 250. If it is impossible to settle the dispute as a result of mediation the arbitration fees shall be paid up to the amount set by paragraph 2.1 of this Appendix #1.
2.5. The arbitration fee paid by the party contains the taxes (including VAT) stipulated by Georgian legislation.
2.6. The clause stipulated by paragraph 2.5 of this Appendix shall be extended to all fees paid by the party since the foundation of Tbilisi Arbitration Institute LLC.
2.7. The clause stipulated in paragraph 2.5 of this Appendix shall be extended to all the payments made after this amendment.
Article 3. Paying and refunding the arbitration Fees
3.1. The arbitration fee shall be wire transfer to the account of the Arbitration Institute. The Arbitration Institute is obliged to provide the party with account details in the acceptable form.
3.2. If the arbitration fee paid by the party is refundable according to the Arbitration Rules, the Arbitration Institute is obliged to refund it in three banking days after taking the decision about refunding. This Arbitration Rules stipulates the refundable amount of the arbitration fee.
3.3. The arbitration fee is refunded by transferring money to the bank account of the party which is known to the Arbitration Institute, unless the party requests in writing to transfer money to another account and indicates the appropriate account details