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Making amendments regarding the low on Arbitrage
Making amendments regarding the low on Arbitrage

The draft law, concerning the amendments regarding the low on Arbitrage and its related projects, which were discussed by the Committee of Legal Affairs at the first hearing, provides support for development of arbitrage institutes, as alternative dispute resolution mechanisms.

 

According to the legislative package, initiated by the government of Georgia, the tax amount on recognition and enforcement the Arbitral Decision, also discussing the complaint about annulling the Arbitral Decision is reduced and defined by the amount of 150 Laris (the same amount which is set on a lawsuit proceeding about non-property dispute), also, the amount of state tax on the issues where court involvement is required in arbitration proceedings, is reduced and defined by 50 Laris.

 

According to the First Deputy Minister of Justice, Aleksandre Baramidze, the law which is in force now, provide parties with right to apply for permanent arbitration institutions only, whereas, according to the "Model Law about International Commercial Arbitration" of UNCITRAL, the parties should also have the right to apply the ad hoc arbitration created for solving particular dispute.

 

Therefore, the corresponding amendment being made to the "Arbitration Law" gives parties the opportunity to apply for an (ad hoc) arbitration created for solving particular disputes. According to the law in force, if both of the parties of arbitration agreement are physical persons, the arbitration agreement must be signed by the parties' lawyers or the arbitration agreement must be notarized. According to the explanation of the presenter, there is no need for this kind of limitation - if the expression of the parties is true, the law should not require them to spend additional expenses to hire a lawyer or notary to verify the agreement. He also noted that according to the presented amendments, if both parties are physical persons, notarial attestation or lawyers' signatures are no longer required.

 

According to the statement of the First Deputy Minister of Justice, by the presented draft law, the Court of Appeal will decide upon the issue of the competence of the arbitration instead of the district (city) court. According to the valid edition of Georgian Law about "Arbitration", before filing arbitration dispute the party has not an opportunity to address the court for securing a claim. In certain cases, prior to the filing of arbitration dispute, the inability to take security measures may harm the party. According to the above mentioned, following this change, the Court will be authorized to secure the claim on the bases of bilateral appeal before lodgment of the claim. According to the presented legislative package, a note under the 332nd article of the Criminal Code is being established, according to which, the Georgian and foreign arbitration members will be not only subjects/persons with equal status of all kind of malfeasance, but only those defined by the 338th (bribe taking) and 339th (boodling) articles of the Georgian Criminal Law.