GEORGIA Law and Practice Contributed by: Lasha Nodia, Giorgi Kekenadze and Ani Akophashvili, Nodia, Urumashvili and Partners
Furthermore, a party may challenge an arbitra - tor appointed by themselves only for reasons that become known to the party after the appointment of the arbitrator. The parties are authorised to agree on the procedure for challenging, arbitrators taking into account the provisions of the Law of Georgia on Arbitration. In the absence of such agreement, a party who intends to challenge an arbitrator must submit the statement of challenge to the arbitration within 15 days from the date on which the party became aware of the appoint - ment of the relevant arbitrator or of any circumstance specified by the Law of Georgia on Arbitration that may serve as a ground for challenge. If the arbitration does not satisfy the party’s application to challenge the arbitrator, the party challenging the arbitrator may apply to the court for the challenge of the arbitrator. The Law of Georgia on Arbitration also prescribes for the termination of the authority of an arbitrator and provides that a party is not entitled to unilater - ally replace the arbitrator it has appointed. Under the procedure, if the arbitrator becomes unable to perform their obligations or becomes inactive for any other rea - son, their authority terminates based on their request to withdraw from the position or based on the parties’ agreement on termination of authority. In cases where the parties cannot reach an agreement within 30 days after submission of a request to terminate the author - ity of an arbitrator, one party may file a claim in court seeking termination of the authority of the arbitrator. 4.5 Arbitrator Requirements The Law of Georgia on Arbitration upholds the fun - damental principle of impartiality and independence of arbitration. The law provides that, in the case of appointment of an arbitrator by a court or any other authority, the qualifications of the arbitrator – as well as the arbitrator’s independence and impartiality – are to be considered. As mentioned in 4.4 Challenge and Removal of Arbitrators , the law also provides any party with the right to challenge an arbitrator if there are circumstances that may create reasonable doubts about the independence or impartiality of the arbi - trator. In addition, arbitrators are under a continuing obligation to disclose at the time of their appointment or during the arbitral proceedings any circumstance
that may raise questions about their own impartiality or independence. Moreover, the Georgian Code of Ethics for Arbitrators establishes a set of regulations regarding the impar - tiality and independence of arbitrators. Particularly, the Georgian Code of Ethics for Arbitrators imposes on the arbitrator an obligation to uphold high stand - ards of conduct to ensure that the arbitral proceed - ings are held fairly and in good faith. However, the Georgian Code of Ethics for Arbitrators was formu - lated by the Georgian Association of Arbitrators, a non-governmental professional organisation estab - lished by arbitrators. As such, the Georgian Code of Ethics for Arbitrators does not constitute a legally binding instrument under national law and its applica - tion is limited to arbitral institutions that have formally adopted the code. Accordingly, arbitrators operating under the rules of such institutions are bound by the Georgian Code of Ethics for Arbitrators, which serves as a professional guideline governing their conduct throughout the arbitral proceedings. Furthermore, institutional rules also regulate the above-mentioned issues. By way of example, under the GIAC Arbitration Rules, all arbitrators must remain impartial and independent throughout the process. Prior to appointment, a prospective arbitrator must sign a confirmation of impartiality and independence. They must also disclose any facts or circumstances that would lead to reasonable doubts in this regard. The competence-competence principle, as outlined in Article 16 of the UNCITRAL Model Law, is mirrored in the Law of Georgia on Arbitration. As such, an arbitral tribunal may rule on a party’s challenge to the tribu - nal’s own jurisdiction. 5.2 Circumstances for Court Intervention Under the Law of Georgia on Arbitration, the court may only intervene if specifically provided for by the law, which only authorises court intervention within certain limits. Such intervention is permitted only in circumstances where: 5. Jurisdiction 5.1 Challenges to Jurisdiction
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