GEORGIA Law and Practice Contributed by: Lasha Nodia, Giorgi Kekenadze and Ani Akophashvili, Nodia, Urumashvili and Partners
Therefore, the court is not authorised by the Law of Georgia on Arbitration to stay proceedings of its own initiative, and the opposing party must challenge the jurisdiction of the court by referring to the arbitration agreement. Recently, several courts decisions have been issued, establishing that the court shall under - take prima facie of the arbitration agreement in such cases. However, in practice, the standard of review varies between different courts and depending on the subject matter. 5.6 Jurisdiction Over Third Parties The Law of Georgia on Arbitration does not allow an arbitral tribunal to assume jurisdiction over individu - als or entities that are neither parties to the arbitra - tion agreement nor signatories to the contract con - taining the arbitration clause (thereby either implicitly or explicitly consenting to becoming parties to the arbitration agreement). The Kutaisi Court of Appeal annulled a decision by an arbitral tribunal, as the decision affected a non-signatory to the arbitration agreement who was not involved in the arbitration proceedings. Subject to the consent of the parties and on their request to the tribunal, interim measures can be invoked before or during proceedings in arbitration in Georgia. The arbitral tribunal can order parties to: • maintain or restore the status quo before the final award is made; • take measures to prevent harm to the other party or to the arbitration process; • form a vehicle for safeguarding assets from which a future award can be satisfied; and • preserve and keep evidence that is material to the dispute and its resolution. 6. Preliminary and Interim Relief 6.1 Types of Relief An interim measure issued by an arbitral tribunal is binding but subject to an enforcement by the court ‒ specifically, a party must submit an order and request its enforcement by the court. During such proceed -
ings, the opposing party is notified and given the opportunity to challenge the enforcement by referring to the grounds of non-enforcement. However, in Georgia, most parties prefer to apply directly to the court for interim relief. For further details, see 6.2 Role of Courts . 6.2 Role of Courts In Georgia, unless otherwise stipulated in the arbi - tration agreement, any party can request the arbitral tribunal to grant interim measures before the com - mencement of arbitration proceedings or at any point during the proceedings prior to the issuance of the arbitral award. Additionally, Georgian legislation per - mits parties, as per their will, to apply directly to the relevant appellate court (instead of applying to the tribunal) and request the use of provisional measures even after the composition of the tribunal. Furthermore, in line with existing practice and the Civil Procedural Code of Georgia, a party may seek inter - im relief even before filing an arbitration claim under applicable arbitration rules. However, if a court grants such interim relief, the claimant has to file an arbi - tration claim within ten days and demonstrate to the court within said ten days that such claim has been filed; otherwise, the court will annul the decision on interim relief. As mentioned in 6.1 Types of Relief , in practice, par - ties mostly prefer to apply directly to the court for interim relief – taking into account the simplified and less time-consuming nature of obtaining such relief from courts. Under Georgian legislation, courts are obliged to issue an ex parte decision within 24 hours, which then is communicated to the opposing party, who can later challenge it. Moreover, Georgian courts may aid foreign-seated arbitrations as well. Even if the seat is abroad, pro - vided that it has a relevant connection to the jurisdic - tion of Georgia, a party may directly apply to the court and request use of interim relief. As for types of interim relief, Georgian courts may grant various types of preliminary or interim relief, including:
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