Arbitration Regulations
English working translation for review. In the event of any discrepancy, the official Georgian text prevails.
Chamber of Financial Arbitration LLC
of Chamber of Financial Arbitration LLC
Arbitration Rules
Chapter I. General Provisions
Article 1. Definition of Terms
Chapter II. General Principles of Arbitral Proceedings
Article 2. General Principles
Article 3. Principles of Arbitral Proceedings
Article 4. Application of the Rules and Applicable Law
Article 5. Place of Arbitration
Article 51. Language of Arbitral Proceedings
Article 6. Procedural Time Limits
Article 7. Confidentiality
Chapter III. Appointment, Challenge, and Termination of the Mandate of an Arbitrator
Article 8. Appointment of an Arbitrator
Article 9. Requirements for Arbitrators
Article 10. List of Arbitrators
Article 11. Challenge of an Arbitrator
Article 12. Termination of an Arbitrator's Mandate
Chapter IV. Notification and Service of Summons
Article 13. Notification and Service of Summons
Chapter V. Commencement of Arbitral Proceedings
Article 14. Statement of Claim in Arbitration
Article 15. Acceptance of the Statement of Claim
Article 16. Statement of Defence
Article 17. Counterclaim
Chapter VI. Consideration of the Case
Article 18. Jurisdiction of the Arbitral Tribunal
Article 19. General Rules for the Conduct of Arbitration
Article 20. Oral Hearing
Article 21. Consideration without an Oral Hearing
Article 22. Evidence
Article 23. Witness, Expert, and Specialist
Article 24. Interim Measures to Secure the Claim
Article 25. Suspension of Proceedings
Chapter VII. Arbitral Award
Article 26. Arbitral Award
Article 27. Correction and Interpretation of the Award and Additional Award
Chapter VIII. Conclusion of Arbitral Proceedings
Article 28. Termination of Proceedings
Article 29. Leaving the Claim without Consideration
Chapter IX. Arbitration Costs
Article 30. Arbitration Costs
Chapter X. Final Provisions
Article 31. Final Provisions
Chapter I. General Provisions
Article 1. Definitions
1.1. Unless otherwise provided by these Rules or the Law of Georgia on Arbitration, the terms used herein shall have the following meanings:
(a) Arbitral institution – Chamber of Financial Arbitration LLC, a permanent arbitral institution;
(b) Arbitral tribunal – a tribunal consisting of one or more arbitrators authorised to hear and resolve a dispute;
(c) Arbitrator – a natural person authorised to hear and resolve a dispute in accordance with these Rules and the Law of Georgia on Arbitration;
(d) Arbitral panel – an arbitral tribunal consisting of three arbitrators;
(e) Arbitration agreement – an agreement between the parties as defined by the Law of Georgia on Arbitration;
(f) Party – a person who is a party to an arbitration agreement and who may be represented in the arbitral proceedings by an authorised representative;
(g) Parties – the claimant and the respondent in arbitration;
(h) Arbitration claim – a claim submitted by a party to the arbitral institution that initiates arbitral proceedings;
(i) Arbitral proceedings – proceedings conducted in accordance with these Rules;
(j) Arbitral award – a final decision rendered by the arbitral tribunal to resolve the dispute on its merits;
(k) Order – a procedural decision rendered by the arbitral tribunal that does not resolve the dispute on its merits;
(l) Chairperson – the person authorised to manage Chamber of Financial Arbitration LLC or a person authorised by that person;
(m) Registry – the administrative unit of the arbitral institution responsible for case administration and document management;
(n) Arbitration fee – the amount prescribed by these Rules and the annex thereto, payable for the conduct of arbitral proceedings;
(o) Rules – the Arbitration Rules of Chamber of Financial Arbitration LLC.
Chapter II. General Principles of Arbitral Proceedings
Article 2. General Principles
2.1. Chamber of Financial Arbitration LLC shall hear private-law disputes arising from an arbitration agreement in accordance with the Law of Georgia on Arbitration, these Rules and the legislation of Georgia.
2.2. Arbitral proceedings shall be conducted on the basis of the parties’ agreement, these Rules and the applicable legislation. If the arbitration agreement provides for a procedural rule that differs from these Rules, the parties’ agreement shall prevail, except where it conflicts with mandatory provisions of the legislation of Georgia.
2.3. A party may participate in arbitral proceedings in person or through an authorised representative.
2.4. The arbitral tribunal shall resolve the dispute on the basis of the substantive law chosen by the parties or, in the absence of such an agreement, in accordance with the legislation of Georgia.
2.5. The arbitral tribunal shall resolve procedural matters not provided for in these Rules in accordance with the Law of Georgia on Arbitration, the legislation of Georgia and these Rules.
2.6. The filing of an action before a court seeking a declaration that the arbitration agreement is invalid or has ceased to have effect shall not in itself result in a stay of the arbitral proceedings, unless otherwise provided by law or a court decision.
2.7. If the arbitration agreement forms part of the main contract, the invalidity, termination or cessation of effect of the main contract shall not in itself render the arbitration agreement invalid or cause it to cease to have effect, unless otherwise provided by law.
Article 3. Fundamental Principles of Arbitral Proceedings
3.1. Arbitral proceedings shall commence upon the submission of an arbitration claim in accordance with the procedure established by these Rules.
3.2. Arbitral proceedings shall be conducted solely on the basis of a valid arbitration agreement.
3.3. The parties may freely exercise and dispose of their substantive and procedural rights. They may amend or withdraw a claim, admit a claim, enter into a settlement and take other procedural steps provided for by law and these Rules.
3.4. Arbitral proceedings shall be conducted in accordance with the principles of equality of the parties, adversarial proceedings, independence, impartiality and a fair hearing. Each party shall be afforded an equal opportunity to present its position, evidence, motions and observations.
3.5. For the purpose of a comprehensive, objective and efficient examination of the case, the arbitral tribunal may, in accordance with these Rules and the applicable legislation, take the procedural measures necessary for the examination of the case.
Article 4. Application of the Rules and Applicable Law
4.1. The version of these Rules in force at the time of commencement of the arbitral proceedings shall apply to those proceedings, unless otherwise agreed by the parties.
4.2. In considering and resolving a dispute, the arbitral tribunal shall be guided by the Law of Georgia on Arbitration, the legislation of Georgia, the arbitration agreement and these Rules.
4.3. If the legal relationship in dispute is not directly governed by an applicable rule of law, the arbitral tribunal shall apply statutory provisions by analogy and, where this is not possible, the general principles of law.
Article 5. Place of Arbitration
5.1. Unless otherwise provided in the arbitration agreement, the place of arbitration shall be deemed to be the location of the arbitral institution.
5.2. With the consent of the parties, the arbitral tribunal may conduct a session, an oral hearing or any other procedural act at another location or by means of remote communication, provided that the principles of equality of the parties and a fair hearing are observed.
Article 51. Language of the Arbitral Proceedings
5¹.1. The parties may agree on one or more languages of the arbitral proceedings.
5¹.2. In the absence of an agreement between the parties, the language of the arbitral proceedings shall be Georgian, unless the arbitral tribunal determines another language, taking into account the circumstances of the case, including the language of the contract, the positions of the parties, the evidence submitted and the nature of the dispute.
5¹.3. The arbitral tribunal may require a party to translate, in whole or in part, a document or other evidence submitted in a foreign language into Georgian or another designated language of the arbitral proceedings.
5¹.4. If the arbitral proceedings are conducted in more than one language, the arbitral tribunal may establish rules governing the language to be used for the submission of documents, translation, oral hearings and other communications within the arbitral proceedings.
5¹.5. The arbitral tribunal may determine which party shall arrange for the translation of a document or the services of an interpreter and how the related costs shall be allocated, unless the parties have agreed otherwise.
Article 6. Procedural Time Limits
6.1. A time limit prescribed by these Rules or by the arbitral tribunal shall begin to run on the day following the occurrence of the relevant event, unless otherwise provided by law or by agreement of the parties.
6.2. If the last day of a time limit falls on a public holiday or a non-working day, the time limit shall expire on the next working day.
Article 7. Confidentiality
7.1. Information, documents and case materials relating to the arbitral proceedings shall be confidential. Arbitrators, the parties, their representatives, experts, specialists, interpreters, employees of the arbitral institution and other participants in the proceedings shall maintain the confidentiality of information that becomes known to them.
7.2. Disclosure of confidential information shall be permitted only:
(a) with the written consent of the parties;
(b) in cases provided for by law;
(c) in connection with the recognition, enforcement or challenge of an arbitral award or any other legal procedure provided for by law.
Chapter III. Appointment, Challenge and Termination of the Mandate of an Arbitrator
Article 8. Appointment of an Arbitrator
8.1. Unless otherwise provided by agreement of the parties, the dispute shall be heard by a sole arbitrator appointed by the Chairperson of the arbitral institution.
8.2. Taking into account the complexity of the case, the nature of the dispute or other significant circumstances, as well as the agreement of the parties, the dispute may be heard by an arbitral panel consisting of three arbitrators.
8.3. If the dispute is heard by three arbitrators, each party shall appoint one arbitrator, and the arbitrators appointed by the parties shall select the chairperson of the arbitral panel by agreement. If a party fails to nominate an arbitrator within the prescribed time limit, or if the arbitrators appointed by the parties fail to agree on the selection of the chairperson of the arbitral panel, the relevant arbitrator or the chairperson of the arbitral panel shall be appointed by the Chairperson of Chamber of Financial Arbitration LLC in accordance with the procedure established by paragraph 8.4 of these Rules.
8.4. An arbitrator may be selected from among persons registered in the register of arbitrators of Chamber of Financial Arbitration LLC. A party may also nominate as an arbitrator a person who is not registered in the Chamber's register of arbitrators, provided that the person meets the requirements for arbitrators established by the legislation of Georgia and these Rules. In such a case, the Chamber shall verify the candidate's compliance with those requirements.
8.5. A representative may appoint an arbitrator on the basis of authority certified in accordance with the procedure established by law.
Article 9. Requirements for Arbitrators
9.1. A natural person with legal capacity who meets the requirements established by the Law of Georgia on Arbitration, these Rules and the agreement of the parties may be appointed as an arbitrator.
9.2. An arbitrator shall be independent, impartial and free from any circumstances that may give rise to objectively justified doubts as to the arbitrator's independence or impartiality.
9.3. Before assuming the mandate, a person appointed as an arbitrator shall confirm in writing their consent to the appointment and disclose all circumstances that may affect their independence and impartiality.
9.4. Throughout the arbitral proceedings, an arbitrator shall immediately inform the parties and the arbitral institution of any new circumstances that may constitute grounds for challenging the arbitrator.
Article 10. List of Arbitrators
10.1. The arbitral institution shall maintain and publish a list of recommended arbitrators.
10.2. A party may select an arbitrator either from that list or from among any other persons who meet the requirements established by the Law of Georgia on Arbitration, these Rules and the agreement of the parties.
Article 11. Challenge of an Arbitrator
11.1. A party shall have the right to challenge an arbitrator if there are grounds under the Law of Georgia on Arbitration or these Rules, or arising from other circumstances, that objectively give rise to doubts as to the arbitrator's independence or impartiality.
11.2. A person who is offered appointment as an arbitrator shall disclose in advance any circumstances that may give rise to doubts as to their independence or impartiality.
11.3. A challenge shall be submitted to the arbitral institution in writing within 15 days after receipt of information concerning the grounds for the challenge.
11.4. The challenge shall be decided in accordance with the procedure established by the Law of Georgia on Arbitration and these Rules.
Article 12. Termination of an Arbitrator's Mandate
12.1. An arbitrator's mandate shall terminate in the cases provided for by law, as well as upon the arbitrator's resignation, the upholding of a challenge to the arbitrator, or the arbitrator's inability to perform their duties.
12.2. Upon termination of an arbitrator's mandate, a new arbitrator shall be appointed in accordance with the same procedure used to appoint the arbitrator being replaced.
12.3. The replacement of an arbitrator shall not in itself require the arbitral proceedings to recommence, unless the arbitral tribunal decides otherwise, taking into account the circumstances of the case.
Chapter IV. Notification and Service of Summonses
Article 13. Notification and Service of Summonses
13.1. In communicating with the parties and other participants in the arbitral proceedings, the arbitral institution may use any means of communication permitted by law or these Rules, including: post, courier, email, telephone, fax, an electronic platform, or other technical means.
13.2. A written notification or summons shall be deemed served if it is delivered personally to the addressee or sent to a registered, actual, residential, business, or email address specified by the addressee or known to the arbitral institution, by a means that confirms dispatch, delivery, or attempted delivery.
13.3. The dispatch or delivery of a notification sent by electronic or other technical means shall be evidenced by confirmation obtained through the relevant technical means, an electronic record, or a formal record drawn up by the arbitral institution.
13.4. The arbitral institution shall independently determine the form of notification, the address to which it is sent, and the means of communication, and shall not be obliged to use every possible form of notification or to follow any sequence in their use.
13.5. If a notification cannot be delivered upon its initial dispatch, the arbitral institution may send it again to the same address or another address known to it, or by another means of communication.
13.6. If the addressee refuses to accept a notification, evades its receipt, or delivery cannot be effected for reasons attributable to the addressee, the notification shall be deemed served, provided that the relevant confirmation exists.
13.7. The parties and their representatives shall immediately notify the arbitral institution of any change in their contact details or address during the arbitral proceedings. In the absence of such notification, a notification sent to the last address or email address known to the arbitral institution shall be deemed duly served.
13.8. If a party's whereabouts are unknown or a notification cannot be served on that party by other means, the arbitral institution may issue an order for public notification. Public notification shall be effected by publication on the arbitral institution's official website and, where necessary, through another public information medium. In such a case, the notification shall be deemed served on the seventh day following publication.
13.9. A summons to attend an oral hearing or another procedural act shall contain:
(a) the name of the arbitral institution;
(b) the case number and the subject matter of the dispute;
(c) the identity and procedural status of the person summoned;
(d) the time and place of appearance or the details required for remote participation;
(e) the legal consequences of failure to appear.
Chapter V. Commencement of Arbitral Proceedings
Article 14. Statement of Claim in Arbitration
14.1. Arbitral proceedings shall commence upon the submission of a statement of claim to the arbitral institution.
14.2. The statement of claim shall be submitted in writing, in hard copy or electronic form.
14.3. The statement of claim shall contain:
(a) the identification and contact details of the parties and their representatives, if any;
(b) a reference to the arbitration agreement;
(c) the subject matter of the dispute, the relief sought, and the value of the claim, if it is capable of valuation;
(d) the factual and legal grounds for the claim;
(e) the evidence or a list thereof;
(f) the signature of the party or its authorised representative.
14.4. The statement of claim shall be accompanied by:
(a) a document confirming payment of the arbitration fee;
(b) a document confirming the representative's authority, if the claim is submitted by a representative;
(c) other documents on which the claimant relies to substantiate its claim.
14.5. The statement of claim and the accompanying documents shall be submitted in a form and in a number of copies sufficient to ensure their transmission to the other party.
Article 15. Acceptance of the Statement of Claim
15.1. The arbitral institution shall verify whether the statement of claim meets the requirements established by these Rules.
15.2. If the statement of claim does not meet the requirements established by these Rules, the arbitral institution shall set a reasonable time limit for the claimant to remedy the deficiency.
15.3. If the claimant fails to remedy the deficiency within the prescribed time limit, the arbitral institution may leave the statement of claim without consideration. This shall not restrict the claimant's right to apply to the arbitral institution again after remedying the deficiency, unless otherwise provided by law, the arbitration agreement, or these Rules.
15.4. Upon receipt of the statement of claim in arbitration, the arbitral institution shall send a copy thereof and the attached documents to the respondent and set a time limit for submitting a statement of defence.
Article 16. Statement of Defence
16.1. The respondent may submit a written statement of defence within the time limit set by the arbitral institution.
16.2. The statement of defence shall contain:
(a) the respondent's position on the relief sought in the claim;
(b) the factual and legal grounds for the claim;
(c) evidence or a list thereof;
(d) a document confirming the representative's authority, where necessary.
16.3. If the statement of defence does not meet the requirements established by these Rules, the arbitral tribunal may grant the respondent a reasonable period to remedy the deficiency.
16.4. Failure to submit a statement of defence or to remedy a deficiency within the prescribed time limit shall not prevent the consideration of the case and shall not be deemed an admission of the claim. In such a case, the arbitral tribunal shall consider the case on the basis of the materials and evidence submitted.
Article 17. Counterclaim
17.1. The respondent may submit a counterclaim within the time limit for submitting a statement of defence or within an additional period set by the arbitral tribunal.
17.2. A counterclaim shall be admitted if it arises from the same or an interrelated legal relationship and its joint consideration will facilitate the prompt, efficient and fair resolution of the dispute.
17.3. The rules established by these Rules for statements of claim in arbitration shall apply to counterclaims.
Chapter VI. Consideration of the Case
Article 18. Jurisdiction of the Arbitral Tribunal
18.1. The arbitral tribunal may rule on its own jurisdiction, including the existence, validity and effect of the arbitration agreement.
18.2. A party shall raise a plea that the arbitral tribunal lacks jurisdiction no later than the submission of the statement of defence, unless the arbitral tribunal decides otherwise for good cause.
18.3. A decision of the arbitral tribunal on jurisdiction may be challenged only in accordance with the procedure established by the legislation of Georgia.
Article 19. General Rules of Arbitral Proceedings
19.1. Arbitral proceedings shall be conducted in accordance with the principles of equality of the parties, adversarial proceedings and a fair hearing. Each party shall be afforded an equal opportunity to submit explanations, evidence and motions.
19.2. The arbitral tribunal shall independently determine the procedure for considering the case, unless otherwise provided by law, the arbitration agreement or these Rules.
19.3. The arbitral tribunal may establish a procedural timetable, set procedural time limits and modify them in light of the circumstances of the case.
Article 20. Oral Hearing
20.1. Arbitral proceedings shall be conducted with an oral hearing, unless otherwise provided by the arbitration agreement or these Rules.
20.2. The arbitral tribunal shall notify the parties in advance of the time, place and format of the oral hearing.
20.3. Notwithstanding the parties' agreement, the arbitral tribunal may schedule an oral hearing if it considers this necessary for a thorough, objective and fair consideration of the case.
20.4. The failure of a party to appear, provided that the party was duly notified, shall not prevent the consideration of the case, unless the arbitral tribunal decides otherwise.
Article 21. Consideration of the Case Without an Oral Hearing
21.1. The parties may agree in writing that the dispute shall be considered and resolved without an oral hearing, solely on the basis of explanations, evidence and other case materials submitted in writing.
21.2. Each party may, through the arbitral institution, propose in writing to another party that the case be considered without an oral hearing.
21.3. Consideration of the case without an oral hearing shall be permitted only with the written consent of all parties.
21.4. Notwithstanding the parties' agreement, the arbitral tribunal may schedule an oral hearing if it considers this necessary for a thorough, objective and fair consideration of the case.
Article 22. Evidence
22.1. Each party shall prove the circumstances on which it relies in support of its claim or defence.
22.2. The arbitral tribunal shall determine the admissibility, relevance, reliability and probative value of evidence.
22.3. The arbitral tribunal may, upon a party's motion or on its own initiative, require the submission of additional evidence.
Article 23. Witness, Expert and Specialist
23.1. The arbitral tribunal may examine a witness, appoint an expert or invite a specialist if this is required for a thorough consideration of the case.
23.2. A party may submit an expert opinion or move for the appointment of an expert.
23.3. Experts and specialists shall maintain the confidentiality of information that becomes known to them.
Article 24. Interim Measures
24.1. At the request of a party, the arbitral tribunal may grant interim measures if there is a legal basis for granting them.
24.2. The arbitral tribunal may modify, suspend or revoke an interim measure, taking into account the views of the parties.
Article 25. Suspension of Arbitral Proceedings
25.1. The arbitral tribunal may, at the request of a party or on its own initiative, suspend consideration of the case if this is required for the proper and fair resolution of the case.
25.2. Once the grounds for suspension have ceased to exist, the arbitral tribunal shall resume consideration of the case.
25.3. The period of suspension shall not count towards the time limit for the arbitral proceedings.
Chapter VII. Arbitral Award
Article 26. Arbitral Award
26.1. The arbitral tribunal shall render an award after the conclusion of the arbitral proceedings, within the time limit prescribed by these Rules, by law or by agreement of the parties.
26.2. An award by a panel of arbitrators shall be made by a majority vote. An arbitrator may not abstain from voting.
26.3. The arbitral award shall be made in writing, signed by the arbitrator (arbitrators), and shall contain:
(a) the date and place of the award;
(b) the composition of the arbitral tribunal;
(c) the identities of the parties;
(d) the subject matter of the dispute;
(e) the reasoning, unless the parties have agreed otherwise;
(f) the operative part;
(g) the time limit for compliance with the award, if one has been specified.
26.4. A signed copy of the award shall be delivered to each party.
26.5. The arbitral award shall be binding on the parties and shall be enforced in accordance with the procedure prescribed by the Law of Georgia on Arbitration and the legislation of Georgia.
Article 27. Correction and Interpretation of the Arbitral Award and Additional Award
27.1. Each party may, within 30 calendar days of receipt of the award, apply to the arbitral tribunal for:
(a) correction of an obvious clerical, arithmetic or other similar error;
(b) interpretation of the award;
(c) an additional award on an issue that was considered but was not addressed in the award.
27.2. The arbitral tribunal may also correct an obvious clerical, arithmetic or other similar error on its own initiative.
27.3. Any correction, interpretation or additional award made pursuant to this Article shall form an integral part of the arbitral award.
Chapter VIII. Conclusion of Arbitral Proceedings
Article 28. Termination of Arbitral Proceedings
28.1. The arbitral tribunal shall terminate the proceedings if:
(a) the claimant abandons the claim and the arbitral tribunal considers that the respondent has no legitimate interest in continuing the dispute;
(b) the parties have reached a settlement;
(c) the subject matter of the dispute no longer exists;
(d) legal succession is not permitted;
(e) continuation of the case is impossible for another legal or factual reason.
28.2. If the parties reach a settlement, the arbitral tribunal shall, at the parties' request, approve the settlement by an arbitral award or order, provided that it does not contravene the legislation of Georgia.
Article 29. Leaving a Claim Without Consideration
29.1. The arbitral tribunal shall leave a claim without consideration in the cases provided for by law, these Rules or agreement of the parties, including where the claimant withdraws the claim.
29.2. Leaving a claim without consideration does not deprive the claimant of the right to apply to arbitration again after the relevant grounds have been eliminated, unless otherwise provided by law, the agreement of the parties, or these Rules.
29.3. In the event of withdrawal of a claim, the arbitral tribunal shall issue an order leaving the claim without consideration.
Chapter IX. Arbitration Costs
Article 30. Arbitration Costs
30.1. The costs of arbitration proceedings comprise the arbitration fee, the costs of a representative, an expert, a specialist, an interpreter, the costs of obtaining evidence, and other necessary costs related to the consideration of the case.
30.2. The amount of the arbitration fee, the payment procedure, and the allocation of arbitration costs shall be determined by Annex №1 to these Rules, which constitutes an integral part of the Rules.
Chapter X. Final Provisions
Article 31. Final Provisions
31.1. Matters not provided for by these Rules shall be governed by the Law of Georgia on Arbitration and the legislation of Georgia in force.
31.2. Amendments and additions to the Arbitration Rules shall be approved by the authorized body of the arbitral institution and shall enter into force following their publication in accordance with the procedure prescribed by law, unless otherwise specified in the relevant decision.
31.3. Amendments and additions to the Rules shall not apply to arbitration proceedings commenced before their entry into force, unless the parties agree otherwise.
31.4. The invalidation or repeal of any provision of the Rules shall not entail the invalidity of the other provisions of the Rules, provided that arbitration proceedings can be conducted on the basis of the remaining provisions.
31.5. The arbitral institution shall conduct its activities in compliance with the principles of the Code of Ethics of the Georgian Association of Arbitrators. Arbitrators shall comply with the requirements established by that Code of Ethics when conducting arbitration proceedings.
31.6. If a court sets aside an arbitral award or refuses its recognition and enforcement on a ground that can be remedied, the arbitral institution shall be entitled, taking into account the court's decision, to resume the arbitration proceedings, remedy the identified defect, and render a new arbitral award in accordance with the procedure prescribed by law.
31.7. In the case provided for in paragraph 31.6 of this Article, the time limit for the arbitration proceedings shall commence anew from the date on which proceedings in the case are recommenced, unless otherwise provided by law or the agreement of the parties.
31.8. These Rules shall enter into force following their approval by the authorized body of the arbitral institution and publication in accordance with the procedure prescribed by the Law of Georgia on Arbitration.
To the Rules of Chamber of Financial Arbitration LLC
Annex N1
Article 1. Legal Force of the Annex
1.1. The amount of the arbitration fee established for the consideration and resolution of disputes by Chamber of Financial Arbitration LLC (hereinafter – the arbitral institution), and the procedure for its payment and refund, shall be determined by this Annex, which constitutes an integral part of the Arbitration Rules.
1.2. This Annex shall be approved together with the Arbitration Rules by the authorized body of the arbitral institution.
1.3. If the Arbitration Rules are sent to a party, this Annex shall be sent together with them.
Article 2. Amount of the Arbitration Fee
2.1. The arbitration fee for an arbitration claim shall be determined according to the following table:
Value of the subject matter of the dispute in lari
Amount of the arbitration fee in lari
0-10 000 (without an oral hearing)
250 lari
0-100 000
2%, but not less than 800 lari
100 001-500 000
1,8%
From 500 001
1.5 %
But not more than 30,000 lari
For labour disputes
2%, but not less than 1200 lari
2.2. In the case of a claim for a declaration that a contract is invalid, the fee shall be determined on the basis of the value of the contract whose invalidation the claimant seeks.
2.3. If the claim concerns a declaration that a mortgage, pledge, or suretyship agreement is invalid, the fee shall be determined on the basis of the value of the principal obligation secured by the relevant agreement.
2.4. If the subject matter of the dispute cannot be valued in monetary terms, the arbitration fee shall be 3000 lari.
2.5. The arbitration fee for an application for the imposition, modification or cancellation of an interim measure to secure a claim shall be GEL 150.
2.6. The arbitration fee shall include all taxes provided for by the tax legislation of Georgia, including value added tax (where applicable).
Article 3. Procedure for Payment of the Arbitration Fee
3.1. The arbitration fee shall be paid by bank transfer to the bank account specified by the arbitral institution.
3.2. An arbitration claim, counterclaim or other application for which a filing fee is prescribed shall be considered only after payment of the applicable fee, unless otherwise provided by the Rules or a decision of the arbitral institution.
3.3. If the amount in dispute indicated by the claimant manifestly fails to correspond to the actual value of the dispute, the arbitral institution shall be entitled to determine the value of the claim for the purpose of calculating the fee.
3.4. The costs of an expert, specialist, interpreter, on-site inspection or other additional procedural action shall be paid in advance by the party requesting the relevant action, unless the arbitral tribunal decides otherwise.
Article 4. Procedure for Refund of the Arbitration Fee
4.1. The arbitration fee may be refunded in the cases provided for in this Annex and the Rules.
4.2. If the claimant withdraws the arbitration claim before the arbitration claim and accompanying materials are sent to the respondent, the claimant shall receive a refund of 70% of the arbitration fee actually paid.
4.3. If the claimant withdraws the arbitration claim or abandons the claim after the arbitration claim and accompanying materials have been sent to the respondent, but before the first arbitration hearing is held, the claimant shall receive a refund of 50% of the arbitration fee actually paid.
4.4. If the case is considered without an oral hearing, the rule providing for a 50% refund under paragraph 4.3 of this Article shall apply until the arbitral tribunal proceeds to consider the merits of the case.
4.5. If the arbitration claim is withdrawn or the claim is abandoned after the first arbitration hearing has been held or, where the case is considered without an oral hearing — after the arbitral tribunal has proceeded to consider the merits of the case, the arbitration fee paid shall not be refunded.
4.6. If the parties reach a settlement, the refund of the arbitration fee shall be determined as follows:
(a) If the parties reach a settlement before the arbitration claim and accompanying materials are sent to the respondent — the claimant shall receive a refund of 70% of the arbitration fee paid;
(b) If the parties reach a settlement after the claim and accompanying materials have been sent to the respondent, but before the first arbitration hearing is held or, where the case is considered without an oral hearing — before the arbitral tribunal proceeds to consider the merits of the case, the claimant shall receive a refund of 50% of the arbitration fee paid;
(c) If the parties reach a settlement after the first arbitration hearing has been held or, where the case is considered without an oral hearing — after the arbitral tribunal has proceeded to consider the merits of the case, the arbitration fee shall not be refunded.
4.7. If the arbitration claim is not accepted for proceedings due to the lack of jurisdiction of Chamber of Financial Arbitration LLC, the absence of a relevant arbitration agreement or any other circumstance precluding consideration of the dispute by Chamber of Financial Arbitration LLC, the claimant shall receive a refund of 70% of the arbitration fee actually paid.
4.8. If the arbitration claim is not accepted for proceedings or is left without consideration due to the claimant's failure to comply with the requirements established by the Arbitration Rules, failure to remedy a deficiency within the prescribed time limit or any other circumstance attributable to the claimant, the refund of the arbitration fee shall be determined according to the stage of the proceedings at which the proceedings ended, in accordance with the procedure established by this Article.
4.9. If the arbitration proceedings are terminated or the claim is left without consideration after the first arbitration hearing has been held or, where the case is considered without an oral hearing — after the arbitral tribunal has proceeded to consider the merits of the case, the arbitration fee paid shall not be refunded, except in a case expressly provided for by the Arbitration Rules.
4.10. The decision on the grounds for refunding the arbitration fee and the amount to be refunded shall be made by Chamber of Financial Arbitration LLC or, where the issue arises in the course of arbitral proceedings and its resolution falls within the jurisdiction of the arbitral tribunal — by the arbitral tribunal.
4.11. The arbitration fee shall be refunded within 5 banking days of the relevant decision being made, to the bank account specified in writing by the fee payer.
4.12. The amount to be refunded under this Article shall be calculated on the basis of the arbitration fee actually paid.
4.13. The portion of the arbitration fee that is not refundable under this Article shall be retained by Chamber of Financial Arbitration LLC to cover the costs associated with registering and administering the case and organising the arbitration proceedings, and no additional deduction shall be made unless an actual expense separately payable by a party has arisen in accordance with the Arbitration Rules.
Article 5. Arbitration Costs
5.1. Arbitration costs shall include:
the arbitration fee;
the costs of an expert, specialist, interpreter and on-site inspection;
other necessary procedural costs.
5.2. The arbitral tribunal shall decide on the reimbursement of the costs of a representative's services and other necessary expenses incurred by a party in the final award.
5.3. Unless the parties have agreed otherwise, arbitration costs shall be allocated in proportion to the claims granted and rejected.
5.4. When allocating costs, the arbitral tribunal shall be entitled to take into account a party's procedural conduct, including unjustified delay of the proceedings or the incurrence of additional costs.