The arbitral award concludes the proceedings, but the law regulates an entire framework around it — from the time limit for rendering it to the requirements of signature and reasoning. The Law of Georgia on Arbitration governs this field through five provisions: Article 37 — decision-making by a multi-member tribunal, Article 38 — settlement between the parties, Article 39 — the content and time limit of the award, Article 40 — termination of the proceedings without an award, and Article 41 — correction, interpretation and additional award.
Decision-Making by a Multi-Member Tribunal and Voting
Under Article 37, a tribunal composed of several arbitrators renders its decision by a simple majority of votes, unless otherwise agreed by the parties. An arbitrator has no right to abstain from voting — abstention is excluded. Procedural questions connected with the rendering of the decision may be decided by the presiding arbitrator where authorised by the parties or by all the arbitrators.
Settlement and the Award on Agreed Terms
Article 38 provides that where the parties settle during the proceedings, the arbitration terminates the proceedings. At the parties' request the tribunal may record the settlement in an arbitral award on the agreed terms. Such an award must be rendered within 30 days of the acceptance of the application concerning the settlement, in compliance with the requirements of Article 39. An arbitral award on settlement has the same legal force as any other award rendered as a result of the examination of the merits of the dispute.
Time Limits, Form and the Reasoned Part
Article 39 sets the framework: the award must be rendered within 180 days of the commencement of the proceedings, unless otherwise agreed by the parties; where necessary, the arbitrator may extend this period by not more than 180 days. Performance of the award is binding on the parties; it must be made in writing and signed by the arbitrator or arbitrators. In a tribunal composed of several arbitrators the signatures of the majority suffice, and where an arbitrator refuses to sign or holds a dissenting opinion, an appropriate note is made. The award must indicate the arbitrators who rendered it, the parties, and the date and place of rendering. It must contain a reasoned part setting out the motives on which the tribunal based the decision, unless the parties agreed to dispense with reasons or the award is made under Article 38. Signed copies are delivered to the parties, and the award enters into force from the moment it is rendered.
Termination of the Proceedings Without an Award
Article 40 governs termination: the proceedings terminate after the award is signed and delivered to the parties, or by a ruling of the tribunal. A ruling on termination is made where the claimant withdraws the claim — except where the respondent objects and the tribunal considers that the respondent has a legitimate interest in the resolution of the dispute; where the parties agree to terminate; or where the tribunal establishes that the continuation of the proceedings is for some other reason unnecessary or impossible.
Correction, Interpretation and Additional Award
Article 41 gives the parties a corrective mechanism: within 30 days of the rendering of the award, after notifying the other party, each party may request the tribunal to correct an error made in the calculations, as well as typographical or similar errors, and, where the parties agree, to give an interpretation of a specific point or part of the award. A justified request must be satisfied within 30 days of its acceptance. Within 30 days of the rendering of the award the tribunal may also correct such an error on its own initiative. An additional award is rendered at a party's request — concerning claims that were presented during the proceedings but not reflected in the award — within 60 days of the acceptance of the request. In case of necessity these periods may be extended by not more than 30 days, and the award already rendered remains in force meanwhile.
Frequently Asked Questions
The following questions about arbitral awards arise most often.
Within what period must an arbitral award be rendered?
Within 180 days of the commencement of the proceedings, unless otherwise agreed by the parties; where necessary, the arbitrator may extend the period by not more than 180 days.
Does a settlement have the force of an award?
Yes. At the parties' request the tribunal confirms the settlement by an arbitral award which has the same legal force as an award rendered after examination of the merits.
Can an error in the award be corrected?
Yes — within 30 days of the award, computational, typographical or similar errors may be corrected or, with the parties' consent, an interpretation given; the corrected text forms part of the award.
When is an additional award rendered?
On claims presented during the proceedings but not reflected in the award — within 60 days of the acceptance of the request, where the tribunal considers it justified.
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