The Basis of Domestic Judgment Enforcement
A court decision fulfils its purpose only when it is executed. The Georgian Law on Enforcement Proceedings regulates which acts are subject to compulsory execution, on what conditions enforcement proceedings are opened, and who carries out the enforcement measures. The execution of acts issued by domestic bodies — Georgian courts and administrative organs — is the backbone of this system, and for a creditor, using it correctly often decides whether a real result against the debtor is obtained.
The Catalogue of Acts Subject to Enforcement
Article 2 of the Law defines the list of acts subject to execution under the procedure established by it:
- final court decisions, rulings and decrees in civil and administrative cases;
- final convicting judgments in criminal cases — as to fines, deprivation of property and compensation of the victim;
- decisions made immediately executable by the court;
- the court's warrant on the return of a leased item;
- notarial acts and pledge certificates;
- arbitral awards;
- individual administrative-legal acts of administrative organs imposing fines;
- judgments of the European Court of Human Rights binding on Georgia;
- mediation settlements for whose execution a court ruling has been issued and an enforcement writ delivered.
This catalogue is closed — no other act is subject to compulsory enforcement unless the law so provides directly.
The Enforcement Writ and the Opening of Proceedings
Under Article 20 of the Law, enforcement proceedings may not be opened without an enforcement writ, apart from cases connected with the execution of judgments of the European Court of Human Rights, pledge certificates, leasing certificates and orders on debt collection. The writ is issued on the decision subject to enforcement under this Law, and it is issued to the creditor. The National Enforcement Bureau opens proceedings on the basis of the creditor's written application and the enforcement writ. Exceptions exist where no application is filed: for instance, where, in simplified proceedings on claims for collection of monetary debts, execution of the debt-collection order was claimed in advance. It also matters that execution may begin only where the persons in whose favour and against whom execution is to take place are specifically named in the writ; and where the claim is secured by a mortgage or registered pledge, compulsory enforcement proceeds even against an owner of the property who is not the debtor named in the writ — subject, however, to the presumption of succession to the debtor's position. Where the decision provides for the growth of the creditor’s claim on the principal sum through interest and/or a surcharge, that accrual stops from the day the enforcement proceedings are opened — apart from tax claims and the surcharge defined by the law on funded pensions — and resumes only after the Bureau returns the writ to the creditor.
The Enforcement Fee
The enforcement fee is a mandatory payment established by legislation for the services rendered by the National Enforcement Bureau, credited to the Bureau's account. The amount and the manner of payment are determined by an order of the Minister of Justice of Georgia, and payment of the fee rests on the debtor — a circumstance the creditor must take into account when planning the measures. On a case of collection of a monetary sum the fee payable must not exceed 7% of the enforceable claim and must not be less than 50 lari, while the fee payable by the creditor upon submitting the enforcement writ to the Bureau must not exceed 2% of the claim and likewise must not be less than 50 lari. On cases connected with judgments of the European Court of Human Rights no fee is charged at all.
Seizure of Movables — the Standard Enforcement Measure
Article 40 of the Law defines the general rule of seizure: placing a seizure on movables means inventorying the debtor's property, declaring a prohibition of disposal — alienation, pledge, lease — and/or transferring the property for safekeeping. The enforcement officer records the seized items in the inventory-and-seizure act, and a transaction concluded after the seizure is void. For the debtor this means that any "sale" of seized property produces no legal effect and exposes the acquirer to risk as well.
Frequently Asked Questions
Below we answer the questions most frequently asked on this topic.
Is enforcement possible without an enforcement writ?
As a rule, no — proceedings are not opened without the writ. Exceptions include, for example, judgments of the European Court of Human Rights and pledge and leasing certificates.
What does the non-filing of an application mean?
Where execution of a debt-collection order was claimed in advance in simplified proceedings, the creditor no longer files an application demanding the opening of enforcement.
Who pays the enforcement fee?
Payment rests on the debtor; the amount is determined by an order of the Minister of Justice.
What happens to a transaction concluded after the seizure?
It is void — disposal of seized movables produces no legal effect.
When is the debtor notified of the opening of proceedings?
No later than 5 days from the opening of the enforcement proceedings. If the debtor performs voluntarily within 7 days of the notification, only the part corresponding to the creditor’s prepaid fee is imposed, while in the case of willful non-performance — the fee in its full amount.
How We Help on Legal.ge
Domestic judgment enforcement requires properly obtaining the enforcement writ, timely filing of the application and deliberate management of the measures. On Legal.ge you can consult an experienced lawyer who will assist you at every stage of the process — from obtaining the writ to placing the seizure. Submit a request on the site and get qualified assistance.