ICC and SCC Arbitration Within Georgian Law
Choosing the ICC — the International Chamber of Commerce — or the SCC — the Arbitration Institute of the Stockholm Chamber of Commerce — is one of the common decisions in international transactions. The Georgian Law on Arbitration frames such administered arbitration with a general but important framework: the parties themselves determine the basic parameters of the procedure, while the law at the same time supplies the disciplinary safeguards that overlay the institution’s rules — on the composition of the tribunal, the form of the hearing and the deadline for the award.
For Georgian counterparties this means that choosing the ICC or the SCC in a contract works fully within Georgian law; what is worth deciding deliberately in the clause are the three matters the law addresses directly — the number of arbitrators, the form of the hearing and the time limit for rendering the award.
Number of Arbitrators: Three as the Statutory Default
Under the law, the arbitration consists of one or more arbitrators, and their number and the manner of appointment are determined by the parties. As a rule the parties appoint an equal number of arbitrators, unless they have agreed otherwise. But if the number of arbitrators is not determined by the parties’ agreement, the arbitration must be composed of three arbitrators — the configuration that traditionally dominates complex international cases, including ICC and SCC practice.
For an even number the law provides a balancing rule: if the arbitration agreement fixes an even number of arbitrators, the arbitrators already appointed are obliged, within 10 days of their appointment, to appoint one more arbitrator, unless the parties have agreed otherwise. Stating a three-member composition directly in the clause removes this uncertainty in advance and makes the process predictable.
Form of the Hearing: Oral or Documents Only
The law entrusts the form of the hearing to the parties: if the form is not determined by their agreement, the arbitration may conduct an oral examination of the evidence or examine the case on the basis of documents and other evidence alone. This lever is designed precisely for documentary cases: most international commercial disputes, where the facts are visible from the papers, can be resolved without oral sittings — with a notable saving of time and cost.
But the party’s guarantee is also in the law: at the request of either party the arbitration must conduct an oral hearing at any stage of the proceedings, except where the parties have waived the oral hearing. All hearings are, moreover, closed unless the law or the parties’ agreement provides otherwise: documents, evidence and statements submitted are not to be published or used in other proceedings, and the arbitrator and every participant must preserve the confidentiality of the information received — for business this is often one of the main reasons for choosing arbitration.
The Award Deadline: 180 Days Plus Another 180
Georgian law adds an extra disciplinary layer to administered arbitration: the arbitral award must be rendered within 180 days of the commencement of the proceedings, unless the parties have agreed otherwise. Where necessary, the arbitrator may extend this period by not more than 180 days — so the statutory maximum regime reaches up to one year from the commencement of the proceedings.
The safeguards around the award are equally clear: it must be made in writing and signed by the arbitrator(s) — in a three-member composition, by the majority of the arbitrators; a refusal to sign and/or a dissenting opinion is recorded by an entry. The award indicates the arbitrators who rendered it, the parties, and the date and place of issue; it must contain reasons, unless the parties have agreed to dispense with a reasoned part. Signed copies are delivered to the parties, and the award enters into force upon issuance — its performance is binding on the parties.
Frequently Asked Questions
Answers to the questions most often raised when choosing the ICC or the SCC.
May an ICC or SCC clause be used in a Georgian contract?
Yes. The parties themselves determine how the arbitration is organised, and the choice of an institution falls within that freedom; the safeguards of Georgian law — on composition, form and deadlines — overlay that choice.
How many arbitrators will there be if the clause is silent?
Three — the statutory default, which is also the usual configuration for complex international cases. Where an even number is fixed, the arbitrators must appoint one more within 10 days.
Can the case be decided without sittings?
Yes — if the form is not fixed by agreement, the arbitration may examine the case on documents alone. But at a party’s request an oral hearing must be held at any stage, unless the parties have waived oral hearings.
Within what time is the award rendered?
Within 180 days of the commencement of the proceedings, unless the parties agree otherwise; where necessary the arbitrator may extend the period by up to 180 days. The award enters into force upon issuance and binds the parties.
How We Help on Legal.ge
The Legal.ge team helps Georgian businesses formulate an ICC or SCC clause deliberately: we structure the number of arbitrators and the appointment method, weigh whether a documents-only hearing suits the nature of your case, and control the deadlines at every stage. If your contract contains an ICC or SCC clause or you are considering one, contact us — we will review the situation and propose the optimal wording.