About this service
Against an arbitral award issued in Georgia the law leaves only one procedural remedy — setting it aside — and the grounds for that route form an exhaustive list. Articles 42 and 43 of the Law on Arbitration determine in which cases a court may annul an award, within what term a complaint may be filed, and how the examination can be stayed so that the arbitration itself eliminates the ground for annulment. Our service helps parties navigate this resistive stage correctly.
Annulment — the sole remedy and the exhaustive grounds
Article 42 frames the perspective from the outset: within this law, the only procedural remedy against an arbitral award is its annulment. The court will set the award aside only in defined cases: a party against whom the award was issued applies by complaint and proves that at the time of concluding the agreement it lacked capacity or was a recipient of support who did not receive the respective assistance, or that the agreement is void or lapsed; that it was not properly informed of the appointment of the arbitrator or of the examination and could not present its position; that the award concerns a dispute not submitted to arbitration or contains a decision beyond the framework of the parties' request — in which case annulment is possible only in the part exceeding the framework; or that the composition of the arbitration or the proceedings did not correspond to the parties' agreement or to the law. The court may itself also establish that the dispute cannot be the subject of arbitral examination under Georgian legislation, or that the award contradicts public order — these two extended grounds are applied ex officio.
Time limits and the effect on enforcement
A complaint for setting aside an award may be submitted to the court within 90 days of delivery of the award to the party; where the party has submitted the corresponding request provided by law in connection with the award, the term is counted from the moment of delivery of the decision issued by the arbitration on that request. Filing the complaint does not by itself suspend enforcement of the award — save for the exception provided by law; and where the court has already issued a decision on recognition and enforcement, annulment is not permitted on a ground that was substantively examined and rejected in the recognition process — the complaint is not admitted, and if admitted, the proceedings on it are terminated. This means saving arguments for later no longer works: every substantive argument must be used at the first opportunity.
Staying the examination: giving the arbitration a chance
Article 43 also gives the process a curative instrument: the court seized with a complaint for annulment has the right, on the basis of a party's motion, to stay the examination for no more than 30 days from the acceptance of the complaint into proceedings, so that the arbitration is given the opportunity to resume the examination or to perform any action that, in the arbitration's view, is necessary to eliminate the ground for annulment. The court notifies the arbitration of the stay by notice within 3 days of the stay. The practical significance of this mechanism is considerable: if the ground for annulment is curable — for instance, a procedural defect — the arbitration is given the chance to remedy it itself, and the award remains in force.
Frequently asked questions
These are the questions parties raise most often about setting aside an award, and the answers come directly from the statutory text.
Within what term can an annulment complaint be filed?
Within 90 days of delivery of the award to the party; where a corresponding request was submitted, from the delivery of the decision on that request. Missing the term extinguishes the remedy.
Can an award be annulled for disagreement with its substance?
No — the law defines the grounds of annulment exhaustively and the court does not retry the merits: attention goes to capacity, information, scope, composition and procedure, arbitrability and public order.
Does the complaint suspend enforcement?
As a general rule, no; enforcement of the award continues despite the complaint, save for the exception provided by law.
What is the purpose of staying the examination?
To give the arbitration the opportunity to eliminate the ground for annulment — upon a motion the court may stay the examination for no more than 30 days; the arbitration is notified within 3 days.
How We Help on Legal.ge
We assess whether a real ground for annulment exists in your case and whether the term has been missed; build the evidentiary system for the complaint — to expose defects of information, scope and procedure; represent you in court; and, where necessary, move for a stay of the examination so that the arbitration cures the defect itself. For the opposing party, we defend the award at every available level. Contact us and receive a realistic assessment of the complaint's prospects.