UNCITRAL Rules Arbitration Within the Georgian Law
The UNCITRAL Arbitration Rules — the regulation developed by the United Nations Commission on International Trade Law — are the classic foundation of ad hoc arbitration: the parties choose these rules in their clause but appoint no permanent arbitral institution to administer the hearing. The Georgian Law on Arbitration fully accommodates this model: the rules of the arbitral proceedings are determined by the parties in compliance with the requirements of the law, and where there is no agreement between the parties, the dispute is examined under the rules determined by the arbitration, again in compliance with the law’s requirements.
The practical point of this choice is maximal procedural freedom: the parties arrange the hearing themselves under the chosen regulation, while Georgian law supplies the minimal safety framework that keeps the process workable without an institution — above all in appointing arbitrators and settling jurisdiction.
Appointing Arbitrators Without an Institution
The absence of an institution means the parties themselves must organise the appointment of arbitrators. The law lays down clear rules: a person may not be appointed arbitrator without consent, and consent must be declared in writing. The procedure for appointing the arbitrator(s) and the chair is established by agreement of the parties — and under a UNCITRAL clause it is normally defined by those same rules.
Where there is no agreement of the parties, or the agreed procedure proves impossible to carry out, the law provides a fallback mechanism: for an arbitration of three arbitrators, each party appoints one and the two appointed arbitrators appoint the chair. If a party fails to appoint within 30 days of the other party’s request, or the two arbitrators fail to agree on the third within 30 days of their appointment, the court appoints the arbitrator at a party’s request — within 30 days of acceptance of the application. For a sole-arbitrator arbitration where the parties cannot agree, the court likewise appoints. The court’s decision is final and not subject to appeal — this is what keeps the process from deadlock.
Kompetenz-Kompetenz: the Arbitration Rules on Its Own Jurisdiction
In ad hoc arbitration, where no institution screens the claim administratively, it matters especially that the law empowers the arbitration to rule on its own jurisdiction, including the existence and authenticity of the arbitration agreement. Moreover, an arbitration clause forming part of a contract is treated as an independent agreement not depending on the contract’s other terms: declaring the contract invalid does not invalidate the clause.
The rules come with deadlines: a statement that the arbitration lacks jurisdiction may be made up to the submission of the statement of defense, and a party’s appointment of an arbitrator does not deprive it of that right. A statement that the arbitration is acting beyond its powers must be made within 7 days of the party learning of the circumstance. If the arbitration establishes its jurisdiction before the final award, any party may challenge that decision in court within 30 days of receiving notice; the court rules within 14 days of acceptance of the application, and the ruling is final. Even while a challenge is pending, the proceedings may commence, continue and end in an award.
The Court’s Supporting Role and Practical Recommendations
The law leaves the court in a supporting role: it appoints an arbitrator when the parties’ mechanism fails, and reviews positive jurisdiction rulings in an appeal-like manner. This is especially visible in ad hoc arbitration: where an administered arbitration would rely on the institution for these functions, here the court performs them as defined by law. The law also provides for court support in other matters — including assistance in obtaining evidence and in securing interim measures.
Practical advice for a UNCITRAL clause: state the chosen rules clearly; fix the number of arbitrators and the appointment procedure so the matter never reaches the fallback mechanism; and remember that objections must meet the deadlines — before the statement of defense, or within 7 days of learning of an excess of powers. Competent help at the drafting stage costs far less than repairing a defective clause later.
Frequently Asked Questions
Below are answers to the questions that arise most often when choosing arbitration under the UNCITRAL Rules.
Who appoints the arbitrator if there is no institution?
The parties themselves define the appointment procedure; written consent is mandatory. For a three-member tribunal each party appoints one arbitrator and the two appoint the chair; if the 30-day windows pass without result, the court appoints the arbitrator within 30 days of acceptance of the application, finally and without appeal.
Can invalidity of the contract defeat the arbitration’s jurisdiction?
No. An arbitration clause forming part of a contract is treated as an independent agreement not depending on the contract’s other terms; declaring the contract invalid does not invalidate the clause.
Within which deadlines may jurisdiction be raised?
A negative statement — up to the submission of the statement of defense; an objection to excess of powers — within 7 days of learning of the circumstance; a challenge to a positive ruling — within 30 days of notice; and the court rules within 14 days.
What if the parties agree on nothing beyond the rules?
Where there is no agreement between the parties on the rules of the proceedings, the dispute is examined under the rules determined by the arbitration, in compliance with the law’s requirements — so the choice of rules remains the defining factor.
How We Help on Legal.ge
The Legal.ge team helps parties set up ad hoc arbitration under the UNCITRAL Rules: we work out the clause wording, plan the arbitrator-appointment procedure so the matter never needs the court’s fallback mechanism, and control the deadlines for jurisdictional statements. If you are planning a UNCITRAL clause or are already in an ongoing ad hoc hearing, contact us — we will review your situation and map out the next steps.