The FINANCIAL - How DRC Carries out the Successful Resolution of Local and International Commercial Disputes

How DRC Carries out the Successful Resolution of Local and International Commercial Disputes

How DRC Carries out the Successful Resolution of Local and International Commercial Disputes

The FINANCIAL -- The “Dispute Resolution Center” (DRC) carries out the alternative procedures from the local court, namely Arbitration and Mediation to resolve local and international commercial disputes. 

DRC was established in 2008 as a permanent arbitration institution. Its main partner is the non-entrepreneurial (non-commercial) legal entity - Georgian Business Association, which is the country’s largest business association. Although the DRC structure is composed of the DRC Court, Directorate and Secretariat, none of this division examines the arbitration dispute. An independent and impartial arbitral tribunal created by the parties shall make a decision on the arbitration dispute.

Maka Nachkebia, CEO of DRC, said: “The DRC Court, which is composed of distinguished reputable and qualified professionals in the country, ensures the protection of arbitration proceedings, facilitates parties to formulate an arbitral tribunal and conducts the formal review of the final arbitration award. It is completely independent of the founders of DRC.”

Online arbitration

“DRC has been conducting an arbitration proceeding in an electronic means for many years, allowing parties to access it online, from the office, and from any place in the world (where the internet is available) to get acquainted with the material in the case, to submit their position and evidence, and to participate in sessions through Skype.”

“In 2018, the DRC Court approved ‘Online Arbitration Rules’, which is the only precedent in Georgia, also in the region. In order to use these rules, parties agree that the arbitration proceedings shall be conducted by the DRC online in accordance with the DRC Online Arbitration Rules.”

“This will give them an opportunity to conduct the entire proceedings online, starting with the submission of an arbitration award, through to the decision of the arbitration award. We believe this service is important for distribution and transportation companies, as well as for medium-sized financial disputes.”

“The electronic solution of the business relationship documents, including conventions, is an ordinary factor, and the dispute arising from such interaction also using electronic forms for online solutions significantly saves the costs associated with arbitration and reduces the arbitration examination.”

New projects

“The new and important project of DRC is ‘Arbitration for Insurance Disputes’, in which the group (DRC arbitrators, representatives of insurance association, representatives of insurance companies, representatives of the DRC Court and the Secretariat) were working on the project in close cooperation with the Association of Insurance Companies: A) Arbitration Rules for Reviewing Insurance Disputes; B) Draft Institutional Amendment to the DRC Court; C) Accreditation rate to be included in the list of arbitrators reviewing the insurance disputes. The first such accreditation course was held in the second half of April 2018.”

“DRC is the only arbitration institution which is part of the arbitration proceeding rules, the ‘Code of Ethics of the Arbitrators’ approved by the Georgian Association of Arbitrators, thus facilitating the independence and impartiality of the Arbitration Tribunal.”

Main challenges

“The main challenge of the DRC is to persuade the business community to take advantage of alternative services for dispute resolution. Besides, it is important for not only Georgian business, but also the investors who have come to Georgia, to take advantage towards DRC Arbitration. of the draft in DRC administration. It should be noted that in recent years the share of business disputes has increased. We would like to outline a case in which the DRC was chosen as the authorized body of the largest foreign corporation and its Georgian contractor on the basis of FIDIC (The International Federation of Consulting Engineers), a member of the Board of Disputes.”

“It is noteworthy that the referee of the DRC arbitrators was expressed by foreign arbitrators as having high reputation, qualification, and experience. This encourages the DRC to examine the disputes relating to the commercial contract between residents of different countries or related to it.”

International arbitration

“The DRC also takes part in an important event for the development of international commercial arbitration. In particular, DRC supports the so-called ‘Prague Rules’, which envisage the Inquisitorial Rules for Obtaining Evidence in International Arbitration, and which is scheduled to be signed on 14 December 2018, in Prague.”

“The Prague Rules about ‘Obtaining Evidence in International Arbitration’ are a different (alternative) version of the rules adopted by the International Bar Association and are compatible with countries with civil law jurisdiction. The ‘Prague Rules’ aim to make arbitration more efficient, reduce the timeframes for examination disputes and costs related to it.”

DRC services provide the most effective and economical solution of private material disputes. It is important to take care of the effective settlement of property disputes based on commercial, financial, corporate, labor and other private relationships, at the agreeing stage and it is recommended to use the DRC website (, a model arbitration clause.