Translated by IRIS Georgia Updated as of March 2004 2. The substantial violation of the procedures for the preparation and promulgation of an administrative decree means issuance of an administrative decree at the meeting, which was held in violation of Article 32 or Paragraph 2 of Article 34, or in violation of applicable procedures of administrative proceeding, or the violation of law, which would otherwise result in a different decision. 3. An administrative decree may be nullified by the administrative agency that issued it. If a complaint or lawsuit was filed against the decree, it shall be declared invalid by a higher administrative agency or the court. 4. An empowering administrative act may not be nullified if an interested party shows reasonable reliance upon the administrative decree, except when the decree substantially undermines the lawful rights or interests of the State, public or any person. 5. The reasonable reliance of an interested party may be invoked if he performed an action of legal importance on the basis of the administrative decree, and if the nullification of the decree will inflict substantial harm upon him. No legitimate trust shall be invoked if it is based on an illegal action of an interested party. 6. If the empowering administrative decree that violates state or public interests, or the rights or interests of other entities was declared null and void, in the event of circumstances stipulated in Paragraph 5 of this Article all material damages suffered by the interested party as a result of the nullification of the administrative decree shall be redressed on the basis of balancing of private and public interests. 7. The nullification of an administrative decree shall mean the elimination of the legal consequences of its enforcement. 8. In case of the nullification of an administrative decree a person may seek the recovery of funds or other property, which was paid or transferred to a state or local selfgovernment and government agency. If such recovery is impossible, he shall be granted appropriate and full redress. 9. If a person received any property or favor on the basis of a void administrative decree, he shall return it in compliance with Articles 976-991 of the Civil Code of Georgia. 6. An administrative decree shall be declared null and void in accordance with the procedures for the adoption of an administrative decree. Article 61. The invalidation of an administrative decree 1. The administrative agency that issued an administrative decree may declare it invalid. 2. An administrative agency may not invalidate the empowering administrative decree that was issued in compliance with law, except when: (a) the invalidation is expressly required by law or the regulation that was adopted by a higher agency pursuant to law, (b) the invalidation is expressly required by the administrative decree in accordance with law, (c) the interested party failed to perform the obligation prescribed by the administrative decree, which may constitute the ground for declaring the decree invalid, Page 20 of 54

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