Refusal to Grant Residence Permit to individual entrepreneur overturned by court

JUST case: Court Stories

1. Case Background
Our client, Ms. Elizaveta S., a citizen of the Russian Federation and an individual entrepreneur, applied to the Public Service Development Agency in October 2022 for a work residence permit in Georgia. On November 20, 2022, the Agency denied her application, citing Articles 18 (1)(a) and (g) of the Law of Georgia "On the Legal Status of Aliens and Stateless Persons." These provisions were interpreted to mean that the applicant’s stay in Georgia was deemed "inexpedient" for the protection of state or public security.

We appealed this decision to the Tbilisi City Court, which on March 23, 2023, partially upheld our claim. The Court ruled that the Agency was obliged to conduct a more thorough investigation and provide a new, well-reasoned assessment of the case. However, on May 24, 2023, the Agency again denied Ms. Elizaveta S.'s application, relying on the same grounds.
2. Violated Right
The Public Service Development Agency is authorized to make decisions on granting or refusing residence permits based on information received from other state authorities. However, the Court emphasized that such discretion is not absolute and must be exercised in compliance with the principles of proportionality and balance between public and private interests.

In this case, although the refusal was based on a conclusion by the State Security Service, the Agency failed to present any other evidence to substantiate its decision and did not conduct an independent investigation as required by the Court.
3. Our Actions: Strategy of defense
We decided to appeal the Agency’s repeated refusal once again. Our legal strategy was based on the following arguments:
  • Unreasoned decision: The Agency failed to comply with the Court’s order to carry out a comprehensive investigation and merely repeated its previous refusal.
  • Non-compliance with the law: The Agency did not provide sufficient evidence to justify its decision and failed to consider the principle of proportionality between private and public interests.
  • Balance of interests: We stressed that the refusal was unjustified and violated the client’s lawful rights, whereas her professional activities in Georgia posed no threat to state or public security.

Case Timeline:
  • October 21, 2022: Ms. Elizaveta S. applies for a residence permit.
  • November 20, 2022: The Agency refuses to grant the residence permit.
  • March 23, 2023: The Tbilisi City Court partially upholds the claim and orders the Agency to reconsider the case.
  • May 24, 2023: The Agency issues another refusal.
  • November 22, 2023: The Tbilisi City Court fully upholds our claim.
4. Outcome
Our claims were fully satisfied. The Court declared the Agency’s decision invalid and ordered it to issue a new administrative act granting Ms. Elizaveta S. a work residence permit in Georgia. The Agency was also ordered to reimburse litigation costs in the amount of 100 GEL.
Court: Tbilisi City Court
Attorney on the case: Nika Gogiashvili
Date of decision: November 22, 2023
Result: Refusal annulled; Agency ordered to grant residence permit
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MARIA GUSEINOVA
Leading Manager of Commercial Department