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RESOLUTION OF THE SUPREME ECONOMIC COURT OF THE REPUBLIC OF UZBEKISTAN

of May 12, 2006 No./13549

(extraction)

Obligations shall be fulfilled properly in accordance with the terms of the obligation and requirements of the legislation.

JSC K appealed to economic court with the claim to KN LLC for agreement cancelation of car rental and about reclamation of property from others adverse possession.

During consideration of the case by the defendant the counter action for declaration about collection from the claimant of 3619697 bags constituting compensation amount of costs of the lessee for repair and servicing of the leased car, 120000 bags - penalty for early agreement cancelation of lease and 500000 bags - the losses connected with recovery of the violated right is submitted.

Requirements of the claimant are met by the judgment completely. The demand in reconvention is met regarding collection with JSC K for benefit of KN LLC of 3619697 bags of principal debt and penalty in the amount of 60000 bags. Other part of the counter action it is refused.

The decision is changed by the resolution of appellate instance. Satisfaction of the counter action regarding recovery of penalty for early agreement cancelation it is refused. In other part the decision is left without change.

The claimant, disputing the collected amount in the amount of 3619697 bags appealed to the Supreme Economic Court with the writ of appeal about change of court resolutions.

Judicial board, having studied case papers, having discussed arguments of the writ of appeal, considers the claim unreasonable on the following bases.

According to p.1 Art. 554 of RUZ Group in case of termination of the contract of property hiring the employer shall return to the lessor property in that condition in which he received it, taking into account ordinary wear and tear or in the condition caused by the agreement.

According to Art. 236 of RUZ Group of the obligation shall be performed properly in accordance with the terms of the obligation and requirements of the legislation.

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