RESOLUTION OF THE PLENUM OF THE SUPREME ECONOMIC COURT OF THE REPUBLIC OF UZBEKISTAN

of October 18, 1994 No. 28

About some questions of cognizance (jurisdiction) of disputes to economic courts

For the purpose of providing the correct and uniform solution of the questions of cognizance (jurisdiction) of the disputes arising in the course of business activity and following from civil legal relationship or from legal relationship in the field of management the Plenum of the Supreme Economic Court of the Republic of Uzbekistan, being guided by Art. 46 of the Law of the Republic of Uzbekistan "About courts",

DECIDES:

1. Cognizance (jurisdiction) of the declared requirement is determined according to the competence of economic court established by legal acts of the Republic of Uzbekistan.

In cases when in the legal act cognizance (jurisdiction) is determined alternatively (to court or economic court) or when there is specifying about consideration of the requirement judicially, it is necessary to proceed from the subjective list of participants and nature of disputable legal relationship if other is not provided by the law.

According to Art. 2 of the Economic Procedure Code of the Republic of Uzbekistan in the economic courts having the right to address for protection the violated or disputed rights or legitimate interests of the company, organization and organization, including the kolkhozes, sole, joint businesses and international associations of the organizations of the Republic of Uzbekistan and other states founded on different patterns of ownership and also the state and other bodies, other persons in the cases provided by legal acts of the Republic of Uzbekistan. Citizens entrepreneurs have the right to appeal to economic court also. At the same time it must be kept in mind what entrepreneurial is recognized initiative, within the current legislation the activities of subjects of property directed to production of goods and rendering services and profit earning or the income. The citizen acquires the status of the entrepreneur by state registration. The document confirming availability of the similar status is the certificate on state registration.

The economic court resolves the disputes arising in case of the conclusion, change, execution and the termination of economic agreements, and also the disputes following from legal relationship in the field of management specified in pct 2 and 3 of Art. 12 of the Economic Procedure Code. The economic court has the right to consider also other disputes if it is established by legal acts.

2. To economic court, in particular, are jurisdictional disputes (are subordinated):

a) in connection with protection of interests of the owner in case of the termination of its rights on the bases provided by the law if owner is the organization or the citizen entrepreneur;

b) about reclamation of property from others adverse possession and about noise elimination to ownership in cases when owner and person who, according to the owner, violated its right is the organization or the citizen entrepreneur if the dispute arose concerning the property necessary for it for implementation of business activity;

c) in connection with separation, allocation, merge, accession, transformation of the companies, except the disputes carried to competence of general court;

d) between banks, and also between banks and their clientele if client is the organization or the citizen entrepreneur;

e) in connection with disagreement of one of the parties with the decision of regional authorities on land dispute when disputes took place between the companies, organizations, the organizations, citizens entrepreneurs (Dehkan farms);

e) the receivership proceeding connected with land relations except the disputes carried to competence of general court;

g) between lessees and lessors concerning the conclusion, execution and the termination of lease agreements, except the disputes carried to competence of general court.

3. According to Art. 21 of the Law of the Republic of Uzbekistan "About privatization and privatization" the dispute resolution on the questions connected with privatization and privatization is performed judicially.

The power of decision about privatization and privatization allocates managers of objects of state-owned property. The initiative in carrying out privatization, privatization of the company can proceed also from citizens, non-state legal entities, labor collective which have the right to submit the corresponding application in this case. The decision of the manager of objects of state-owned property (State Property Committee) about satisfaction or about refusal in satisfaction of the request for privatization, privatization is the act of public administration which does not have normative nature and consequently the dispute on recognition its invalid in the claim of the interested organization is subject to consideration in economic courts.

If the body of the State Property Committee does not observe the monthly term established by the law 2 for decision making according to the request or the decision is made on cession of property in property to another, and in essence according to this request there is no answer, the applicant has the right to appeal behind protection to economic court. Considering such address the economic court can oblige relevant organ of the State Property Committee to make the decision on the substance of the submitted application, and the made decision to nullify.

The official who shall perform this decision bears the responsibility established by the law for non-execution of the decision of general court for non-execution of the decision of economic court.

4. According to item 2 of Art. 31 of the Law of the Republic of Uzbekistan "About the exchanges and exchange activities" the disputes arising between participants of stock exchange transactions on the questions provided by rules of stock exchange trading are permitted by exchange disputes committee, and in case of disagreement with its solution of one of the parties - the relevant economic court.

The bodies performing state registration of the exchanges and issue of licenses to participants of exchange activities, having the right to suspend activities of the exchange and action of the license for a period of up to three months in the cases provided in the specified Law. If the exchange violation of provisions of this Law monitoring bodies the suit for liquidation of the exchange having the right to commence in the Supreme Economic Court of the Republic of Uzbekistan continues.

To economic court, within its competence, are jurisdictional disputes on collection of penalties for violation of the exchange legislation and rules of stock exchange trading (are subordinated). At the same time it must be kept in mind that the state bodies which made such claims are exempted from payment of the state fee.

5. To economic courts are jurisdictional cases on recognition of the subject of managing by the bankrupt (are subordinated) (the p. 3 of Art. 1 of the Law of the Republic of Uzbekistan "About bankruptcy").

It must be kept in mind that the Law "About Bankruptcy" extends to the property relations of the legal entities and physical persons which are engaged in the territory of the Republic of Uzbekistan in economic activity irrespective of patterns of ownership including subjects of managing of other states.

The Law understands inability of the subject of managing to meet requirements of creditors for payment of goods (works, services) as bankruptcy, including inability to provide obligatory payments in the budget and off-budget funds, in connection with excess of obligations of the debtor over its property.

The law "About Bankruptcy" is not applied to the companies (organizations) performing the activities at the expense of means of the government budget of the Republic of Uzbekistan.

Initiation of production in economic court on the case of bankruptcy it is performed by means of the statement of the debtor or the creditor (creditors) which can be both legal, and physical persons, and also the prosecutor.

Bankruptcy proceeding is regulated by the Economic Procedure Code of the Republic of Uzbekistan, except for the features provided by the Law "About Bankruptcy".

6. Disputes of foreign investors and the companies with foreign investments with the companies, public organizations and other legal entities and physical persons which are engaged in business activity and also disputes between investors and the companies with foreign investors for the questions connected with their activities are subject to consideration in economic courts of the Republic of Uzbekistan.

7. Cognizance (jurisdiction) of dispute to economic court is checked by the judge in case of acceptance of the action for declaration, and after initiation of proceedings in meeting of economic court.

Refusing adoption of the action for declaration in view of the fact that it is not subject to permission in economic court the judge according to Art. 61 of the Economic Procedure Code shall take out motivated determination which goes to the parties, to the prosecutor is five days from the date of receipt of the statement not later. Claim materials are applied to the determination directed to the applicant.

On the same basis the economic court stops proceeedings about what takes out determination according to Art. 76 of the Economic Procedure Code.

The party has the right to file petition for check of legality and justification of the specified determinations.

8. To give to economic courts of the Republic of Karakalpakstan and areas more attention to questions of cognizance (jurisdiction) of disputes to economic court, to systematically carry out generalization which results to discuss at the operational meetings.

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