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

of December 1, 2011 No. 234

About some questions of application by economic courts of regulations of the civil legislation on property hiring (lease)

For the purpose of ensuring the correct and uniform application by courts of regulations of the civil legislation on property hiring (lease) by consideration of the disputes following from lease agreements, being guided by article 47 of the Law of the Republic of Uzbekistan "About courts", the Plenum of the Supreme Economic Court of the Republic of Uzbekistan decides:

1. In case of the dispute resolution, following from agreements of property hiring (lease) (further - the lease agreement), courts shall be guided by the Civil code of the Republic of Uzbekistan (further - group of companies), the Law of the Republic of Uzbekistan "About lease" (further - the Law) and other acts of the legislation containing regulations on lease.

2. The main document governing the relations of the lessor with the employer is the lease agreement. In case of assessment of provisions of the lease courts shall consider that owing to part one of Article 364 of group of companies the agreement is considered the prisoner if between the parties in the form required in proper cases the agreement on all essential terms of the contract is reached.

3. Courts should mean that according to part one of Article 537 of group of companies objects of lease, in addition to listed in the specified Article, can be as well other inconsumable things. The things intended for numerous use, keeping at the same time the original form for a long time, and which are wearing out gradually are recognized inconsumable (furniture, household appliances, etc.).

4. According to Article 539 of group of companies the lease agreement for the term of more than one year and if at least one of agreement parties is the legal entity - irrespective of term, shall be concluded in writing. Proceeding from it, courts by hearing of cases of this category in each case should request the agreement.

Draw the attention of courts that according to part two of Article 539 of group of companies state registration of lease agreements of real estate is obligatory. Exception of this rule are the lease agreements of buildings and constructions concluded for the term of less than a year.

The procedure and terms of state registration of lease agreements of real estate are regulated by the legislation.

Non-compliance with the requirement about state registration of the lease agreement of real estate attracts its invalidity based on Article 112 of group of companies. At the same time effects of invalidity of transactions, stipulated in Article 114 groups of companies are applied.

At the same time, courts should mean that in case of evasion of one of the parties from state registration of the transaction other party has the right to take a legal action with the requirement about compulsion to registration of the lease agreement.

According to part one of Article 384 of group of companies the agreement on change of the agreement is made in the same form, as the agreement if from the legislation, the agreement or business customs other does not follow. Proceeding from it, the agreement of the parties on change of the lease agreement of the real estate which is subject to state registration, being integral part of the agreement, is also subject to registration.

Requirements of the civil legislation on state registration of the lease agreement extend also to the agreement of the sublease.

5. Proceeding from sense of Article 538 of group of companies can be the lessor the owner of property or person authorized by the law or the owner to rent property. For clarification of question of whether the lessor is owner of property, courts need to request documents of title on property (the certificate on state registration of the property right, the purchase and sale agreement, cadastral documents, technical data sheet on the vehicle and others), authentically testimonial that the lessor also is the owner of property.

Courts should mean that the state-owned property is provided in lease only through the centers of lease of state-owned property in the form of the state unitary enterprises in case of Agency on management of the state assets of the Republic of Karakalpakstan, territorial administrations Agency on management of the state assets of the Republic of Uzbekistan in areas and Tashkent according to the Regulations on procedure for provision in lease of state-owned property approved by the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of April 8, 2009 No. 102 "About measures for enhancement of procedure for transfer to lease of state-owned property", except as specified, stipulated by the legislation.

6. According to Article 540 of group of companies agreement parties of property hiring by the general rule are granted the right to determine lease term, at the same time the condition about lease term is not essential. By consideration of the disputes connected with lease term, courts should consider that the parties shall determine these terms taking into account the restrictions provided in the acts of the legislation governing the rent relations.

If the maximum (extreme) term of the agreement for separate agreement types of property hiring is established by the law, and the agreement is signed for the term exceeding the established deadline, then such agreement is considered the prisoner for the term equal limiting.

If the minimum (limited) term of the agreement for separate agreement types of property hiring is established by the law, and the agreement is signed for term, below the established minimum term, then such agreement is considered insignificant according to Article 116 of group of companies.

7. According to part three of Article 541 of group of companies if other is not provided by the agreement, the property is rented together with all its accessories and documents (technical data sheet, the quality certificate, etc.) relating to it. If the property is transferred without documents, and without them the employer cannot use property according to its appointment or substantially loses what had the right to expect in case of the conclusion of the agreement, the lessor has no right to require the rent while the employer has the right to demand provision to it such accessories and documents or agreement cancelation, and also indemnification.

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