RESOLUTION OF THE JOINT PLENUM SUPREME AND THE HIGHEST ECONOMIC COURTS OF THE REPUBLIC OF UZBEKISTAN

of October 25, 2002 No. 20/107

About some questions of application in court practice of acts of the legislation directed to support of subjects of small business and private entrepreneurship

Protection of the rights and interests of subjects of small business and private entrepreneurship, stimulation of their activities is one of the priority directions of the economic reforms performed in the republic.

As shows experience of application in court practice of the legislation directed to support of subjects of the specified sphere, courts generally correctly and with observance of requirements of the law resolve cases on recovery of their violated rights, compensation of the material and moral damage caused to them.

At the same time, in case of the dispute resolution with participation of subjects of entrepreneurship, there are some problems on exact and uniform application of the legislation. So incomplete reflection in the procedural legislation of bases of activities of the bodies which are taking a legal action with the claim for the benefit of subjects of entrepreneurship, lack of single court practice on jurisdiction of disputes become the reason of excessive red tape in case of the appeal of subjects of entrepreneurship to courts. Mistakes are made and in case of permission of questions of indemnification for causing damage of their goodwill.

For the purpose of elimination of the available shortcomings, according to articles 17 and 47 of the Law of the Republic of Uzbekistan "About courts", the joint Plenum Supreme and the Highest economic courts of the Republic of Uzbekistan decides ensuring protection of the rights and legitimate interests of subjects of small business and private entrepreneurship:

1. Draw the attention of courts to need of strict observance of requirements of the current legislation by hearing of cases with participation of subjects of small business and private entrepreneurship.

2. Explain to courts that in case of determination of legal status, the rights, freedoms and privileges of subjects of small business and private entrepreneurship, the main legal sources are the Civil code of the Republic of Uzbekistan and the Law of the Republic of Uzbekistan "About guarantees of freedom of business activity".

According to the Law of the Republic of Uzbekistan "About Dehkan economy", activities in Dehkan economy belong to business activity and can be performed at the request of his members both with education, and without formation of legal entity. As the subject of business activity the Dehkan economy has the rights and obligations established by the legislation.

According to the Law of the Republic of Uzbekistan "About farm", farm, being one of forms of the business activity having the right to perform the business activity answering the purpose for which achievement it is created.

By consideration of cases by courts and determination to such categories of business entities of the provided privileges, stipulated by the legislation, first of all it is necessary to establish - whether they are subjects of small business and private entrepreneurship about what it is necessary to specify in the corresponding court resolutions.

According to the Law of the Republic of Uzbekistan "About family entrepreneurship" family company is the small business entity created by his participants on voluntary basis based on the common property which is in equity or joint property of members of family company, and also property of each of members of family company for implementation of production and sales of goods (works, services). Activities of family company are based on personal labor of his participants. The family company is one of forms of business of subjects of entrepreneurship

3. To courts, in case of permission of questions of cases with participation of subjects of small and medium entrepreneurship, Dehkan and farms, it is necessary to pay attention to nature and subject structure of disputable legal relationship.

The disputes arising in the economic sphere from civil, administrative and other legal relationship between the legal entities, citizens who are performing business activity without formation of legal entity and having the status of the individual entrepreneur acquired in the procedure established by the law are subordinated to economic courts. If in the specified disputes of one of the parties the citizens (family contractors) which are not registered in the procedure established by the law as entrepreneurs or who do not have the status of the legal entity are, such claims for jurisdiction are subject to consideration in courts of law.

Cases on disputes between participants, participants and economic partnerships and societies, including between shareholders, the shareholder and the joint-stock company following from activities of economic partnerships and societies (except for employment disputes) are subordinated to economic courts.

Specify that according to part 3 of article 13 of the Law of the Republic of Uzbekistan "About guarantees of freedom of business activity of the claim to refusal in state registration as the subject of business activity, and also violation of terms of registration are subordinated to courts of law.

Explain to courts that cases on recognition of the individual entrepreneur by the bankrupt are subordinated to economic courts.

Courts, by hearing of cases in claims of subjects of the business activity having the right to consider together with the underlying suit also the requirement about compensation of the moral harm done to goodwill. Suit abatement or refusal in adoption of the action for declaration on the ground that such requirement is subordinated to other court, are not allowed.

4. According to part 9 of Article 100 of the Civil code of the Republic of Uzbekistan and part 3 of article 35 of the Law of the Republic of Uzbekistan "About guarantees of freedom of business activity" the claim for compensation of the moral harm done to subjects of small and medium entrepreneurship Dehkan and to farms, can be satisfied only when discrediting their goodwill.

5. Explain to courts that if in case of adoption of claims to refusal in state registration or violation of terms of registration and the solution of question of initiation of proceedings together with this requirement is put question of compensation of the material and moral harm done owing to such actions (failure to act), case is subject to consideration in claim procedure.

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