Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

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

of August 24, 1995

About recommendations of the Supreme Economic Court of the Republic of Uzbekistan about initiation of proceedings of bankruptcy

Presidium of the Supreme Economic Court of the Republic of Uzbekistan, having considered the recommendations about initiation of proceedings of bankruptcy in court prepared by department of instructing, generalization of court practice and codification of the legislation

DECIDES:

1. The recommendations about initiation of proceedings of bankruptcy in court prepared by department of instructing, generalization of court practice and codification of the legislation of the Supreme Economic Court of the Republic of Uzbekistan to approve.

2. Charge to department of instructing, generalization of court practice and codification of the legislation to distribute the above-named recommendations about initiation of proceedings of bankruptcy to economic court of the Republic of Karakalpakstan, economic courts of areas.

3. It is more often to economic court of the Republic of Karakalpakstan, economic courts of areas to analyze practice of hearing of cases about bankruptcy, by results of generalization to inform the Supreme Economic Court on the new questions arising during application of the Law of the Republic of Uzbekistan "About bankruptcy".

 

Chairman

Supreme Economic Court

Republic of Uzbekistan

 

 

M. Abdusalamov

Secretary of Presidium,

judge of the Supreme Economic Court

Republic of Uzbekistan

 

 

Sh. Sultanov

Recommendations about initiation of proceedings of bankruptcy in court

Transition of Uzbekistan to the market relations and the constitutional fixing of this provision demanded legal regulation of activities (bankruptcy) of the companies.

On May 5, 1994 the Supreme Council (Oliy Majlis) of the Republic of Uzbekistan adopted the Law "About Bankruptcy". Introduction it in action eliminated gap in legal regulation of the economic relations connected with recognition of insolvent subjects of managing by bankrupts.

The purposes and tasks of application of the law are stated in its preamble. In it it is told that "the law determines conditions and procedure for recognition of legal entities and physical persons - subjects of managing - bankrupts for the purpose of satisfaction of claims of creditors" (paragraph 1 of the law), "creates the legal basis for voluntary or involuntary liquidation of the insolvent subject of managing if holding reorganization procedures is economically inexpedient or they did not yield positive result" (paragraph 3 of the law).

The law consists of 35 parts and five Sections:

1. General provisions;

2. Extrajudicial procedures;

3. Bankruptcy proceeding;

4. Liquidating production;

5. The voluntary settlement in liquidating production.

The Section "Bankruptcy proceeding" which determines procedure for consideration of this category of cases in economic court is central. At the same time the law in the Section "General provisions" in Article 1 underlines that the subject of managing is considered bankrupt after recognition of the fact of bankruptcy by economic court or after the official announcement of it the subject of managing in case of its voluntary liquidation.

In case of initiation of proceedings about bankruptcy courts shall be guided by the general provisions enshrined in article 1 of the law and opening the concept "bankruptcy" and its signs.

The court shall understand inability to meet requirements of creditors (works, services) as bankruptcy of the subject of managing, including inability to provide obligatory payments in the budget and off-budget funds, in connection with excess of cost of debt obligations of the debtor over the cost of its property.

The court shall understand suspension of its current payments as external sign of bankruptcy of the subject of managing if the subject of managing does not provide or obviously is not capable to provide fulfillment of requirements of creditors within three months from the date of approach of terms of their execution.

Before initiation of proceedings about bankruptcy the law gives opportunity to the debtor in coordination with creditors to agree or about continuation of activities of the subject of managing debtor, or to introduce the decision on its voluntary liquidation without appeal to the court.

However it is necessary to notice that the law does not treat extrajudicial procedures as obligatory for subjects of managing debtors. As it is seen from article 4 of the law, it is the right of debtor enterprise. Therefore in case of initiation of proceedings about bankruptcy courts have no right to demand from debtors subjects of managing of obligatory observance of extrajudicial procedures.

In case of the solution of question of initiation of proceedings on bankruptcy courts shall check availability of circumstances with which the law (Article 7) connects possibility of initiation of such cases:

- inability of the subject of managing to satisfy the claim requirements recognized by it within three months or to pay debt according to executive documents;

- excess of cost of debt obligations over property value of the subject of managing;

- recognition by the subject of managing of the economic insolvency.

According to article 7 of the law the basis for initiation of proceeedings by court about bankruptcy of the company is the statement of the debtor, the creditor (creditors), and also the prosecutor. The banks which issued the credits, the state tax authorities controlling receipts of obligatory payments and also other legal entities having requirements to the subject of managing on payment of goods and services can act as creditors. According to the Economic Procedure Code of the Republic of Uzbekistan the right to initiate proceedings on bankruptcy on own initiative is not this to economic courts.

In case of adoption of statements from the debtor, the creditor, the prosecutor for initiation of proceedings about bankruptcy the court shall demand applications of documents, provided by the law. So, according to article 8 of the law the balance sheet of the subject of managing, the list of his creditors and debtors, its financial and property status other information are enclosed to the application of the debtor. At the same time the court should have in the Veda that return of the statement of debtor enterprise without consideration cannot be applied in cases of non-presentation by the applicant of the balance sheet or the accounting documents replacing it.

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.