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The document ceased to be valid since November 13, 2015 according to Item 2 of the Resolution of the Plenum of the Supreme Court of the Republic of Uzbekistan and the Plenum of the Supreme Economic Court of the Republic of Uzbekistan of November 13, 2015 No. 17/288

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

of April 28, 2000 No. 2/84

About court practice of application of the legislation connected with business activity

(as amended on 03-10-2014)

Creation of conditions for free participation and interest of citizens in business activity, increase in their business activity, and also protection of the rights and legitimate interests of subjects of entrepreneurship are provided with observance and the correct application of the legislation in this sphere.

However courts not fully react to the facts of substitution of the laws the departmental regulations contradicting the laws, limiting the rights and legitimate interests of entrepreneurs and also to the facts of unreasonable intervention of officials in activities of entrepreneurs, illegal refusal in registration of small businesses and private entrepreneurship, untimely consideration of claims and statements of entrepreneurs and decision making on them.

Studying of specific cases testifies to the wrong qualification of plunder of alien property, abuse of official or official position. There is no single office practice on cases on illegal issuance of credits and their untimely return, the pledge role as method of providing obligations and effective measure of suppression is underestimated.

On number of cases in case of assignment of punishment compensation of the caused damage is not admitted by the circumstance which is exclusively extenuating to fault.

For the purpose of elimination of the available shortcomings, ensuring protection of the rights and legitimate interests of entrepreneurs the Plenum of the Supreme Court and the Plenum of the Supreme Economic Court, being guided by articles 17 and 47 of "The law on courts" the Republic of Uzbekistan, decide:

1. Draw the attention of courts to need of exact observance of requirements of the legislation governing the relations in the field of entrepreneurship, meaning that its violations interfere with development of the market relations, legal business activity, in particular small businesses and private entrepreneurship.

2. Explain to courts that in case of the dispute resolution departmental regulations, the provisions and instructions contradicting the laws cannot be applied and are the basis for accusation.

3. According to article 53 of the Constitution of the Republic of Uzbekistan the basis of the economy of the country is constituted by property in its different forms. The property right is the absolute right which assumes prohibition on any actions infringing this right.

In society the situation of respect of the property right shall be created, any infringement of it shall attract inevitable responsibility and punishment.

According to article 54 of the Constitution of the Republic of Uzbekistan the subjective right of possession, uses and orders of property belongs only to the owner of this property. According to Article 182 of the Civil code the basis of acquisition of property along with other bases is also business activity. Any intervention in implementation of the property right which is not based on the law is its gross violation.

The actions of officials expressed, for example, in the illegal order by property of the farmer, other person who is engaged in business activity if they did major damage or essential harm to the rights or interests of the owner protected by the law, form actus reus - authority misuse or ex-officio full powers. Conclusion about materiality of harm shall be reasoned by court on each specific case.

At the same time the owner concerning whose property illegal actions are allowed has right to collection of material damage including lost profit, and also moral harm.

Moral harm is compensated irrespective of the property harm which is subject to compensation. The amount of compensation of moral harm is determined by court in each case.

4. Pay attention that the Law of December 24, 1998 "About the state control of activities of business entities" guarantees non-interference of monitoring bodies to activities of business entities, determines the bases, frequency, terms of conducting checks.

According to article 9 of this law the basis for conducting checks of financial and economic activities of business entities by law enforcement agencies is only availability of the brought criminal case.

If officials of monitoring bodies find violations of the law of activities of subjects of entrepreneurship, they have the right to take only those measures on which they are authorized and which are directly connected with elimination of specific violation. Officials of monitoring bodies cannot use the violation availability fact as the basis for intervention or restriction of other legal activities of subjects of entrepreneurship.

With respect thereto courts shall react to violations of the law on the matter. In case of establishment of the facts of illegal intervention in activities of the entrepreneur because of mercenary or other low motives of action of guilty persons shall be qualified under the relevant articles of the Criminal code providing responsibility for crimes against procedure for management. The court shall explain also to participants of process the right of the entrepreneur to collection from the guilty person of all losses caused, for example, by the suspension of production which followed as a result of illegal intervention in its activities.

Courts should mean that "About guarantees of freedom of business activity" check of activities of subjects of entrepreneurship is limited to article 39 of the Law of the Republic of Uzbekistan, that is according to requirements of this Law, check of activities of the subject of entrepreneurship can be performed by monitoring bodies in planned procedure based on the decision of specially authorized body on coordination of activities of monitoring bodies not more often than once a year, except for the private enterprises and cases provided by parts two - the sixth specified Article.

Checks of activities of subjects of entrepreneurship, timely and in full respecting the established rules and rules, are performed by monitoring bodies not more often than once in two years, except as specified, provided by this Article.

Checks of activities of private enterprises can be performed by monitoring bodies in accordance with the established procedure not more often than once in two years, except cases, stipulated by the legislation.

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