Plenary meeting of the Supreme Economic Court

Partners of ‘Kosta Legal’ took part in the regular session of the plenary meeting of the Supreme Economic Court of Uzbekistan hold on December 11, 2015. The experts of ‘Kosta Legal’, judges of Economic Courts across the Republic, prominent scholars and representatives of governmental bodies discussed application of the Law ‘On Financial Lease’ for clarification of its most ambiguous provisions. As a result of the meeting, the Resolution was made that will allow judges of Economic Courts to consistently apply the Law throughout the country and will increase business certainty.

The final draft of the Resolution includes a huge number of clarifying provisions drafted based on recommendations of ‘Kosta Legal’ lawyers, significantly improving the application practice. Thus, for instance, it is clarified in the Resolution that financial lease is different from hire-purchase and installment sale that guides judges to apply a different set of laws and regulations. It is furthermore explained that ‘significant breach’ of a lease agreement is, in particular, non-payment of two consecutive lease payments irrespectively of their actual amount.