Article 27. Disputes within the competence of arbitration courts

The party to the dispute must necessarily be an organization, entrepreneur or government bodies (for example, a dispute with the Federal Antimonopoly Service of Russia regarding the city of Moscow). Individuals can be participants in arbitration proceedings only in specific cases, for example, if the dispute arose from the ownership of shares in a commercial organization; bankruptcy of a citizen is also considered by arbitration courts. The arbitration court does not consider family or labor disputes; the task of the arbitration court is to resolve conflict situations related to business activities.

What are arbitration disputes

A dispute related to business or other economic activity is an arbitration dispute.

The main criteria for jurisdiction listed in the Arbitration Procedure Code (APC):

1. the nature of the case (the dispute arises from business relations),
2. composition of participants (parties are either legal entities or individual entrepreneurs).

The arbitration court cannot consider a case that does not arise from economic activity (from labor, family, housing and other legal relations).

For example, an arbitration court cannot consider an application by an individual entrepreneur or legal entity to challenge a decision to hold him administratively liable for violating the Traffic Rules, even if his business activity is related to driving a vehicle when transporting goods.

Commentary to Art. 27 Arbitration Procedure Code of the Russian Federation

1. When characterizing the rules of jurisdiction, let us pay attention to the following circumstances.

Firstly, in the APC of 2002, while maintaining certain controversial and related issues of jurisdiction, the understanding of the main criterion of jurisdiction as the nature of the controversial legal relationship and the content of the dispute (case) was finally formed - whether the subject of the dispute is connected or not with business or other economic activity. The criterion of subject composition, although it remained, gradually faded into the background, thereby ensuring the specialization of each of the courts of civil jurisdiction.

Accordingly, the jurisdiction of arbitration courts has expanded, in particular, in the field of corporate relations and in protecting the rights of large groups (Chapters 28.1 and 28.2 of the APC), new categories of cases have appeared that were not previously considered by arbitration courts (for example, on challenging decisions of arbitration courts - Article 31 and Chapter 30 of the APC), or the jurisdiction over cases previously considered by arbitration courts, in particular, in the field of normative control (see Article 29 and Chapter 23 of the APC), in the recognition and execution of decisions of foreign courts and arbitrations, has become fundamentally wider . The main criterion, although not in all cases, is increasingly the nature of the dispute and the content of the legal relationship from which the dispute arose, along with the legal status of the parties.

Secondly, certain categories of cases are assigned to the special jurisdiction of the arbitration court, regardless of the subject composition and other criteria (see Art. 33, 225.1). These are very important innovations that make it possible to eliminate conflicts in the area of ​​jurisdiction with courts of general jurisdiction and ensure uniform consideration of certain categories of cases.

Thirdly, with the exception of cases assigned to the special jurisdiction of arbitration courts, the rules for multiple jurisdiction of a number of categories of cases to courts of general jurisdiction and arbitration courts, depending on the criterion of the subject composition, have been preserved. For example, cases of civil legal relations (except for those listed in Article 33 of the Arbitration Procedure Code) are still subject to the jurisdiction of arbitration courts if the parties to the dispute are legal entities and (or) citizens with the status of individual entrepreneurs. In other cases, they fall under the jurisdiction of courts of general jurisdiction. However, having been initiated in an arbitration court in accordance with the rules of the commented article, such cases no longer change their jurisdiction in the future and are considered in the arbitration process.

The understanding of jurisdiction in the field of enforcement proceedings has also changed (see commentary to Article 329), especially after the adoption of the new edition of the Federal Law “On Enforcement Proceedings” in 2007.

Fourthly, the consequences of involving citizens who do not have the status of an individual entrepreneur in the arbitration process as third parties without independent claims have changed. If, according to the Arbitration Procedure Code of 1995, this led to the termination of proceedings in the case due to the lack of jurisdiction of the arbitration court, now, according to Part 4 of this article, the case in any case is subject to consideration in the arbitration court that accepted it for proceedings.

Fifthly, the procedure for transferring cases that fall under the exclusive jurisdiction of arbitration courts from the proceedings of courts of general jurisdiction is allowed, since the rules of § 1 Ch. 4 were put into effect in a special manner - ten days from the date of official publication of the new APC.

According to Art. 7 of the Federal Law “On the entry into force of the Arbitration Procedure Code of the Russian Federation” (hereinafter referred to as the Introductory Law), cases that are being processed by courts of general jurisdiction and which, in accordance with the Arbitration Procedure Code, are assigned to the jurisdiction of arbitration courts, within two weeks from the date of entry into force of § 1 “Jurisdiction » Ch. 4 of the APC, with the consent of the plaintiffs, are transferred to courts of general jurisdiction in accordance with the rules of jurisdiction established by the APC and in force at the time of transfer of the case.

If the plaintiff does not agree to the transfer of his case by a court of general jurisdiction to an arbitration court, then the court of general jurisdiction should have terminated the proceedings due to the lack of jurisdiction of the court of general jurisdiction. The last provision of Art. 7 of the Introductory Law needs clarification, since neither the Civil Procedure Code (Article 220) nor the Arbitration Procedure Code (Article 150) provide for such grounds for termination of proceedings as lack of jurisdiction. The proceedings are terminated due to the fact that the case is not subject to consideration in this court system, which in turn includes lack of jurisdiction.

The same rules were established in connection with clarification of the rules of jurisdiction in corporate disputes in accordance with the Federal Law of July 19, 2009 N 205-FZ “On Amendments to Certain Legislative Acts of the Russian Federation” (hereinafter referred to as Federal Law N 205-FZ). Cases that fall under the jurisdiction of arbitration courts in accordance with the rules provided for by the APC and that are being processed by courts of general jurisdiction on the day Federal Law No. 205-FZ comes into force are subject to consideration by courts of general jurisdiction according to the rules established by civil procedural legislation (clause 6 of Art. 15 Federal Law N 205-FZ).

Courts of general jurisdiction refuse to accept applications for cases within the jurisdiction of arbitration courts of the agrarian and industrial complex (as amended by Federal Law No. 205-FZ) that were received before the date of entry into force of Federal Law No. 205-FZ and were not accepted for proceedings by courts of general jurisdiction on the day of entry into force of the Federal Law N 205-FZ, due to the lack of jurisdiction of such cases by courts of general jurisdiction on the basis of paragraph 1 of part 1 of Art. 134 Code of Civil Procedure (Clause 7 Article 15 Federal Law No. 205-FZ).

Sixthly, the procedural and legal consequences of the lack of jurisdiction of the case by the arbitration court have fundamentally changed. In the APC there are no grounds for refusing to accept a statement of claim (including due to lack of jurisdiction), since the establishment of the circumstances of the case indicating the absence of the right to go to court is carried out in a court hearing and may be the basis for terminating the proceedings (p 1 part 1 article 150 of the APC). The temporary lack of jurisdiction of the case by the arbitration court, associated with non-compliance with the claim procedure, is the basis for either leaving the application without progress (Part 1 of Article 128 of the Arbitration Procedure Code) or for leaving the application without consideration (Part 2 of Article 148 of the Arbitration Procedure Code). Accordingly, the defendant has the right to raise objections against the plaintiff, justifying the lack of jurisdiction of the case to the arbitration court.

Seventh, a number of provisions on jurisdiction come into force only after the adoption of the relevant Federal Laws. In particular, according to Part 1 of Art. 29 and part 3 of Art. 191 of the Arbitration Procedure Code, cases of challenging regulatory legal acts affecting the rights and legitimate interests of the applicant in the field of business and other economic activities are within the jurisdiction of arbitration courts if the Federal Law places their consideration within the competence of the arbitration court (see the commentary to Article 29 of the Arbitration Procedure Code for more details).

2. Part 2 art. 27 connects the jurisdiction of cases to the arbitration court, as a general rule, not only with the nature of the controversial legal relationship, but also with its subject composition, namely the legal status of the parties, which makes it possible to more accurately distinguish the jurisdiction between two judicial authorities: courts of general jurisdiction and arbitration courts. The subjects of disputes with the participation of which cases are considered by arbitration courts include the following.

Firstly, legal entities, i.e. organizations that have separate property in ownership, economic management or operational management and are liable for their obligations with this property can, in their own name, acquire and exercise property and personal non-property rights, bear responsibilities, be a plaintiff and defendant in court (Article 48 of the Civil Code) .

Secondly, citizens carrying out entrepreneurial activities without forming a legal entity and having the status of an individual entrepreneur acquired in the manner prescribed by law (see Article 23 of the Civil Code). For an economic dispute to be within the jurisdiction of the arbitration court, it is necessary that the dispute arises between citizen-entrepreneurs or between an organization and a citizen-entrepreneur. The rule on the jurisdiction of the dispute by the arbitration court remains until the citizen loses the status of an individual entrepreneur.

Thirdly, the Russian Federation, constituent entities of the Russian Federation, municipalities, when they act as participants in civil relations (Article 2, 124 of the Civil Code) or public law relations, disputes from which are within the jurisdiction of arbitration courts.

Fourthly, state bodies, other bodies, officials, prosecutors, when they are granted the right to participate in the arbitration process in order to protect the property interests of the state and the bodies they represent.

Fifthly, in cases established by the APC and other Federal Laws, the arbitration court has jurisdiction over cases involving entities that are not legal entities and citizens who do not have the status of an individual entrepreneur. In this regard, the APC provides for rules of special jurisdiction (Article 33 of the APC).

Sixthly, foreign organizations, international organizations, foreign citizens, stateless persons engaged in entrepreneurial activities, organizations with foreign investments (Part 5 of Article 27 of the APC), unless otherwise provided by an international treaty of the Russian Federation.

3. According to the rule of Part 3 of Art. 27 of the APC, the range of cases within the jurisdiction of arbitration courts is not closed and can be expanded by adopting new Federal Laws. In this case, we are talking about assigning new cases to the jurisdiction of arbitration courts by expanding the rules of special jurisdiction, when this new category of cases does not fall within the jurisdiction of arbitration courts according to general criteria (the nature of the legal relationship and the legal status of the parties), as well as introducing clarifications into the rules, regulating jurisdiction in order to eliminate emerging conflicts of law enforcement.

4. According to Part 4 of Art. 27 of the APC, an application accepted by the arbitration court for its proceedings in compliance with the rules of jurisdiction must be considered by it on its merits, even if in the future a citizen who does not have the status of an individual entrepreneur will be involved in participation in the case as a third party who does not make independent claims regarding subject of dispute. Regardless of the status of new participants in the process entering the case, the arbitration court has the right to consider it to the end and resolve the issue of the rights and obligations of new participants in the process.

5. Rule Part 5 of Art. 27 of the APC determines the jurisdiction of cases involving foreign persons. The question arises of how they relate to the provisions of Part 2 of Art. 22 of the Code of Civil Procedure, which referred cases involving foreign persons to the jurisdiction of courts of general jurisdiction. These provisions should be interpreted in such a way that cases involving foreign persons must be considered by each of the judicial authorities in accordance with their competence. If a dispute involving foreign persons and organizations with foreign investments is of an economic nature and is related to the implementation of entrepreneurial and other economic activities, then it is subject to the jurisdiction of the arbitration court. In other cases, for example, disputes arising from labor and family relations involving foreign persons are subject to the jurisdiction of courts of general jurisdiction.

6. It should be noted that achieving absolute “purity” of the division of jurisdiction between arbitration courts and courts of general jurisdiction is a matter of the future. This is due to the complexity of legislation, lack of consistency in judicial practice and a number of other reasons of an objective and subjective nature.

In a number of cases, based on a broad understanding of the right to judicial protection, arbitration courts accept cases with rather dubious competence. For example, the case of challenging a bailiff’s decision made in consolidated enforcement proceedings, which includes, among others, enforcement proceedings initiated on the basis of certificates of the labor dispute commission, is not within the jurisdiction of the arbitration court. However, in connection with the refusal of the court of general jurisdiction to consider this dispute and taking into account the applicant’s right to judicial protection, the case, in accordance with Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 7131/08 dated October 21, 2008, is subject to consideration in the arbitration court.

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See examples of this kind of cases: Zaitsev R.V. Practice of arbitration courts of the Russian Federation in the consideration of non-jurisdictional cases // Arbitration and civil process. 2008. N 12. P. 28 - 32.

At the same time, in the ECHR Resolution dated July 23, 2009 in the case “Sutyazhnik v. the Russian Federation” (complaint No. 8269/02) regarding the judicial act of the Supreme Arbitration Court of the Russian Federation (Resolution of the Presidium of the Supreme Arbitration Court dated September 26, 2000 No. 3599/00) it was stated that that the decision was overturned in a supervisory procedure, primarily in the interests of legal purism, and not with the aim of eliminating an error that was significant for the judicial system. The basis for the cancellation was an error in the determination of the competent court, since the applicant appealed the cancellation by way of supervision of the arbitration court decision that had entered into legal force, obliging the regional department of the Russian Ministry of Justice to re-register the organization. In the case there was a violation of the requirements of Art. 6 of the Convention for the Protection of Human Rights and Fundamental Freedoms.

What are the ways to resolve arbitration disputes?

Resolution of conflicts between entrepreneurs is carried out in two ways.

The first is pre-trial . When the parties independently make a compromise decision without going to court.

The second is actually judicial . Pre-trial settlement is mandatory before filing a claim. The party intending to initiate a dispute sends a written claim to the opponent. If there is no response, or the opponent refuses to satisfy the claim, you can go to court.

In a sense, the court acts as a third party that will make the final decision on the situation. The assistance of a lawyer if there are signs of an arbitration dispute is useful, since he, the lawyer, is an independent party, and the chances of resolving the conflict before trial increase.

In most cases, the conflicting parties fail to resolve the dispute on their own, since each participant wants to extract the maximum benefit. Then, consideration of the dispute in arbitration court is the only way to resolve the conflict.

Claim proceedings

The majority of disputes are resolved through litigation.

These, in particular, include all civil disputes arising between enterprises and entrepreneurs.

For example, if there is a debt under the contract, then you should apply to the arbitration court.

The same should be done if it is necessary to invalidate the contract.

Appeal to the arbitration court for these categories of disputes is carried out by filing a claim.

It must consist of the name of the court and the parties, a description of the circumstances that prompted the filing of the claim, as well as the content of the claims.

The claim is accompanied by copies of documents confirming the requirements, as well as a document confirming payment of the state duty in the required amount.

If the statement of claim complies with the requirements of the law, then a ruling is made to open proceedings in the case and schedule a court hearing.

The consideration of a case in the arbitration court of first instance within the framework of claim proceedings is schematically carried out as follows:

• First, the judge announces a summary of the stated claims. Then the floor is given to the plaintiff, who introduces the court and the defendant in more detail to his claim.
• After this, the judge and opponent can ask the plaintiff their questions.
• Next, the right to speak is given to the defendant, who can raise his objections to the claim.
• After studying all the circumstances of the case and the available evidence, judicial debate follows. During them, the plaintiff must ask the court to satisfy the claim, and the defendant, accordingly, to refuse it.
• After this, the court leaves to make a decision.
• The decision is announced to the parties at the court hearing. As a rule, the matter is often limited only to the announcement of the very essence of the decision (that is, to satisfy the claim or deny it).
• The parties to the case may receive the full text of the decision after some time.

In case of disagreement with the decision made, it can be appealed through the appellate and cassation procedures, as well as reviewed through the supervisory procedure.

The decision of the court of each instance contains the terms and procedure for its further appeal.

You will probably be interested in looking at the “Loan agreement with the bank” mental map, which describes in detail what the bank must tell the client

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Why do people most often go to arbitration court?

Arbitration disputes are caused by: (a) the conviction of the party to the dispute that its rights have been violated or infringed; (b) inability to reach an agreement with the counterparty; (c) refusal of the guilty party to compensate for damage, losses or pay a penalty.

The following persons apply to the arbitration court:

• when a party to the contract violates the terms of fulfillment of obligations, including failure to comply with deadlines for payment or delivery of goods (provision of services or performance of work);
• to protect the business reputation of a legal entity;
• in order to challenge the ownership of real estate;
• in cases of bankruptcy of legal entities and individuals;
• to collect debts, compensation, penalties, losses;
• to challenge decisions of government bodies.

Procedure and stages of consideration of bankruptcy cases

Consideration of bankruptcy cases in an arbitration court is carried out according to the rules of the Arbitration Procedure Code of the Russian Federation and Law No. 127-FZ. The trial takes place in several stages.

Stage 1 – Applying to the arbitration court for bankruptcy

To initiate a legal dispute regarding the debtor's insolvency, a package of documentation is prepared, which includes an application with attachments.

The application can be submitted by the following persons:

• debtor (Article 37 of Law No. 127-FZ);
• creditor (Article 39 of Law No. 127-FZ);
• an authorized body, for example, the Federal Tax Service, the Social Insurance Fund, the Pension Fund of Russia (Article 41 of Law No. 127-FZ).

The application must be drawn up in accordance with the rules established by articles , , Law No. 127-FZ. If you need to draw up an application on behalf of the creditor and debtor, we suggest using samples prepared by practicing lawyers.

Sample application from a creditor

Sample application from a creditor to declare a debtor bankrupt

Sample debtor's statement

Sample statement from a debtor declaring himself bankrupt

List of documents

The application must be accompanied by the documents listed in articles of Law No. 127-FZ.

The documentation package includes:

• evidence of debt (court decisions, writs of execution, invoices, invoices and other accounting documents);
• postal receipts for sending the application to the debtor and creditors;
• payment order or receipt for payment of state duty;
• TIN and OGRN certificates;
• extracts from the Unified State Register of Legal Entities and the Unified State Register of Individual Entrepreneurs in relation to the applicant and debtor;
• list of creditors;
• list of property;
• other documents.

15 days before the date of filing the application, the debtor is obliged to publish information about the intention to apply to the arbitration court on the EFRSB website.

If the interested party has submitted documents in compliance with the requirements of the law, the court issues a ruling to accept the bankruptcy petition and sets a date for the first court hearing.

You should know! The application must indicate the candidacy of an arbitration manager who carries out professional activities in organizing and supporting bankruptcy procedures (Article 20.3 of Law No. 127-FZ). He must comply with the requirements of Article 20 of Law No. 127-FZ and is appointed by the arbitration court from among the candidates proposed by the self-regulatory organization of arbitration managers, of which he is a member (Article 45 of Law No. 127-FZ).

For his work, the arbitration manager receives remuneration from the debtor’s funds. The remuneration amount ranges from 15,000 to 45,000 rubles. (Article 20.6 of Law No. 127-FZ).

If the application is submitted by the debtor, then the candidacy of the arbitration manager is determined by random selection (clause 5 of Article 37 of Law No. 127-FZ). The selection procedure has not yet been determined. In practice, this issue is dealt with by a self-regulatory organization of arbitration managers.

Stage 2 – Introduction of bankruptcy proceedings before the debtor is declared insolvent

At the first hearing, the court checks whether the application for insolvency is justified.

To introduce the first procedure, the following conditions must be met:

• the presence of outstanding debt from a legal entity from 300,000 rubles, from an entrepreneur or individual from 500,000 rubles, confirmed by accounting documentation, judicial acts and executive documents;
• delay in fulfilling obligations to pay debts for more than three months;
• insufficiency of funds and other property to repay the debt (documents about the debtor’s property are provided to the court when considering the application).

If the application is recognized by the court as justified, bankruptcy proceedings are introduced. For legal entities, the first stage of the process begins - observation, which is supervised by a temporary manager appointed from among the candidates of insolvency administrators proposed when submitting an application.

During the monitoring process, the temporary manager searches for the debtor’s property, creates a register of creditors’ claims, finds out whether it is possible to restore solvency, and identifies signs of deliberate and fictitious bankruptcy.

Debt restructuring is being introduced for entrepreneurs and citizens. A financial manager is appointed from among the proposed candidates for arbitration managers. Debt restructuring is carried out to restore the debtor's solvency and pay off existing debts.

Thus, the goal of the first stage is to help the debtor get out of the crisis situation and repay the debt that caused the insolvency. If the debts are paid off or the debtor and creditors reach a settlement agreement, the bankruptcy case is dismissed. If, following the results of the first bankruptcy procedure, it turns out that the debts cannot be repaid, the court recognizes the debtor as insolvent and introduces the following procedure.

Reference! In relation to organizations, after completion of observation, financial rehabilitation or external management may be introduced. In the process of financial recovery, measures are taken to restore the company's solvency and repay its debts on schedule. The head of the organization continues to exercise his powers under the control of an administrative manager appointed from among the candidates proposed by the first meeting of creditors.

External management also allows you to restore the debtor's solvency. In contrast to financial recovery, the head of the company resigns and his powers are transferred to an external manager appointed by the arbitration court based on the decision of the first meeting of creditors.

In case of successful financial rehabilitation and external administration, the bankruptcy case is terminated. In practice, these procedures are rarely adopted, since in most cases the debt is uncollectible.

Stage 3 – Adoption of a court decision to declare the debtor bankrupt

By the next meeting, the temporary manager must hold the first meeting of creditors and create a register of claims of creditors of the debtor organization. Also, on the basis of accounting documentation, he analyzes the financial condition of the debtor in order to determine the possibility of restoring solvency (Article 70 of Law No. 127-FZ).

During the debt restructuring, the financial manager of a citizen or entrepreneur must organize the drawing up of a restructuring plan, which is approved at a general meeting of creditors and in court. The plan is drawn up in the form of a document that indicates a list of all creditors with the amount of debt, a debt repayment schedule, and the period for implementing the plan.

If signs of bankruptcy of the organization persist and the restructuring plan is not implemented, then at the next court hearing the issue of declaring the debtor insolvent is decided.

The court makes a decision that introduces the following procedures:

• bankruptcy proceedings against the organization;
• sale of property in relation to a citizen or entrepreneur.

The purpose of this stage is to identify the debtor’s property for the purpose of selling it and repaying debts to creditors using the proceeds.

We must remember! After a debtor is declared financially insolvent, he has no right to independently carry out transactions. The director of the legal entity is dismissed and his functions are transferred to the bankruptcy trustee. The citizen and entrepreneur also lose their independence. Control over the accounts passes to the financial manager, who conducts all affairs on behalf of the debtor.

Stage 4 – Completion of the bankruptcy procedure

After all measures have been taken to identify the debtor’s property and repay debts, a final meeting of creditors is held, at which a decision is made to apply to the arbitration court to complete the insolvency procedure.

The consideration of bankruptcy cases in the arbitration court ends with the issuance of a ruling to terminate the proceedings. Typically it takes 2-3 years to complete all activities. Specific deadlines are prescribed in Law No. 127-FZ.

What cases are considered by the arbitration court?

The exclusive competence of arbitration courts includes:

• insolvency (bankruptcy) cases;
• cases on disputes related to the creation of a legal entity, its management or participation in a commercial company (corporate disputes);
• cases on disputes regarding refusal of state registration of legal entities, individual entrepreneurs, etc.

Also, taking into account the nature of the dispute and the subject composition, the following are resolved in the arbitration court:

• Contractual disputes. They arise if the parties violate their obligations under commercial contracts.
• Disputes with the tax office. Appeal of regulations, additional tax assessments and administrative penalties, refund of overpaid taxes. These are complex cases that require qualified counsel.
• Administrative disputes. When doing business, entrepreneurs often come into contact with authorities and officials. If a government agency acts unlawfully, entrepreneurs are forced to go to court.
• Complaints about the results of trades and auctions. Participants in competitive procedures request that their results be declared invalid due to a violation of the procedure or violation of antimonopoly legislation.

Types of cases considered by arbitration

Arbitration court

considers any cases related to the economic activities of various legal entities, individual entrepreneurs and organizations. The conflict will be recognized as economic in situations where they are related to property rights, financial obligations and the provision of certain services or goods.

Arbitration legal disputes

can be classified into several main groups:

1. Contractual disputes. Cases falling into this category involve violations of the terms of agreements concluded between several companies. A mandatory feature of this group will be the presence of a specific agreement, the terms of which were ignored by one of the parties. Most often, a case is brought to court when there is a failure to fulfill financial obligations.
2. Arbitration tax disputes
   . Recently, there has been an increase in the number of cases of this type. A mandatory characteristic of tax disputes is the mandatory participation in the process of the tax inspectorate, which can act as a defendant if an illegal collection of money is recorded, or as a plaintiff when enterprises refuse to pay tax deductions.
3. Arbitration corporate disputes
   . This is one of the specific types of arbitration conflicts, since they occur between representatives of the same organization. In particular, disputes may arise between shareholders, shareholders, founders and co-owners. The most typical example of a corporate dispute is when shareholders are not satisfied with the size of dividends, or suspect the chairman of the company of fraudulent transactions.
4. Bankruptcy. The bankruptcy mechanism is often used for fraudulent purposes, which is why the court shows increased attention to disputes of this group. Most often, enterprises declare themselves bankrupt when they do not have sufficient resources to pay off current debts.
5. Disputes in arbitration court
   about property rights. Here, the parties to the conflict cannot distribute which of them owns what property, and what are the grounds for this. Most often, it happens that several legal entities claim the same resource at once, but they cannot sort it out among themselves peacefully.
6. Reorganization, liquidation and creation of organizations. When a legal entity is just being created, undergoes reorganization processes or ceases its activities, disputes often occur. Thus, the founders cannot deal with the problems and begin to sell off property, while the shareholders are categorically against such a development of events.
7. Appealing decisions. Disputes of this type arise when the administration of a subject makes a certain decision
   , bypassing the interests of shareholders and co-owners, ignoring their protests.

How is arbitration settlement of disputes carried out?

The law establishes the procedure for settling arbitration disputes. According to Part 5 of Article 4 of the APC, it is necessary to send the claim to the defendant - this is an attempt at pre-trial settlement. If agreement is not reached, the initiator of the claim sends a statement of claim to the court. Arbitration proceedings in the court of first instance consist of the following stages:

1. Acceptance of the claim for proceedings;
2. Preliminary court hearing – the court checks the readiness of the case for the main trial, the parties to the dispute become familiar with each other’s legal positions;
3. Consideration of the dispute on its merits;
4. Making a decision.

The decision comes into force after 30 days from the date of production in full; if the losing party does not agree with it, it can appeal it on appeal no later than 30 days. After consideration of the appeal, the decision immediately comes into force. You can then appeal an act that has already entered into force through the cassation procedure.

When is it possible to review a case due to new or newly discovered circumstances?

The newly discovered circumstances are:

• circumstances significant to the case that were not and could not be known to the applicant;
• falsification of evidence established by a court verdict that has entered into legal force, a knowingly false expert opinion, knowingly false testimony of a witness, knowingly incorrect translation, which entailed the adoption of an illegal or unfounded judicial act in this case;
• criminal acts of a person participating in the case or his representative established by a court verdict that has entered into legal force, or criminal acts of a judge committed during the consideration of this case.

The new circumstances are:

• reversal of a judicial act of an arbitration court or a court of general jurisdiction or a resolution of another body that served as the basis for the adoption of a judicial act in this case;
• a transaction recognized as invalid by a judicial act of an arbitration court or a court of general jurisdiction that has entered into legal force, which entailed the adoption of an illegal or unfounded judicial act in this case;
• recognition by the Constitutional Court of the Russian Federation of a law applied by an arbitration court in a specific case as inconsistent with the Constitution of the Russian Federation, in connection with the adoption of a decision on which the applicant appealed to the Constitutional Court of the Russian Federation;
• the violation of the provisions of the Convention for the Protection of Human Rights and Fundamental Freedoms established by the European Court of Human Rights during the consideration by the arbitration court of a specific case, in connection with the decision on which the applicant applied to the European Court of Human Rights;
• determination or change in the resolution of the Plenum of the Supreme Court of the Russian Federation or in the resolution of the Presidium of the Supreme Court of the Russian Federation of the practice of applying a legal norm, if the relevant act of the Supreme Court of the Russian Federation contains an indication of the possibility of revising judicial acts that have entered into legal force due to this circumstance (clause 5 as amended by Federal Law No. 186-FZ of June 28, 2014, see the text in the previous edition);
• establishment or modification by federal law of the grounds for recognizing a building, structure or other structure as an unauthorized construction, which served as the basis for the adoption of a judicial act on the demolition of the unauthorized construction.

How does pre-trial dispute resolution occur in arbitration proceedings?

Pre-trial settlement of disputes is mandatory. The claim must contain those requirements that the plaintiff will insist on in court. Thus, the law gives entrepreneurs the opportunity to avoid court proceedings and additional costs for them (state fees, representative fees, and, if necessary, examination). If, after 30 days from the date of filing the claim (unless another period is established by the contract), it was not possible to reach a compromise, the plaintiff has the right to go to court. If the legal requirements for pre-trial settlement are ignored, the claim will be returned or left without consideration. In bankruptcy proceedings or corporate disputes, filing a claim is not mandatory.

The claim is made in writing, indicating specific requirements for the defendant. If the case goes to court, the fact of sending and the content of the claim will be checked. The claim itself must duplicate the requirements described in the claim. Also, the text of the claim must indicate the documents on which the plaintiff bases his claims.

The method of sending a claim can be: (a) personally in the hands of a representative of the counterparty with a note of receipt, (b) a valuable letter with a list of attachments, (c) in another way in which the fact of delivery of the claim to the addressee will be recorded.

If the counterparty agrees to fulfill the requirements presented to him, but later, the parties are recommended to formalize the agreements reached with an additional agreement. And if possible, the counterparty fulfills the requirements described in the claim within 30 days.

Who takes part in bankruptcy litigation?

A limited number of persons have the right to participate in an insolvency dispute. In accordance with Article 34 of the Bankruptcy Law (127-FZ), the participants in the legal process are:

• debtor (organization, entrepreneur or citizen without registration as an individual entrepreneur);
• creditors who have a right of claim against the debtor that arose before filing a petition for insolvency with the court;
• arbitration manager;
• tax service;
• Rosreestr;
• local government bodies.

A representative of the owner of the debtor’s property, a representative of employees, self-regulatory organizations of arbitration managers, creditors for current payments and other persons specified in Article 35 of Law No. 127-FZ may participate in the arbitration process.

Observation procedure in case of bankruptcy of an enterprise

Creditors' claims in bankruptcy

The procedure for making a decision by the arbitration court?

The court makes a decision based on the evidence provided by the parties to the dispute. Therefore, it is important to support claims and demands with written evidence: contracts confirming the obligations of one of the parties, as well as documents confirming the violation of these obligations. In cases where the dispute concerns the quality of the work done, for example, construction, then it is impossible to do without the appropriate examination. The lack of evidence and errors in its preparation reduce the chances of satisfying the claims. Therefore, you need the support of an arbitration lawyer who, before going to court, will evaluate your evidence base to ensure it meets your objectives, and will also represent your interests in court. The decision-making is also influenced by the behavior of the plaintiff at court hearings. Negative consequences, including the loss of a case, may be associated with the plaintiff’s attempts to deliberately delay the trial, the inability to speak convincingly in court, incorrectly drawn up documents, the absence or incorrect execution of evidence. And, conversely, professional preparation of documents and support from an arbitration lawyer significantly influence the possibility of winning a dispute.

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How to collect evidence for an arbitration dispute?

When preparing for trial, gathering evidence is critical. This must be data confirming the defendant’s commission of illegal actions and substantiating the plaintiff’s claims. All evidence is shared:

• to written ones. These may be contracts, certificates, correspondence, acts and other documents relating to the arbitration dispute. They can be presented to the court in graphic or digital form. Foreign documents must be accompanied by a translation certified by a notary;
• real These are objects that help clarify the circumstances of the dispute by their properties, location or appearance. In order to attach material evidence to the case and have the opportunity to inspect it, the court must make a ruling. Such items are usually stored where they were found. In some cases, they are sent to the arbitration court.

During the arbitration dispute, the type of evidence should not change. They are studied in the presence of all interested parties. To do this, the court may involve witnesses, experts and other independent persons. In some cases, everything is recorded in photos and videos. The received materials are reflected in the protocol and then attached to it. The examination of evidence is based on the following data:

• expert opinions. Such evidence is required during arbitration disputes, when the truth can only be established after special research. Participants in the hearings may petition the court to invite or disqualify experts. The result of the study is a conclusion containing substantiated conclusions;
• witness statements. The most common source that helps determine new circumstances of the case. Witnesses are persons who became participants and eyewitnesses of events or received information regarding the dispute from third parties. At the same time, they must disclose their source of information. Otherwise, their testimony will not affect the course of the case in any way. When a participant in an arbitration dispute requests the involvement of a specific witness, he must indicate the degree of his importance, as well as provide information about the person, including his place of residence;
• testimony of the participants in the case. These are the opinions of the parties, which the court may accept orally or in writing. If a participant for any reason cannot appear at the hearing, he is questioned via videoconference;
• consultations of independent specialists. This source of information differs from expert opinion in that research is not required. A specialist in a particular field testifies orally during the interview;
• documents and other materials. According to Part 3 of Article 64 of the Administrative Procedural Code of the Russian Federation and Article 50 of the Constitution of the Russian Federation, they must be received officially and influence the judicial process.

After the plaintiff has collected evidence, he must present it to the other participants in the arbitration dispute before the court hearing. The same applies to the defendant. At the meeting, the parties, as a rule, use only the evidence base, about which everyone else was notified in advance. If new evidence appears during the process, you can use it. However, in this case, you may incur unforeseen expenses, according to Part 2 of Article 111 of the Administrative Procedural Code of the Russian Federation.

The court may give time to collect additional evidence. This happens if the available data is not enough to clarify all the nuances of the case or the plaintiff changes his claims due to newly discovered circumstances.

If there are serious obstacles to obtaining evidence from third parties not participating in the arbitration dispute, a participant in the case may petition the court. This document contains a request to formally request the necessary data from the people who have it.