GILS Dispute Resolution: Azerbaijan

AZERBAIJAN

CASE №1:

The client, a company specialising in the production of casing and other industrial pipes in the oil and gas industry, entered into a contract with a company registered in Azerbaijan. In the course of their cooperation, the company registered in Azerbaijan had incurred a debt. 

As the dispute was not resolved through negotiations, the client, in accordance with the previously concluded contract, applied to the Moscow Arbitration Court for resolution of the dispute, which, in turn, issued an award for recovery of the debt. 

In order to recognise and enforce the award in Azerbaijan, the client applied to GRATA International Azerbaijan. Our lawyers evaluated the available documents and requested additional documents in accordance with the requirements of the law and the practice of such cases. 

The specificity of the case was that when it comes to the recognition of foreign awards in Azerbaijan, one should be very selective in preparing the documents attached to the suit. 

GRATA International Azerbaijan represented the client before the Supreme Court of the Republic of Azerbaijan in a case regarding the recognition of an award of the Moscow Arbitration Court in Azerbaijan for debt recovery against a local company. The representation of the client was successful and the Supreme Court of the Republic of Azerbaijan issued a favourable decision on the recognition of the Moscow Arbitration Court award in the territory of the Republic of Azerbaijan. 

Currently we are actively working on the enforcement of this decision.

Fidan Vahabova, Sarkhan Mammadov.

CASE №2:

The client is a housing and construction cooperative registered in Azerbaijan. 

In this case, several residents who had entered into a service agreement with the client were systematically omitting to pay utility bills and carrying out unauthorised construction works on the premises, despite the requirements of the existing agreement.

The client approached Grata International Azerbaijan to force these tenants to pay the arrears. The initial claim was to the court of first instance, where the decision was in favour of the residents. 

As a consequence, an appeal had to be initiated, which resulted in a change of the decision in favour of the client. For this purpose, we succeeded in getting the court to involve experts, who prepared an independent opinion with the aim of finding out and determining the average prices for housing and communal services in the administrative area. 

According to the court decision, the tenants were obliged to pay the outstanding utility bills and dismantle the unauthorised constructions, thus bringing them into compliance with the terms of the agreement between the housing and construction cooperative and them.

Royal İbrahimli.