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Report No. 188

(XIII) Ukraine:

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Effective from 5th July, 2001, Ukraine introduced major reforms to the judicial system by amending the "Law of Ukraine and quot"; "On Judicial System of Ukraine & quot"; here the new system of 'commercial courts' is described.

The new hierarchy of commercial courts consists of:

(a) Local Commercial Courts (previously regional arbitrage courts and the arbitrage courts of Kyiv and Sevastopol);

(b) Appeal Commercial Courts; and

(c) The Supreme Commercial Court of Ukraine (previously the Supreme Arbitrage Court).

Commercial Courts inherited the authority to consider disputes between legal entities, and between legal entities and state authority (including the tax authorities), as well as to settle bankruptcy cases.

The local Commercial Court is the Court of first instance considering any disputes (including disputes with the local tax authorities) in the territory of Ukraine's administrative regions. Disputes with the State Tax Administration of Ukraine and other national bodies fall under jurisdiction of the Commercial Court of Kyiv. Earlier, such disputes fell under jurisdiction of the Supreme Arbitrage Court of Ukraine. A division of a local Commercial Court shall come into force in ten days from the date of its approval.

Appeal Commercial Court is the Court of Appeals. There are 8 Appeal Courts, jurisdiction of which covers six specific territories. The appeal commercial court may review decisions taken by local commercial courts located in the territory over which the competence of an Appeal Court is extended and it can review its own decisions due to newly discovered circumstances.

The Supreme Commercial Court governs activities of local and Appeal Commercial Courts and reviews their decisions under cassation proceedings and it will also re-consider cases due to any newly discovered circumstances. The Supreme Commercial Court gives explanations regarding practice of enforcement of legislation regulating commercial activities. A cassation claim can be filed with the Supreme Commercial Court within one month from the date a decision is taken by the local commercial court or the date when a resolution taken by the Appeal Commercial Court comes into force. A cassation claim shall be reviewed within two months since the date the claim is received.

Upon consideration of a claim, the Supreme Commercial Court takes a resolution, which shall become effective from the date of its issuance.

General prosecutor of Ukraine or the parties to a law suit may dispute a resolution taken by the Supreme Commercial Court with the Supreme Court, which is the highest judicial body of the courts of general jurisdiction. A cassation claim to the resolution of the Supreme Commercial Court may be submitted not later than a month from the date of its issuance. Proceedings on revision of the Supreme Commercial Court by the Supreme Court shall be commenced with the consent of at least five Judges and shall be considered within a month from the date of receiving a cassation claim. A resolution of the Supreme Court shall be final and shall not be subject to appeal.

A commercial court may review its own decision, which has come into force, due to newly discovered circumstances, which are substantial for the case and were not known to the claimant.



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