Drafting statements of claim in bank disputes and judicial protection

The drafting and filing of complaints in connection with problem loans, as well as the preparation of complaints and petitions in connection with the commencement of bank bankruptcy proceedings, are carried out in accordance with international law.

Looking at the statistics, we see that over the past few years, litigation on problematic loans has reached a maximum. One of the main reasons for this is that individuals do not read or understand bank contracts. In some cases, individuals may not be able to pay off their debts in accordance with the established traffic. As a result, disputes are resolved in court.

In all cases, we recommend that you seek professional legal advice before signing a loan agreement. In this case, you will be more aware of your commitments and find out if the terms of the agreement are in your interest. The contracts with the signature of the client are considered the main document in the lawsuits.

The difference between lawsuit proceedings and writ proceedings

Applications for bad debts in courts are considered either through lawsuit proceedings or writ proceedings. In both cases, the case is considered by the court and a decision is made. After the decision comes into force, it is sent to the execution and approbation department.

There are some differences between the consideration of cases in the lawsuit and writ proceedings. Generally, the case of bank disputes is considered within 3 months. In the case of writ proceedings, this period is 3 days. It should be noted that cases of writ proceedings are considered without the participation of the parties. A court order is sent for execution after 10 days from the date of the decision in the writ proceedings.

It should be added that when applying to the court for writ proceedings, the state duty is 20 manats. In a lawsuit, the amount of state duty varies depending on the subject of the claim.

In the lawsuit, proceedings are considered in several stages. Since the presence of the parties to the proceedings is mandatory, the case may be left without consideration in court if one of the parties does not appear at the meeting.

After the court decision comes into force, i.e. one month after the judgment, the decision is sent for execution. In practice, most often, judges begin to calculate the validity of a decision from the moment of the official submission of a judicial act (order, order) to the parties.

Bankruptcy petition

Banks may be declared insolvent only by court order. An out-of-court procedure for declaring a bank insolvent is not allowed. An application for the commencement of bankruptcy proceedings for a bank shall be considered by the court in the following cases:

  • When submitting an application by the relevant authority, together with a decision to revoke a banking license and a financial report confirming the existence of the grounds specified in article 61 of the Law on Banks;
  • When submitting an application by creditors together with documents confirming the creditors' claim in accordance with Section 62.2 of the Banking Law.

If the bank has not fulfilled its obligations, one or more lenders may apply to the Central Bank. The Central Bank considers the application within 5 calendar days from the date of its receipt and if it establishes the fact that the bank has not fulfilled its obligations, it takes a decision to submit to the court applications for canceling the banking license and initiating bankruptcy proceedings.

An application to the court by the Central Bank is submitted within 3 calendar days after the adoption of the decision. If the fact of non-fulfillment by the bank of its obligations has not been established, the supervisor of financial markets sends a reasoned refusal to creditors. Rejection by the supervisor of financial markets of creditors' applications does not prevent them from submitting relevant applications to the court.

In accordance with article 64 of the Law on Banks, after a petition is filed to initiate bankruptcy proceedings for a bank, the court invites the relevant authority, all other applicants and the bank itself for consideration, and if the application is submitted by the financial market supervisor, the bank’s interim administrator to a closed meeting to review the application.

Judicial review must begin within 48 hours of the date of application. Judicial review must be completed within 7 calendar days from the date of application. The court rejects or approves the application based on the results of the judicial review.

In addition, as indicated in article 65 of the Law on Banks, if any document submitted to the court to substantiate the statement or other evidence is trumped up or inaccurate and this statement without documents or another statement without documents does not meet the requirements of the Law, and also, if the application submitted by the creditors is unfounded, then the application to initiate bankruptcy proceedings on the bank is rejected by the court.

Providing legal services in case of bank disputes

The professional lawyers of  Legal Store provide you with legal services to protect your interests in all state bodies, including the courts, in case of bank disputes, in the preparation of applications and complaints, during judicial protection and appeal to the relevant authorities when executing court decisions.

Apply here to receive the service online.

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