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A new way of resolving disputes without going to the court was proposed to physical and legal entities of Kazakhstan

Today at the plenary session of the Mazhilis, deputies approved the draft law "On arbitration". Presenting the draft law, Justice Minister Berik Imashev noted that the law will be uniform in the field of arbitration. Development of the draft law is aimed at consolidating the two special laws governing international arbitration and the arbitration court, in connection with which developers are offering to put on the loss the Law "Court of referees" and "On International Commercial Arbitration", and to substitute it by the draft law "On Arbitration".

"At the same time in order to create conditions for full implementation of the constitutional rights of residents of the Republic of Kazakhstan, to defend their rights and legitimate interests by all means not prohibited by law, the positions of arbiters and referees were equalized by removing restrictions from the latter", - said B. Imashev.

It was proposed to include all private law disputes between individuals and (or) legal entities, regardless of the international element in the dispute to the jurisdiction of arbitration in the bill. At the same time, according the logic of the authors of the draft law, exceptions apply to such disputes, which affect the interests of minors and persons who are recognized in the manner prescribed by law, incapable or partially capable. In addition, the award proposed to extend the taboo on disputes arising from personal relations, not related to property disputes on bankruptcy and rehabilitation, as well as disputes between subjects of natural monopolies and their consumers.

"This dispute between residents of the Republic of Kazakhstan on the one hand, and government agencies, quasi-public sector entities - on the other, may be considered by arbitration only with the consent of the authorized body of the relevant industry", - said the Minister of Justice.

The draft law stipulates the principle of autonomy of the arbitration agreement, meaning that the arbitration clause must be interpreted as an agreement independent of the other terms of the contract. To ensure confidentiality of arbitration, it was proposed to apply administrative responsibility for arbitrators and the parties of the arbitration proceedings for disclosure of information, which became known during its course.

In addition, the draft law prohibits the formation of arbitration in the state bodies, state enterprises and natural monopolies. Creation of arbitration services is prohibited by subjects that occupy a dominant position in the market of goods and services, legal entities, fifty and more percent of voting shares (stakes in the authorized capital) of which directly or indirectly are owned by the state. Commenting on these restrictions, the Minister of Justice Berik Imashev explained that these rules will help to eliminate the factors of corruption offenses and external influences on adoption of decisions.

The draft law includes requirements for arbitrators. The qualification requirements for them have increased, for example, their age should be 30 years, with higher education, continuous service in the industry for at least five years. Authors of the draft law also advocate the creation of the Arbitration Chamber of Kazakhstan, which they see as a non-profit organization, as an association of the permanent arbitration institutions and arbitrators.

The draft law was approved in the first reading –during the second discussion of the draft law at the plenary session of the Mazhilis, it will considered item by item.

Zhanar Serdalina