Commentary on the Rules for the Consideration of Economic Disputes by State Arbitration Agencies

Abstract

Under the order of the USSR Council of Ministers of July 23, 1959, "On Improving the Work of State Arbitration," enterprises, organizations, and institutions are required to present their claims to the other party and to take the necessary steps to settle controversies before submitting an action to a state arbitration agency. Heads of enterprises, organizations and institutions are required to consider claims against them, to meet valid demands, and to provide substantiated replies when claims are rejected. All this must be done promptly. The rules formerly in effect for the consideration and settlement of property controversies by state arbitration agencies, issued in 1934, did not in any way regulate the procedure for the settlement of disputes before they reach arbitration. They confined themselves merely to instructing that a statement of claim submitted to a state arbitration agency had to be accompanied by materials demonstrating that the claimant had taken steps to solve the dispute directly with the respondent.