The Supreme Court agreed with the Arbitration Court decision in favor of LLP performed the services to recover the debt on their payment

Judicial division for civil cases of the Supreme Court upheld the first instance court decision, which dismissed the petition for annulment of the arbitration court decision to recover from the JV "FIAL" in favor of LLP "Engineering Drilling Company" Si Bu "more than half a billion tenge as payment for services rendered under the contract.

The dispute of the two LLP, which was the subject of consideration by the courts of lower instances, was as follows.

Engineering Drilling Company "Si Bu" (Si Bu) and JV "FIAL" (Fial) signed contracts on drilling wells in East Mortuk Aktobe region and pay the cost of services.

After a time, carried out the amount of work indicated in the contract, and without receiving payment owning him, Si Bu went to the arbitration court - Kazakhstan commercial arbitration with a legal claim to recover the debt with Fial on contracts. The arbitration court satisfied the legal claim, it has decided to collect from Fial 1,670,060,960 tenge (debt) and 995 060 960 tenge (taking into account the defendant statements), 316 091 009 tenge (penalty) and 49,715,442 tenge (arbitration fee).

Disagreeing with the decision, Fial went to the court with the petition for its cancellation. Specialized Inter-district Economic Court of Astana dismissed the petition. Astana City Court, terminating the decision, sent a petition to the same court for a new trial. SIEC capital, considered the case for the second time, granted the petition and terminated the arbitral court decision. Astana City Court has agreed with this court act. Assuming that the courts violated the substantive and procedural law, Si Bu appealed court acts held in the highest judicial body.

The First Instance Court explained that the parties had not reached an agreement on the composition of the court, therefore, the dispute should be referred for settlement to the competent court. Violation of the Law provisions has led to the formation of the composition of the court contrary to the principles of independence of arbitrators.

However, the highest judicial authority considers erroneous the court conclusions, and also noted the absence in the contested certain circumstances, being the absolute grounds for cancellation of the arbitral court decision.

According to the legislation the arbitration court's decision may be appealed only in cases where a party of arbitration proceedings, filed an application to set aside the arbitral court decision, will present evidence that the composition of the court or the arbitration did not comply with legal requirements. The law also regulates the formation of structure in the arbitration courts as agreed by the parties to settle a dispute.

The Supreme Court, in such circumstances, terminated the challenged court decisions, upheld the original first instance court decision.

State fee (more than 10 million tenge), paid by the applicant when filing the petition challenging the court acts in the Supreme Court, charged in its favor from the defendant - JV «FIAL».