Azerbaijan expands powers of commercial courts through landmark legislative amendment

As a result of the legislative step, the Milli Majlis, the Parliament of Azerbaijan, adopted in the third reading a bill expanding the powers of commercial courts. The proposed amendment to the Code of Civil Procedure marks a shift defining the subsidiary role of courts in relation to arbitration in the absence of an alternative agreement between the parties.

According to the draft legislation, in the absence of direct agreements to the contrary, the courts will perform additional functions in connection with arbitration. The parties participating in the arbitration agreement or the arbitral tribunal may request the court to assume such subsidiary duties.

This step is consistent with global trends in balancing the roles of traditional courts and alternative dispute resolution mechanisms.

The provision allowing the parties to seek assistance from the court in support functions brings a certain flexibility to the legal system, providing participants in arbitration proceedings with a balanced appeal to traditional judicial support when necessary.

Legal experts expect that this legislative maneuver will increase the effectiveness of dispute resolution in commercial matters, ensuring harmonious interaction between the official judicial system and more flexible arbitration procedures.—0-