When studying the formation of civil law doctrines on recognizing the bankruptcy of business entities in the Republic of Uzbekistan, it is necessary to turn to national historical traditions, since the current stage of civil law regulation of bankruptcy legislation is a new stage in the development of the norms created in our national legislation in the 5th-20th centuries.

The development of the civil legal system for declaring business entities bankrupt consists of a number of natural stages, the first of which is the period of Islamic law^[1]. The civil law relations of bankruptcy are described in the Holy Quran, which is the main source of Muslim law, and then in the Khrdis (al-Sunnat), as well as in collections of opinions jointly expressed by Muslim jurists in their writings.

In the V-VII centuries, there was also the concept of bankruptcy, as «ruin», «crisis», «destruction», helplessness «,» insolvency «, in particular, if a person vows to give part of his wealth to the poor, and as a result he himself becomes bankrupt, such an oath is invalidated (false)^[2]. Ibn Umar said: «The Messenger of Allah (peace and blessings of Allaah be upon him) forbade deliberate price increases in order to destroy someone’s market»^[3].

Another example: Abu Hurayrah (may Allah be pleased with him) narrated that the Prophet (peace and blessings of Allaah be upon him) said: Almighty Allah said: “If someone takes away people’s property with the intention of harming them, then he will suffer in Kiyomata, and if a person received his property with the intention of returning it, he will be rewarded for his deeds»^[4].

Said ibe Musaybd said: «Uthman ruled the following:» If a person clearly realizes and claims his right before he faces a crisis, that is, a gap, this is his property and he is right»^[5].

According to Abu Huraira, it is narrated that the Prophet (peace and blessings of Allaah be upon him) said: «If a person finds his property safe from the poor and unable to work, he will certainly have the right to take his property from others»^[6].

At the stage of Islamic law, there are also rules on the signs of bankruptcy, which are divided into short and long payment periods associated with the debtor’s monetary obligations. For example, in Chapter XII «Hideya» it is indicated that if a person swears: «I will pay off my debt quickly,» then this lasts up to one month, if he says that he will return the loan received from someone on time, it is necessary to understand the period exceeding month». This is due to the fact that any time interval up to a month is considered a short period, and a time interval over a month is considered a long period^[7].

The second stage in the development of bankruptcy in the period before independence, in the Soviet Union, was the introduction of the bankruptcy rule into the new economic policy (new economic policy — from 1921 to 1927: economic recovery and sociological reorganization of the national economy by the Soviet state, a special policy that included capitalist elements while maintaining public administration), which in 1922 was amended to the Civil Code, and then in 1927 Chapters XXXVII-XXXIX of the Civil Procedure Code. The Civil Code of 1922 was an essential element of the regulatory framework for the new economic policy based on the development of interdisciplinary market relations in the economy.

In general, the concept of bankruptcy during this period existed only in the regulatory documents of the state and was not applied in practice. This category of cases was not considered and was not taken into account in the courts, and if the court considered this category of cases, the bankruptcy process was shortened (often with the aim of reimbursing losses) not in the interests of creditors, and without the participation of creditors (without rights), but on the part of state authorities authorities^[8]. In fact, the fact that the freezing of bankruptcy legislation and procedural law was meaningless in the context of state monopolies, in the main sectors of the economy — industry, construction, transport, communications, banking and, in many respects, agricultural production. This category of cases was considered mainly due to the relationship between non-state farms — entities that were collective farms and cooperative farms^[9].

With the abolition of the new economic policy, the practice of applying the institution of bankruptcy in practice ceased, and after some time the corresponding chapters were excluded from the civil procedural legislation.

Previously, under state ownership, the regulation of bankruptcy relations was denied, since the presence of this institution was not necessary in conditions of state ownership of the means of production and the supremacy of planning principles in the economy^[10]. However, the complete absence of bankruptcy in the legislation negatively affected the stability of credit relations, which led to an unhealthy situation in the business sector and led to distrust of participants in civil relations.

At the third stage of development of the civil law doctrine on recognizing the bankruptcy of business entities — in the period after independence, the legal framework of the institution of bankruptcy was formed^[11].

In connection with the ongoing economic reforms in the country and the formation of a market economy, the issue of creating a legal basis for bankruptcy of business entities has become an urgent practical task. The first regulatory legal act of the Republic of Uzbekistan, which is the basis for recognizing the bankruptcy of an enterprise, is the Law of the Republic of Uzbekistan dated October 31, 1990 No. 152-XII «On property in the Republic of Uzbekistan» reorganization, privatization or liquidation of a state enterprise, except for cases when it is declared insolvent (bankrupt), the labor collective has the preferential right to lease the enterprise or transform it into another enterprise based on collective ownership. Disputes arising in such cases between the state body and the labor collective are resolved by state arbitration^[12].

Since the legal concept and the term «bankruptcy» did not yet exist, in some legislative acts the concept of «bankruptcy» is equated to the word «broken»^[13].

In the legislative system of Uzbekistan, the institution of bankruptcy received its first legal basis in the form of the Law of the Republic of Uzbekistan dated May 5, 1994 No. 1054-XII «On Bankruptcy». This law did not have a large volume, proceeded from 35 articles and did not regulate all relations arising in bankruptcy. In the 1994 law, the bankruptcy of a business entity was understood as the inability to satisfy creditors’ claims for payment for goods (works, services), including the inability to ensure obligatory payments to the budget and extra-budgetary funds, due to the excess of the debtor’s obligations over his property. An external sign of the bankruptcy of a business entity was the suspension of its current payments, if the business entity does not provide or is obviously unable to ensure the fulfillment of creditors’ claims within three months from the date of their due dates^[14]. However, this law did not provide for the bankruptcy of an individual entrepreneur.

The effectiveness of the application of bankruptcy legislation improved after the adoption on 28 August 1998 of the Law of the Republic of Uzbekistan «On Amendments and Additions to the Law of the Republic of Uzbekistan» On Bankruptcy «, which approved a new version of the Law» On Bankruptcy «. Compared to the old version, the new version was supplemented with a large number of new articles (if there were 35 articles, then it became 133)^[15], regulated in detail the consideration of bankruptcy cases of certain categories of debtors, added a new procedure — external management, significantly expanded the rights of creditors. Most importantly, the second edition of the Law changed the sign of bankruptcy: from the sign of non-payment, a transition was made to the sign of insolvency. The dynamics of bankruptcy cases after the adoption of the second edition is as follows: in 1998, 439 debtors were declared bankrupt; in 2002 – 1250^[16].

As the number of cases under consideration, the constant analysis of judicial practice, accumulated experience in resolving these cases, as well as identified shortcomings and gaps in the legal regulation of relations associated with bankruptcy. The need to eliminate the existing gaps in bankruptcy legislation has caused the need to amend and supplement the second edition of the Bankruptcy Law.

On April 24, 2003, the next amendments and additions were made to the Law of the Republic of Uzbekistan «On Bankruptcy», and it was approved in a new (third) edition. Now the Law consists of 192 articles, contains many new provisions related to the signs of bankruptcy and reorganization procedures aimed at restoring the debtor’s solvency. The law includes two additional chapters on the new bankruptcy procedures: supervision and judicial resolution.

The signs of the debtor’s bankruptcy are the inability of the debtor to satisfy the creditors’ claims for monetary obligations and (or) to fulfill the obligations of obligatory payments: if the corresponding obligations and (or) obligations are not fulfilled by the debtor within three months, and the debtor — a city-forming enterprise and an equivalent to it — within six months from the date of their occurrence; if the claims against the debtor — a legal entity in the aggregate amount to at least three hundred times the size of the basic calculated value, the debtor — a city-forming enterprise and an equivalent to it — at least five thousand times the size of the basic calculated value, and the debtor — an individual entrepreneur or an individual who has lost the status of an individual entrepreneur — not less than twenty times the size of the base calculated value. But it would be advisable to include in the list of signs of bankruptcy the debt on claims of creditors for the payment of severance benefits and (or) for the remuneration of persons who work or worked under an employment contract^[17].

All bankruptcy procedures are carried out by court administrators, who in each procedure have their own name (temporary — in the observation procedure, sanitizing — in the judicial resolution procedure, external manager — in the external administration procedure and the liquidator — in the liquidation procedure). The observation procedure corresponds to the type of bankruptcy legislation in force in the Republic of Uzbekistan, as it is aimed at preserving the assets of the debtor and looking for the possibility of restoring his solvency by analyzing the financial condition of the legal entity^[18].

All court administrators are appointed by the economic court and act under its control. The number of cases in this category is constantly growing: in 2004, 1742 debtors were declared bankrupt, in 2005 — 3677; in 2006 — 3545^[19]. Today, in the judicial practice of our country, there is a growing tendency to consider cases related to the bankruptcy of business entities. The statistics of bankruptcy cases considered by economic courts are as follows: 7084 (2.4%) out of 293,128 in 2010, 3,560 out of 309,468 in 2011 (1.1%) and 2,257 out of 345,611 in 2012 ( 0.6%) in 2013 from 235150 to 7202 (3.0%), in 2014 from 263218 to 4313 (1.6%), in 2015 from 348192 to 6520 (1.8% ), in 2016 up to 359165 6789 (1.8), in 2017 380518, 8112 (2.1), in 2018 415566, 8192 (1.9), in 2019 140 050 5 778 ( 4.1%)^[20]. At any stage of the consideration of the bankruptcy case by the economic court, the debtor and creditors have the right to conclude an amicable agreement ^[21] and the proceedings are terminated^[22].

As one of the features of the Law of the Republic of Uzbekistan «On Bankruptcy», it should be noted that, in accordance with it, legal entities in a state of economic insolvency, individual entrepreneurs and individuals who have lost the status of an individual entrepreneur can be declared bankrupt.

At the same time, the bankruptcy of legal entities does not apply to state unitary enterprises and budgetary institutions, as well as political parties and religious organizations, which are non-state non-profit organizations, as an exception.

In our opinion, from a civilizational point of view, the institution of bankruptcy is a complex branch of law that regulates social relations between the debtor, creditor and third parties, harmonizing material and procedural norms.

It should be noted that the essence of our legislation in this area is, first of all, to help an economically disadvantaged entrepreneur to take measures to improve his economy, and if such measures are not necessary, to liquidate him and transfer his property to the ownership of creditors.

[1] Ibratova F. Problems of a settlement in bankruptcy cases in economic courts //Norwegian Journal of Development of the International Science. – 2019. – №. 28-3.

[2] Ибратова Ф. Б. Банкротство ликвидируемого субъекта предпринимательства: проблемы и решения //Norwegian Journal of Development of the International Science. – 2021. – №. 58-2.

[3] Esenbekova, F. T. (2019). Esenbekova FT, Okyulov O., Ruzinazarov Sh., Ibratova FB Features of the approval of the world agreement by the economic court: practice and theory. Editorial team, 10(39), 90.

[4] Ибратова, Ф. Б. (2019). ПРАВОВЫЕ ПРОБЛЕМЫ МИРОВОГО СОГЛАШЕНИЯ ПРИ РАССМОТРЕНИИ ДЕЛ О БАНКРОТСТВЕ В ЭКОНОМИЧЕСКИХ СУДАХ РЕСПУБЛИКИ УЗБЕКИСТАН. In ПЕРСПЕКТИВЫ РАЗВИТИЯ НАУКИ В СОВРЕМЕННОМ МИРЕ (pp. 163-170).

[5] Sh, R., Ibratova, F., & Zh, K. (2021). THE NATURE OF JUDICIAL DECISIONS IN THE CONDITIONS OF THE DIGITAL TRANSFORMATION OF THE JUDICIAL POWER OF UZBEKISTAN. Sciences of Europe, (79-3), 10-12.

[6] Yunusova M., Ibratova F. LEGAL ISSUES OF THE WORLD AGREEMENT IN BANKRUPTCY AS A PROCEDURAL INSTITUTE //Norwegian Journal of Development of the International Science. – 2021. – №. 62-2. – С. 10-14.

[7] Барышова, М. В., Белый, В. С., Глущенко, В. М., Ибратова, Ф. Б., Новиков, А. Н., & Пронькин, Н. Н. (2019). Социальное предпринимательство: научные исследования и практика.

[8] Довлатова, Г. П., Ибратова, Ф. Б., Каращенко, В. В., Макеева, Е. И., Мирославская, М. Д., Пайкович, П. Р., & Харлампенков, Е. И. (2021). Инновации, тенденции и проблемы в области экономики, управления и бизнеса.

[9] Ibratova, F. B., Kirillova, E. A., Smoleń, R., Bondarenko, N. G., Shebzuhova, T. A., & Vartumyan, A. A. (2017). Special features of modern legal systems: cases and collisions.

[10] Ибратова, Ф. Б. (2015). Гражданско-правовые проблемы признания банкротами индивидуальных предпринимателей в Республике Узбекистан. Вопросы современной юриспруденции, (5-6 (47)).

[11] Ibratova F., Narzullaev O. LEGAL NATURE OF LEGAL RELATIONSHIP IN BANKRUPTCY //Norwegian Journal of Development of the International Science. – 2021. – №. 64. – С. 24-26.

[12] https://lex.uz/docs/111455?ONDATE=23.11.1990%2000#255560

[13] Ibratova F. Bankrotlik to ‘g ‘risidagi ishlarda prokuror ishtiroki.

[14] Ibratova F. TERMS IN CIVIL LAw AND ThEIR APPLICATION IN LEGAL PROTECTION OF CITIZENS IN ThE REPUBLIC OF UZBEKISTAN.

[15]https://lex.uz/docs/65983

[16] https://nrm.uz/contentf?doc=364736_kommentariy_k_zakonu_respubliki_uzbekistan_o_bankrotstve&products=1_vse_zakonodatelstvo_uzbekistana

[17] Ibratova F., Khabibullaev D. LEGAL ISSUES OF SIGNS OF BANKRUPTCY AND THE REALIZATION OF THE RIGHTS OF WORKERS IN CASES OF BANKRUPTCY OF EMPLOYERS UNDER THE LAWS OF THE REPUBLIC OF UZBEKISTAN //Znanstvena Misel. – 2019. – №. 11-2. – С. 55-61.

[18] Ibratova F., Egamberdiev D. PURPOSE AND SIGNIFICANCE OF OBSERVATION-BANKRUPTCY PROCEDURES APPLICABLE BY THE ECONOMIC COURT FOR LEGISLATION OF THE REPUBLIC OF UZBEKISTAN //Polish Journal of Science. – 2019. – №. 20-2. – С. 37-42.

[19] https://nrm.uz/contentf?doc=364736_kommentariy_k_zakonu_respubliki_uzbekistan_o_bankrotstve&products=1_vse_zakonodatelstvo_uzbekistana

[20] Okyulov O. et al. GENERAL PROVISIONS ON INVALIDITY OF TRANSACTIONS IN BANKRUPTCY PROCEDUR //Norwegian Journal of Development of the International Science. – 2021. – №. 68. – С. 18-21.

[21] Ibratova F., Esenbekova F. GENESIS AND EVOLUTION OF LEGISLATION ON CONCEPTIONAL PROCEDURES IN THE REPUBLIC OF UZBEKISTAN //Polish Journal of Science. – 2021. – №. 38-2. – С. 20-24.

[22] Ibratova F., Samigjonov F. LEGAL REGULATION OF THE OBSERVATION PROCEDURE UNDER THE LEGISLATION OF THE REPUBLIC OF UZBEKISTAN //ECONOMIC SCIENCES. – С. 30.