Litigation - Debt collection in Azerbaijan - Agency in Baku

With litigation attorneys, we institute criminal and civil cases for the recovery of rights, resolve disputes at local courts or via international arbitration, as well as collect debts in Azerbaijan.

CLC provides legal services related representation of its clients before their business partners, state authorities, the judiciary branch and national courts going through all procedural phases of mediation, arbitration and court delegation. Experienced litigation attorneys (lawyers) of CLC acting as local debt collection agents possess broader knowledge of the local business environment and ensure the best possible approach applied that is necessary for timely payment of clients' receivables and recovery of overdue debts.  

The Judicial and Court System in Azerbaijan

The judicial system of Azerbaijan includes a three-tier court system with several specialized courts. The first tier general courts hear civil and criminal cases of all severity. Currently, there are 86 courts (city-district courts) in Azerbaijan. 

Appeal courts hear appeals from such first-instance courts on the points of law, without evaluation of shreds of evidence as a matter of policy. There are 5 appeal courts in Azerbaijan with territorial zoning jurisdiction. 

The Supreme Court is the court of cassation, hearing the cassation appeals from the appeal courts. The Constitutional Court of Azerbaijan hears cases involving a breach of constitutional rights, as well as interprets laws. 

As a member of the Council of Europe, an application may be filed to the European Court of Human Rights from the decision of the Supreme Court within 6 months, provided that there are issues involving the breach of the European Convention of Human Rights. 

In addition to these, administrative courts and newly established commercial courts (yet to start accepting applications) operate in Azerbaijan. The administrative courts have jurisdiction over the disputes involving public bodies or cases including administrative offenses. The commercial courts would be eligible to hear commercial and tax-related disputes. 

Lastly, the military court system operates as a separate system within the general judiciary branch in Azerbaijan. 

With our professional Azerbaijani attorneys and advocates, we offer:

  • Representing clients in disputes with local and foreign business partners
  • Providing communication, correspondence regarding unpaid debts 
  • Preparation of recovery plans, payment terms of overdue debts
  • A tailor-made approach to debt collection based on a success fee
  • Formulation of procedural documents, such as plaintiff\'s complaint and defendant\'s objections; 
  • Attendance at hearings, in all instances of local courts;
  • Allegations distribution and oral arguments before the Court;
  • Recognition and enforcement of foreign court judgments and arbitration awards; 
  • Enforcement of local court judgments. 


Our arbitration and mediation services are as follows:

  • Initiation of arbitration proceedings;
  • Conduct and arrangement of mediation; 
  • Counseling regarding the arbitrators' nomination and arbitration clauses;
  • Representation at hearings;
  • Final submissions;
  • Requests for clarification of the arbitration award;
  • Arbitration Award's judicial execution.

As one of the most requested services, below we provide further information regarding recognition and enforcement of foreign court decisions and arbitration awards, as well as debt collection issues in Azerbaijan. 

Recognition and Enforcement of foreign court decisions and arbitration awards 

Currently, Azerbaijan has about 20 treaties in force regarding the mutual legal assistance matters, which cover recognition and enforcement of foreign court decisions. With regard to these countries (Russia, Turkey, Georgia, Kazakistan, UAE, China, India, Iran, Lithuania, Morocco, Ukraine et cetera), recognition of courts orders and their enforcement in Azerbaijan is relatively fast and easy. Regarding other countries, in practice, mutual reciprocal approach is the principle of authorities, i.e. where the counter-party courts recognize and enforce decisions of Azerbaijani courts and there is a warranty in the central state level, Azerbaijani Ministry of Justice submits the case for hearing and final decision by the Supreme Court. The rest of the cases shall be approached on separate grounds and analyzed, before weighing the chances of recognition. 

As a member of the New York Convention for the Recognition and Enforcement of Foreign Arbitral Awards, Azerbaijani courts recognize these awards, provided that all the formalities and in certain cases, the merits are compliant with Azerbaijani laws. 

Debt collection in Azerbaijan

Another business tailored service is the debt collection in Azerbaijan, mainly debt collection services provided for foreign entities who own payments from local Azerbaijani entities due to several contractual arrangements, including debts, loans, franchising issues, violation of import terms, debts from the provision of services, trademark use debts and other contractual debt issues. 

We approach every debt issue as a new and incomparable case, adhering to our extended experience. We are extremely successful in resolving such disputes and collecting debts out of court stages (pre-court stage), mainly re-arranging payment obligations in several installments in exchange for a waiver of penalties and additional damages. 

We ensure business collects its debt fully and in a simple manner without going to court, especially by the way of agreed on the terms and conditions of payment plan. In this regard, CLC team enjoys the experience of calculation and explaining the costs, procedures, and consequences of disputes regulation in courts and convincing the parties to follow pre-court dispute resolution. Simply, CLC represents the clients, prevents conflicts between businesses and provides solutions to any complicated disputes.

The real-life scenarios demonstrate that it is vital who you contact with in such cases, as well as the manner of request for payment. The next stages are purely analytical and commercial negotiation of dispute resolution. The vital stage is the strictest one, which involves legal action, including instituting of an insolvency (bankruptcy) case and claiming of compensation for full damages.