Zakon o Parnicnom Postupku En

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    REPUBLIC OF SERBIA

    Ministry of Justice

    CIVIL PROCEDURE CODEPublished in

    "Official Gazette of the Republic of Serbia" No. 125/04

    Prepared by

    Jugoslovenski pregled/ Yugoslav Survey

    Belgrade, 2008

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    Note: This is a true translation of the original Law

    Original title:

    ZAKON O PARNINOM POSTUPLU

    Slubeni glasnik Republike Srbije br.125/04

    Translation date: February 2008.

    Prepared by: Javna ustanova / Public AgencyJugoslovenski pregled /Yugoslav SurveyDeanska 8, Beograd; Phone/Fax: + 381 11 / 32 33 610, 32 32 295; 32 41 953, 32 40 291; P.O.B. 677

    www.pregled-rs.com www.yusurvey.co.yu e-mail: [email protected]

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    CIVIL PROCEDURE CODE 3

    CIVIL PROCEDURE CODE

    P a r t O n e

    GENERAL PROVISIONS

    Chapter One

    BASIC PROVISIONS

    Article 1

    This Law shall define the rules of proceedings for providing court legal protection in civil

    law disputes arising from personal, family, labour, business, property and other civil law

    relations, except for the disputes where other type of proceedings is provided pursuant to a

    particular law.

    Article 2

    Parties are entitled to lawful, equal and fair protection of their rights. The court may not

    refuse to rule on a claim within its jurisdiction.

    Article 3

    In civil proceedings the court rules on the extent of claims filed in the proceedings.

    Parties may freely dispose with claims filed during the proceedings. Parties may waive their

    claims, admit their opponents claim or reach settlement.

    The Court shall not accept disposals of parties that are contrary to enforceable statutes,social order and rules of decency.

    Article 4

    The Court shall, as a rule, adjudicate in a lawsuit on the basis of oral, direct and public

    hearing.

    The court shall close the proceedings to the public only in cases stipulated by law.

    Article 5

    The court shall afford each party leave to make declarations regarding claims, proposals and

    allegations of the other party.

    The court may rule on a claim in cases where the other party was not afforded leave to

    declare only when so provided underthis Law.

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    CIVIL PROCEDURE CODE 4

    Article 6

    Civil proceedings are conducted in Serbian language, with ekavian or jekavian dialect, using Cyrillicscript, while Latin script shall be used in accordance with the

    Constitution and law. In regions where the law provides for official use of the language of a

    particular national minority, the proceedings shall be conducted in the language and script of such

    national minority.

    The parties and other participants to the proceedings are entitled to use their own language andscript, pursuant to provisions of this Law.

    Article 7

    The parties are required to present all facts on which they base their claims and propose evidence

    supporting such facts.

    It is incumbent upon the court to ascertain all the facts that are relevant to establish whether the

    claim is well founded or not.

    The Court may also ascertain facts and present evidence not presented by the parties if the

    result of the hearing and presentation of evidence indicate that parties are aiming to dispose of claimsthey are not allowed to (Article 3, paragraph 3), or if provided by other statutes.

    The court may not base its ruling on facts in respect of which the parties were not afforded the

    opportunity to declare, unless otherwise provided by law.

    Article 8

    Which facts shall be accepted as proven shall be decided by the Court, on the basis of

    conscientious and meticulous assessment of each proof and all the evidence together, and pursuant to

    the results of the whole proceedings.

    Article 9

    The parties shall conscientiously exercise the rights recognised by this Law.

    The parties, third interested parties and their legal representatives shall speak the truth before the

    court.

    The court shall prevent any abuse of the rights of the parties to the proceedings.

    Article 10

    The parties have the right to have the ruling of the court on their claims and proposalswithin reasonable time.

    It is incumbent upon the Court to conduct the proceedings without undue delay and economically.

    Article 11

    Before and in the course of the proceedings, the parties and the court shall seek to settle civil

    disputes through mediation or in other amicable manner.

    Article 12

    When the decision of the court rests on prior deliberation of the issue whether a particular right or

    legal relation exists, and the court or other competent authority has not ruled on such issue

    (interlocutory issue), the court itself may rule on the issue unless otherwise set out in special statutes.

    The courts ruling on interlocutory issue shall have legal effect only in the litigation where such

    issue has been resolved.

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    CIVIL PROCEDURE CODE 5

    Article 13

    In civil actions the court shall be bound, with respect to the existence of a criminal offence and

    liability of the perpetrator, by a final judgement of the criminal court pronouncing the accused guilty.

    Article 14

    If the law does not provide a particular form for undertaking certain actions, the parties may

    undertake procedural actions in writing outside of the hearing or orally during the hearing.

    Chapter Two

    JURISDICTION AND COMPOSITION OF THE COURT

    1. General Provisions

    Article 15

    The court decides ex officio, immediately upon filing of the complaint, on its jurisdiction and itscompetent composition. This decision is made on the basis of statements in the complaint and the facts

    known to the court.If any change occurs in circumstances on which the jurisdiction of the court is based during the

    proceedings, or if the plaintiff reduces the claim, the court of competent jurisdiction at the time of

    filing of the complaint shall continue to have jurisdiction despite the fact that another court of the

    same type should have jurisdiction due to these changes.

    Article 16

    Throughout the proceedings the court shall observe ex officio whether the deliberation inthe litigation falls under judicial competence.

    When the court determines during the proceedings that competence for adjudication in the action

    is not with the court but another national authority, it shall declare itself incompetent, revoke allactions undertaken in the proceedings and reject the complaint.

    When the court determines during the proceedings that a court of the Republic of Serbia

    (hereinafter referred to as national court) does not have jurisdiction in the action, it shall ex officiorevoke all actions undertaken in the proceedings and reject the complaint, except in cases where

    jurisdiction of a national court depends on the agreement of the defendant and such agreement has

    been given.

    Article 17

    Throughout the proceedings, the court shall observe ex officio its subject-matter jurisdiction.If pre-trial hearing has already been held, or if it has not been held since at the first hearing for the

    main trial the defendant commenced contesting the subject-matter, a higher court of first instance may

    not either following an objection orex officio declare itself without subject-matter jurisdiction forcases within the jurisdiction of a lower court of first instance of the same type.

    A ruling of a higher first-instance court pronouncing itself to have subject-matter jurisdiction and a

    ruling of such court pronouncing itself without subject-matter jurisdiction and referring the case to a

    lower court of the same type, may not be appealed.

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    Article 18

    When a panel of judges or the judge president of the panel determine eitherex officio or followingthe objection of the parties during the proceedings that the relevant lawsuit should be adjudicated by a

    judge of that court sitting alone, the proceedings shall continue before a judge sitting alone after the

    aforementioned decision becomes effective, and if possible before the judge president of that

    panel sitting alone. A judge sitting alone shall be bound by the final decision referring the caseunder his/her jurisdiction.

    In cases specified in paragraph 1 of this Article the panel of judges may, pursuant to the status of

    the case, determine not to refer the case to a judge sitting alone and to conduct the proceedings itself.

    This decision of the panel of judges cannot be appealed.

    Provisions of paragraphs 1 and 2 of this Article shall accordingly apply also when circumstances

    change during proceedings before a panel of judges, or the plaintiff reduces the claim, so that the

    lawsuit should be adjudicated by a judge sitting alone. If a panel has ruled in a lawsuit that should

    have been adjudicated by a judge sitting alone, this ruling may not be contested on grounds that the

    decision has not been passed by a judge sitting alone.

    When a judge sitting alone finds during the proceedings, either ex officio or following anobjection of the parties that the litigation should be under the jurisdiction of a panel of judges of

    the same court, the litigation shall continue before the panel. This ruling of a judge sitting alone may

    not be appealed.

    Article 19

    If before passing of the decision on the subject of litigation, the court determines that the

    proceedings should be conducted pursuant to rules governing non-contentious proceedings, it shall

    rule to dismiss the litigation proceedings.

    After the ruling becomes effective, the proceedings shall be continued according to rules of non-

    contentious proceedings before a competent court.

    Article 20

    The court may, following an objection of the defendant, declare itself without territorial

    jurisdiction if the objection was filed at latest at the pre-trial hearing or, in the absence of such hearing,

    until the defendant commences to argue the subject matter of litigation on the first hearing of the trial.

    The court may declare itselfex officio without territorial jurisdiction only when there is exclusiveterritorial jurisdiction of another court, at latest at the pre-trial hearing or, in the absence of such

    hearing, until the defendant commences to argue the subject matter of litigation on the first hearing of

    the trial.

    Article 21

    After the decision on lack of jurisdiction becomes effective (Article 17 and 20) the court shall refer

    the case to a court of competent jurisdiction. Prior to referring the case to a competent court, the court

    shall, if necessary, request information from the prosecutor.

    The court of competent jurisdiction to which the case has been referred shall continue the

    proceedings as if the action has been initially filed with such court.If the decision on lack of jurisdiction has been passed at the trial, the court to which the case has

    been referred shall set the date for the trial and shall proceed as if the hearing is held before a modified

    panel (Article 317). If the decision on lack of jurisdiction has been passed at the pre-trial hearing, a

    new pre-trial hearing shall not be held if the judge president of the panel considers this unnecessary

    due to actions undertaken at the earlier pre-trial hearing.

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    Article 22

    If in the opinion of the court to which the case was referred as the court of competent jurisdiction,

    the court which referred the case, or another court, has jurisdiction, then it shall refer the case to that

    court which must resolve the conflict of jurisdiction, unless it finds that the case was referred due to an

    obvious oversight, and that it should have been referred to another court, in which case it shall refer

    the case to the appropriate court and so inform the court which referred the case to it.

    When the ruling on an appeal against the decision of a first-instance court proclaiming itself

    lacking territorial jurisdiction has been passed by a second instance court, this ruling with respect to

    jurisdiction shall be binding upon the court to which the case is referred, if the adjudicating second

    instance court has jurisdiction to adjudicate conflict of jurisdiction between these courts.

    The ruling of the second instance court on lack of subject-matter jurisdiction of the first instance

    court shall be binding upon any court to which the case may be later referred, if the second instance

    court has jurisdiction to adjudicate in conflict of jurisdiction between these courts.

    Article 23

    Conflict of jurisdiction between courts of the same type shall be resolved by the directly higher

    court to both courts.

    Conflict of jurisdiction between courts of different type in the territory of the Republic of Serbia

    shall be adjudicated by the Supreme Court.

    Article 24

    Conflict of jurisdiction may be adjudicated even when the litigants have not moved for a ruling on

    jurisdiction.

    Until the conflict of jurisdiction is resolved, the court to which the case is referred shall undertake

    those actions in the proceedings in respect of which there is risk of postponement.

    The ruling on conflict of jurisdiction may not be appealed.

    Article 25

    The court shall undertake actions within its territorial jurisdiction. However, if risk exists due to

    the postponement of undertaking such actions, the court shall undertake individual actions on theterritory of the adjacent court. The court on whose territory actions are undertaken shall be informed

    accordingly.

    Article 26

    Rules of international law shall apply to the jurisdiction of national courts to try foreign citizens

    enjoying immunity in Serbia and Montenegro and to try foreign countries and international

    organisations.

    Any doubt regarding the existence and degree of immunity shall be clarified by the authority in

    charge of judicial affairs.

    2. Jurisdiction of Courts in Actions with International Element

    Article 27

    A national court shall have trial jurisdiction when such jurisdiction for actions with international

    element is explicitly provided under law or international agreement. If the law or international

    agreement does not contain explicit provisions on jurisdiction of a national court for a specific type of

    litigation, a national court shall have jurisdiction to try such type of litigation where its jurisdiction

    derives from the provisions of the law relating to territorial jurisdiction of the national court.

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    3. Subject-matter Jurisdiction

    Article 28

    In civil action courts adjudicate within the limits of their subject-matter jurisdiction determined by

    the law.

    Determination of the Value of the Subject of Litigation

    Article 29

    When subject-matter jurisdiction, composition of the court panel, right to review and in other cases

    provided under this Law is determined by the value of the subject of litigation, only the value of the

    main claim shall be considered as the value of the subject of litigation.

    Interests, contractual penalties and other secondary claims, as well as litigation costs shall not be

    considered unless comprising the main claim.

    Article 30

    If the claim refers to future repetitive payments, the value of the subject of litigation shall be

    calculated as their aggregate value, but shall not exceed the amount equal to aggregate payments overa five-year period.

    Article 31

    If one action against the same defendant includes several claims founded on the same factual and

    legal basis, the jurisdiction shall be determined pursuant to the aggregate value of all claims.

    If claims in the action derive from various bases or if claimed against several defendants, the

    jurisdiction shall be determined pursuant to the value of each individual claim.

    Article 32

    The value in lease-related litigation is calculated according to annual lease, unless the lease

    agreement is concluded for a shorter period of time.

    Article 33

    If the complaint demands only issuance of surety for a certain claim or establishing of

    pledge rights, the value of the subject of litigation is determined pursuant to the amount of the claim

    requiring surety. However, if the pledged item has lesser value than the claim requiring surety, the

    value of the pledged item shall be taken as the value of the subject of litigation.

    Article 34

    If the complaint does not refer to a pecuniary amount and the plaintiff states in the complaint that

    he/she agrees to accept a certain pecuniary amount in lieu of fulfilment of the claim, suchamount shall be taken as the value of the subject of litigation.

    In other cases, where the complaint does not refer to a pecuniary amount, the value of thesubject of litigation stated by the plaintiff in the complaint shall be deemed relevant.

    If in cases specified in paragraph 2 of this Article, the plaintiff has manifestly exaggerated or

    understated the value of the subject of litigation, the court shall, not later that the pre-trial hearing,

    and if the pre-trial hearing was not held, then at the trial but before commencing hearing on thesubject-matter, expeditiously and pertinently verify the accuracy of the stated value.

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    4. Composition of the Court

    Article 35

    In civil actions the court shall sit as a panel of judges or in general session.

    Cases adjudicated by a judge sitting alone are set out by law.

    The judge president of the panel may undertake only those actions in the proceedings and pass

    only those decisions as authorised under the law.

    Unless otherwise set out by law, a judge sitting alone shall have all rights and duties of a judge

    president of a panel and of the panel of judges in adjudicating matters under his/her jurisdiction.

    Article 36

    A panel of judges or a judge sitting alone tries civil actions in the first instance.

    When sitting in the first instance, the panel comprises a judge president of the panel and two lay

    judges.

    Article 37

    A judge sitting alone tries civil actions concerning property claims where the subject of action

    does not exceed 3,000,000 dinars.The parties may agree during the proceedings that a judge sitting alone try a property-related claim,

    regardless of the value of the subject of litigation, except where otherwise provided by other law.

    A judge sitting alone sits in actions for trespass.

    A judge sitting alone conducts proceedings and rules in cases related to legal aid.

    A panel of judges in the first instance, regardless of value, tries copyright litigations, litigations

    related to protection and application of inventions and technical improvements, samples, models,stamps or marks of geographical origine, right to use company name or title.

    Article 38

    When sitting in the second instance, at a panel session or at a hearing, the court shall rule as a

    panel comprising three judges. The same composition of a higher court shall rule in conflict ofjurisdiction (Article 23) and in all other case unless otherwise stipulated by this Law.

    The Supreme Court shall sit as a five-judge panel when ruling on the review of proceedings and

    motion for protection of legality against an effective ruling of the lower court.

    If the final decision has been passed by the Supreme Court, a seven-judge panel of the same

    court shall rule on the review of proceedings and motion for protection of legality.

    5. Territorial Jurisdiction

    ) General Territorial Jurisdiction

    Article 39

    The court with general territorial jurisdiction for the defendant shall have trial jurisdiction unless

    the law specifies exclusive territorial jurisdiction of another court.

    In cases provided under this law, other specific courts shall have trial jurisdiction in addition to

    courts of general territorial jurisdiction.

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    Article 40

    A court on whose territory the defendant has permanent residence shall have general territorial

    jurisdiction for trial.

    If the defendant has no permanent residence in the Republic of Serbia or any other country, the

    court where the defendant has temporary residence shall have general territorial jurisdiction.

    If the defendant has, in addition to a permanent residence, a temporary residence elsewhere, and it

    may be assumed due to circumstances that he/she shall reside there over a longer period of time, the

    court of temporary residence of the defendant shall also have general territorial jurisdiction.

    Article 41

    In actions brought against Serbia and Montenegro, the Republic of Serbia, local self-government

    units and other forms of territorial organisation, the court on whose territory its Assembly is located

    shall have general territorial jurisdiction for trial.

    In actions against a legal entity, the court on whose territory is the seat of such legal entity shall

    have general territorial jurisdiction for trial. In event of doubt, the place where their managing

    bodies are located shall be taken as the seat.

    Article 42

    In actions against a citizen of Serbia and Montenegro with permanent address in a foreign country

    where he/she has been posted or transferred to work by a government authority or legal entity, the

    court of his/her previous residence shall have general territorial jurisdiction.

    b) Special Territorial Jurisdiction

    Jurisdiction for Two or More Persons as Defendants/Plaintiffs

    Article 43

    If an action is brought against a number of persons (Article 199, paragraph 1, point 1), and

    the same court does not have territorial jurisdiction for all of them, the court with territorialjurisdiction for one of the defendants shall have jurisdiction. Where there are principal or secondary

    obligors, the court with territorial jurisdiction for one of the main obligors has territorialjurisdiction.

    Jurisdiction in Civil Actions for Legal Support

    Article 44

    Both the court with general territorial jurisdiction and the court on whose territory the plaintiff has permanent and/or temporary residence shall have jurisdiction in civil actions related to

    legal support where the plaintiff is the party requesting support.

    Where a national court has jurisdiction in legal support litigation cases with international element

    because the plaintiff has permanent residence in the Republic ofSerbia, the court on whoseterritory the plaintiff has permanent residence shall have territorial jurisdiction.

    If a national court has jurisdiction in legal support litigation because the defendant has

    property in the Republic of Serbia that support payment can be collected from, the court on whose

    territory such property is located shall have territorial jurisdiction.

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    Jurisdiction in Damage Compensation Actions

    Article 45

    A court on whose territory the damaging act was committed or where damaging results occurred

    shall have jurisdiction in actions for non-contractual damage liability, in addition to the court of

    general territorial jurisdiction.

    If damages resulted due to death or serious bodily harm, the court on whose territory the plaintiff

    has permanent and/or temporary residence shall also have jurisdiction in addition to the court specifiedin paragraph 1 of this Article.

    Provisions of paragraphs 1 and 2 of this Article shall apply also in actions brought againstinsurance organisations for third party indemnification pursuant to regulations on direct

    liability of insurance organisations, and the provisions of paragraph 1 of this Article also in

    recourse actions against recourse debtors.

    Jurisdiction in Actions for Protection of Rights Deriving from ManufacturersWarranty

    Article 46

    In civil actions for protection of rights deriving from written manufacturers warranty, boththe court with territorial jurisdiction for the defendant and the court with territorial jurisdiction forthe seller who delivered the manufacturers written warranty to the purchaser at the time of sale

    shall have jurisdiction.

    Jurisdiction in Marital Litigation

    Article 47

    In addition to the court of general territorial jurisdiction, the court on whose territory the wedded

    couple had their last mutual permanent residence shall have jurisdiction in litigation to

    determine existence or non-existence of marriage, annulment of marriage or divorce (marital

    litigation).

    If a national court has jurisdiction in marital litigation because the wedded couple had their

    last mutual permanent residence in the Republic of Serbia and/or because the plaintiff has permanentresidence in the Republic of Serbia, the court on whose territory the wedded couple had their last

    mutual permanent residence or the court on whose territory the plaintiff has permanent residenceshall have territorial jurisdiction.

    Article 48

    If a national court has jurisdiction in marital litigation related to property because theproperty of

    the wedded couple is in the Republic of Serbia or because the plaintiff has permanent or

    temporary residence in the Republic of Serbia at the time of filing of the action, the court onwhose territory the plaintiff has permanent or temporary residence at the time of filing of theaction shall have territorial jurisdiction.

    Jurisdiction in Paternity or Maternity Suits

    Article 49

    A child may bring an action for determining or contesting of paternity or maternitybefore any

    court of general territorial jurisdiction or before the court where they have permanent or

    temporary residence.

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    If a national court has jurisdiction in a paternity or maternity suit because the plaintiffs residence

    is in the Republic of Serbia, the court on whose territory the plaintiff has permanent residence shall

    have territorial jurisdiction.

    Jurisdiction in Civil Actions Related to Real Property and Trespass

    Article 50

    Litigation regarding ownership rights and other real rights on real property, actions for trespass onreal property, and litigation concerning property lease, shall be under exclusive jurisdiction of the

    court where the real property is located.

    If the real property lies on the territory of several courts, each of the courts shall havejurisdiction.

    Actions for trespass on chattels are under jurisdiction of the court where the trespass occurred in

    addition to the court of general territorial jurisdiction.

    Jurisdiction in Aircraft and Ship Litigation

    Article 51

    Where a national court has jurisdiction for lawsuits concerning ownership rights and other realrights over an aircraft, ship and inland waterway vessel, and for lawsuits concerning lease of aircraft or

    ship, the court where the register in which the aircraft or ship/vessel is recorded shall have exclusive

    territorial jurisdiction.

    Where a national court has jurisdiction in trespass actions for ships and/or aircraft specified in

    paragraph 1 of this Article, the court on whose territory the trespass occurred shall have territorial

    jurisdiction in addition to the court on whose territory the ship and/or aircraft is entered in the records.

    Jurisdiction for Persons without General Territorial Jurisdiction inthe Republic of Serbia

    Article 52

    Property-related action against persons without general territorial jurisdiction in the Republic of

    Serbia may be filed with any national court on whose territory any property or objects of such person

    claimed by the action are located.

    If there is territorial jurisdiction of a national court because the obligation occurred during the

    sojourn of the defendant in the Republic of Serbia, the court on whose territory the obligation occurred

    shall have territorial jurisdiction.

    In actions against persons having no general territorial jurisdiction in the Republic of Serbia, a

    claim for obligations to be fulfilled in the RS may be filed with the court on whose territory such

    obligation is to be fulfilled.

    Jurisdiction by Virtue of Location of a Legal Entitys Operating Unit

    Article 53

    In actions brought against a legal entity having an operating unit outside its headquarters, if the

    action derives from the legal relation of such unit, the court on whose territory such operating unit is

    located shall have jurisdiction in addition to the court of general territorial jurisdiction.

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    Jurisdiction Pursuant to Representative Office of a Foreign Entityin the Republic of Serbia

    Article 54

    In lawsuits against a natural or legal entity with headquarters abroad in regard to obligations

    established in the Republic of Serbia, or which have to be discharged here, a complaint may be

    filed with a court on whose territory is the entitys permanent representative office or the headquarters

    of the entity authorised to discharge its business.

    Jurisdiction for Lawsuits against Military Units or Institutions

    Article 55

    In lawsuits against Serbia and Montenegro involving military units and/or institutions, thecourt on whose territory is the command headquarters of the military unit and/or institutions shall have

    exclusive jurisdiction.

    Jurisdiction for Probate-related Civil Actions

    Article 56

    Until the conclusion of a probate action, the court on whose territory is the court conductinginheritance proceedings shall have territorial jurisdiction in addition to the court of generalterritorial jurisdiction for lawsuits pertaining to inheritance relations and lawsuits concerning claims of

    creditors against the testator.

    Jurisdiction in Enforcement and Bankruptcy Proceedings

    Article 57

    In lawsuits arising during and due to judicial or administrative enforcement proceedings, and/or

    during and due to bankruptcy proceedings, the court on whose territory is the court of competent

    jurisdiction conducting enforcement and/or bankruptcy proceedings or the court conducting

    administrative enforcement, shall have exclusive territorial jurisdiction.

    Jurisdiction Pursuant to Place of Payment

    Article 58

    The court in place of payment shall have jurisdiction in addition to the court of general territorial

    jurisdiction for lawsuits of a bill or check holder against the signatory.

    Jurisdiction in Labour-related Civil Actions

    Article 59

    If in a labour-related lawsuit the plaintiff is an employee, the court on whose territory workis or was performed, shall have concurrent jurisdiction with the court of general territorialjurisdiction for the defendant.

    Reciprocal Jurisdiction for Complaints against Foreign Citizens

    Article 60

    If in a foreign country civil action may be brought against a citizen of Serbia and Montenegro

    before a court that under this Law would not have territorial jurisdiction to try such civil matter, the

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    same jurisdiction shall be valid for actions against a citizen of that foreign country before a national

    court.

    c) Determining of Territorial Jurisdiction

    by a Higher Court

    Article 61

    If the court of competent jurisdiction due to exemption or disqualification of a judge or other

    reasons cannot adjudicate in a particular case, it shall so inform the directly higher court which shalldesignate another court of subject-matter jurisdiction from its territory to adjudicate in that case.

    Article 62

    The highest court of particular type the Republic may, at the motion of a litigant orthe court ofcompetent jurisdiction, determine that another court of subject-matter jurisdiction from its

    territory adjudicate in a particular case if it is apparent that this would facilitate the conduct of

    proceedings or if other important reasons exist for doing so.

    Should a litigant repeat the motion to designate another court of subject matter jurisdiction, the

    court shall reject it.

    A judge of the first-instance sitting alone issues the decision referred to under paragraph 2 of this

    Article. This decision may not be appealed.

    Article 63

    If a Serbian court has jurisdiction, but it cannot be determined under provisions of this Law

    which court has territorial jurisdiction, the Supreme Court shall, at the motion of a litigant, determine

    which court of subject-matter jurisdiction shall have territorial jurisdiction.

    d) Agreement on Territorial Jurisdiction

    Article 64

    Unless exclusive jurisdiction of another court is provided under law, the parties may agree to try

    the case in the first instance before a court without territorial jurisdiction, providing that such court has

    subject-matter jurisdiction.

    If the law provides territorial jurisdiction of two or more national courts in a particularlawsuit, the parties may agree to try the case before one of these courts in the first instance or another

    court of subject-matter jurisdiction.

    This agreement is valid only if concluded in writing and if relating to a particular civilaction or several actions arising from a particular legal relation.

    The plaintiff must attach the document on the agreement with the complaint, and the defendant

    must attach it with a plea of lack of jurisdiction or a reply to the complaint.

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    Chapter Three

    EXCLUSION AND DISQUALIFICATION

    Article 65

    A judge shall refrain from adjudicating if there are reasons for doubt about their impartiality.

    Article 66

    A judge shall not perform judicial function (exclusion):

    1) if they are a party to the proceedings, legal representative or attorney of a party, if under co-

    attorneyship relations with the party, co-defendant or recourse defendant, or if questioned as witness

    or expert in the same case;

    2) if a shareholder, member of a business company or co-operative business and one of theparties is his/her creditor or debtor;

    3)if a party or a legal representative or attorney is his/her lineal relative to any degree,and lateral relative to fourth degree, or is a spouse or common-law spouse (current or former) or in-law to second degree, regardless whether the marriage has ceased or not;

    4) if he/she is a guardian, adoptive parent or adopted child of a party to the proceedings, theirlegal representative or attorney; if the judge and a party or their legal representative or attorney have a

    common household;

    5) if the judge and a person specified under this paragraph are parties to the proceedings inanother lawsuit or there is a conflict of interests between them;

    6)if he/she participated in mediation, passing of the ruling of a lower instance court orother authority in the same case or if he/she participated in a court settlement which is

    challenged in a civil action;

    7) if he/she participated as a judge or member of bankruptcy council in bankruptcyproceedings which are the subject of a dispute.

    A judge may be disqualified if there are circumstances which throw doubt on their impartiality

    (disqualification).

    Article 67

    A judge shall, immediately upon becoming cognisant of the existence of any of the reasons for

    exclusion specified in Article 66, paragraph 1, points 1 through 7 hereof, cease any work on the case

    and so inform the president of the court who shall appoint a replacement.

    If in the opinion of a judge there are circumstances which make his/her impartiality questionable

    (Article 65 and 66 point 2), they shall stop the proceedings and so inform the president of the court

    who shall decide on disqualification. Until such decision is passed, the judge may undertake only such

    actions where risk of delay exists.

    Article 68

    Parties to the proceedings may also request exclusion or disqualification of the judge.

    A party may only request exclusion or disqualification of the judge adjudicatingparticular case.A party shall submit a motion immediately upon becoming aware that reasons for exclusion ordisqualification exist, and not later than the conclusion of hearing before the first instance court. If

    there was no hearing, such motion must be submitted prior to passing of the ruling.

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    A party may file a motion for exclusion or disqualification of a higher court judge in an appeal or a

    reply to an appeal, and where the proceedings are conducted before a higher court, before the

    conclusion of the hearing.

    A party is required to explain reasons and state circumstances on which their request is based.

    Article 69

    A motion for exclusion or disqualification is inadmissible if:

    1) such motion requests the disqualification of all the judges of particular court or all thejudges who could participate in particular proceedings;

    2) a decision on such motion has already been made;3) it does not state legal basis for such motion.

    A judge adjudicating the case shall issue a decision to reject an inadmissible motion specified

    under paragraph 1 of this Article.

    The decision referred to in paragraph 2 of this Article may not be appealed.

    If the court rejects a motion, it may pass a special decision by which the opposite party is ordered

    to bear the costs incurred by the delay of the proceedings.

    The decision specified under paragraph 4 of this Article may not be appealed.

    Article 70

    The president of the court shall rule on the motion for exclusion or disqualification.

    The president of a directly higher court shall rule on motion for exclusion or disqualification of the

    president of the court.

    A motion for disqualification of the president of the Supreme Court of Serbia, shall bedecided by the general session of this court.

    Prior to passing the ruling on disqualification, statements will be taken from the judgewhose disqualification is requested, and if necessary other investigation will be undertaken.

    A ruling on exclusion or a ruling sustaining the motion for disqualification may not beappealed, and no special appeal is allowed against a ruling rejecting a motion for disqualification.

    Article 71

    When a judge becomes aware of the motion for their exclusion or disqualification, they shall

    immediately halt any work on the case in question, and in the event of disqualification specified in

    Articles 65 and 66, point 2 hereof, they may undertake only those activities, until the ruling on the

    motion is passed, where there is a risk of delay.

    Article 72

    Provisions on exclusion and disqualification of judges shall accordingly apply to presidents of

    court, lay judges and court reporters.

    A lay judge shall not perform judicial function (exclusion) if they are permanently or temporarily

    employed with an entrepreneur or legal entity who is a party to the proceedings.

    The president of the panel, that is the panel and/or a judge sitting alone shall decide on thedisqualification of court reporter.

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    Chapter Four

    PARTIES AND THEIR LEGAL REPRESENTATIVES

    Article 73

    Any natural person or legal entity may be a party to the proceedings.

    Separate regulations shall set out who, in addition to natural persons and legal entities, may bea party to the proceedings.

    A litigation court may exceptionally, and with legal effect in a particular case, recognise attributes of

    a party to the proceedings to such forms of association that do not have litigant competence in terms of

    provisions of paragraphs 1 and 2 of this Article if it determines that, due to the subject of litigation,

    they essentially fulfil the vital prerequisites for acquiring litigant competence, and especially if they

    dispose with property on which enforcement may be conducted.

    No special appeal shall be allowed against the ruling specified in paragraph 3 of this Article

    recognising litigant competence.

    Article 74

    A party with complete legal competence may themselves undertake acts in the proceedings

    (litigation competence).

    A person of legal age with partially limited legal competence shall be competent for litigation

    within limits of his/her legal competence.

    A minor shall be competent for litigation within the limits of recognised legal competence.

    Article 75

    A party without litigation competence shall be represented by their legal representative.

    Article 76

    A legal representative may undertake all actions in the proceedings on behalf of the party.However, if other regulations provide that a legal representative must have special authorisation for

    filing or withdrawing of the complaint; filing of a motion for recognising or refuting the claim;

    for conclusion of settlement; for filing, withdrawing or waiving an appeal, they may undertakesuch actions only if so authorised.

    Article 77

    Throughout the proceedings, the court shall ex officio check whether the person appearing as aparty may be a party to the proceedings; whether such person has litigation competence; is a party

    lacking litigation competence represented by their legal representative and does the legal

    representative have special authorisation when such is required.

    A person appearing as a legal representative shall prove the capacity of representative whenfirst appearing before the court.

    A legal representative shall submit special authorisation for particular actions in the proceedings

    where such authorisation is required.

    If the court finds that the legal representative of a person under guardianship does not show

    necessary interest in representing the party, it shall so inform the social welfare agency. If the neglect

    on the part of the legal representative can cause damage to the person under guardianship, the court

    shall halt the proceedings and propose to appoint a new representative.

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    Article 78

    When the court determines that a person appearing as a party cannot be a party to the proceedings,

    and such deficiency may be corrected, the court shall invite the plaintiff to make the necessary

    corrections in the complaint.

    If the court determines that a party does not have a legal representative or that the legal

    representative does not have special authorisation when such is required, it shall request that the social

    welfare agency appoint a guardian for the person without litigation competence, or shall undertake

    other measures required for proper representation of a person without litigation competence.

    The court may set a deadline for the party to correct the deficiencies specified in paragraph 1 and 2.

    of this Article.

    Until such deficiencies are corrected, only such activities may be undertaken in the proceedings

    whose delay could result in detrimental consequences.

    If the mentioned deficiencies cannot be corrected or if the set deadline passes withoutcorrection of such deficiencies, the court shall rule to revoke actions undertaken in the

    proceedings if affected by these deficiencies and shall reject the complaint if the deficiencies are of

    such nature that prevent further litigation.

    The ruling ordering measures forcorrection of deficiencies cannot be appealed.

    Article 79

    If during the proceedings before a first-instance court it becomes apparent that regularproceedings for appointment of legal representative for the defendant would be protracted, and hence

    with prejudicial consequences for one or both parties, the court shall appoint a temporary

    representative for the defendant. He/she is selected from the list of barristers submitted to the

    court by the Bar Association.

    Under conditions specified in paragraph 1 of this Article the court shall appoint a temporary

    representative for the defendant particularly in the following cases:

    1) if the defendant lacks litigation competence, and has no legal representative;

    2) if conflicting interests exist between the defendant and his/her legalrepresentative;

    3)if both parties have the same legal representative;

    4)if permanent or temporary residence of the defendant is unknown, and the defendant has noattorney;

    5)if the defendant or his/her legal representative, who have no attorney, are abroad andservice could not be carried out.

    The court may also appoint a temporary legal representative for a legal entity or entrepreneur

    under the conditions and in the manner stipulated in paragraph 2 of this Article.

    The court passes a decision on the appointment of a temporary legal representative. The court shall

    without delay inform the social welfare agency about the appointment of temporary representative as

    well as the parties, when so possible.

    The decision specified in paragraph 4 of this Article may not be appealed.

    Article 80

    A temporary representative shall have all rights and duties of a legal representative during the

    proceedings.

    A temporary representative undertakes all actions before the court until such time as a party, their

    legal representative or attorney appear before the court or until the social welfare agency notifies the

    court on the appointment of a guardian.

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    Article 81

    If a temporary representative has been appointed for the defendant due to reasons specified in

    Article 79, paragraphs 2, points 4 and 5 hereof, the court shall issue a notification which shall be

    published in the Republic Official Gazette and on the notice board of the court, and otherwise if

    necessary by other appropriate means.

    The notice should contain designation of the court appointing a temporary representative, name of

    the defendant for whom a representative is appointed, subject of litigation, name of representative,

    his/her occupation and address, as well as a caveat that the representative shall represent the defendant

    until such time as the defendant or his/her attorney appear before the court, and/or until the social

    welfare agency notifies the court on appointing of a guardian.

    Article 82

    Litigation competence of a citizen of Serbia and Montenegro is assessed pursuant to the republic

    law, relevant for the determination of legal competence.

    A citizen of Serbia and Montenegro without litigation competence pursuant to the republic law

    which is relevant for assessment of his/her legal competence, whilst being competent pursuant to law

    of the republic before whose court the proceedings are conducted, may himself/herself undertake

    actions in the proceedings. His/her legal representative may undertake actions only until such time

    as the citizen declares that he/she shall undertake the conduct of the litigation.

    Article 83

    A foreign citizen lacking litigation competence pursuant to the law of the country of their

    citizenship, and has competence pursuant to the national law, may themselves undertake actions in the

    proceedings. A legal representative may undertake actions only until such time as the foreign citizen

    declares that they shall undertake the conduct of the litigation.

    Chapter Five

    ATTORNEYS

    Article 84

    Parties may undertake actions in the proceedings personally or through an attorney.

    A party must have a legal counsel in the review proceedings or the proceedings initiated for the

    protection of legality.

    Representation of the state, member country and its bodies, units of territorial authonomy and local

    government is regulated by special regulations.

    The court may request from a party represented by an attorney to personally declare itself before

    the court regarding a fact to be determined in the litigation.

    A party represented by an attorney may always appear before the court and give statements in

    addition to their attorney and undertake actions in the litigation.

    Article 85

    Any natural person with full legal competence may be an attorney, except persons engaged

    in quasi notaryship.

    If a person engaged in quasi notaryship appears as attorney, the court shall deny such

    person further representation and shall so inform the party without delay.

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    An appeal against the ruling denying representation shall not suspend enforcement thereof.

    Article 86

    Actions undertaken in the proceedings by an attorney within the limits of authorisation have the

    same legal effect as if undertaken by the party itself.

    Article 87

    A party may change or revoke an action of their attorney.

    If an attorney acknowledges a fact at a hearing on which the party is not present, or acknowledges

    a fact in a filing, and the party subsequently changes or revokes such acknowledgement, the court shall

    deliberate both statements in terms of Article 222, paragraph 2 hereof.

    Article 88

    The extent of authorisation is determined by a party.

    A party may authorise the attorney to undertake only certain actions or to undertake all

    actions in the proceedings.

    An attorney who is a barrister may be substituted by a legal trainee who works in the sameoffice if a party states so in the power of attorney.

    Article 89

    If a party issues a power of attorney to a legal counsel to conduct the litigation without specifying

    the scope of authorisation, the counsel, on basis of such power of attorney, is authorised to:

    1) conduct all actions in the proceedings, and in particular to file the complaint, to withdraw it, toadmit the claim or to renounce the claim, to conclude a settlement, to file legal remedy and to

    renounce or waive it, and to request an injunction for temporary security measures;

    2) file a motion for enforcement or securing and to undertake necessary actions in proceedingsrelating thereto;

    3 to transfer the power of attorney to another legal counsel or to authorise another legal counsel to

    undertake only particular actions in the proceedings.

    To file a motion for re-trial, the legal counsel requires a special power of attorney.

    Article 90

    If a party does not specify in the power of attorney the authorisation of the attorney, the attorney

    who is not a lawyer may on basis of such power of attorney undertake all actions in the

    proceedings but will always require an express authorisation to withdraw the complaint, to

    acknowledge or reject the complaint, to conclude a settlement, to withdraw or waive an appeal and to

    transfer power of attorney to another.

    Article 91

    A party gives the power of attorney in writing.

    If the court doubts the veracity of a written power of attorney, it may rule for submitting a certified

    power of attorney. This ruling may not be appealed.

    Article 92

    An attorney is required to submit the power of attorney at the first act in the proceedings.

    The court is required to monitor throughout the proceedings whether the person appearing as an

    attorney is authorised for representation. If the court determines that the person appearing as an

    attorney is not authorised for representation, it shall revoke all litigation acts undertaken by suchperson, unless subsequently approved by the party.

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    Article 93

    A party may revoke the power of attorney at any time and the attorney may relinquish it at any

    time.

    The court before which the proceedings are conducted must be informed of revocationand/or relinquishing the power of attorney, in writing or orally on record.

    Revoking and/or relinquishing the power of attorney shall be valid for the other party fromthe moment it is so notified.

    The attorney is required to act on behalf of the person giving him/her power of attorney for one

    month following the relinquishment of the power of attorney if necessary to prevent any damages for

    such person that could occur within this period.

    Article 94

    A power of attorney ceases to be valid due to the death of a natural person.

    If the attorney holds a power of attorney to undertake all acts in the proceedings and the party,

    and/or its legal representative dies or becomes legally incompetent, or if the legal representative is

    dismissed, the attorney remains authorised to undertake acts in the proceedings which may not be

    delayed.

    In cases mentioned in paragraph 2 of this Article, powers that have to be expressly stated in the

    power of attorney (Article 90) shall always cease for an attorney who is not a lawyer.

    Article 95

    With the dissolution of a legal entity, the power of attorney issued by it shall cease.

    As an exception to provision of paragraph 1 of this Article, the attorney is required to continueundertaking actions in the proceedings which may not be delayed for anothermonth.

    Chapter 6

    LANGUAGE OF THE PROCEEDINGS

    Article 96

    Parties and other participants to the proceedings are entitled to use their own language during

    hearings and when orally undertaking other actions before the court. If such proceedings are not in the

    language of the parties or other participants to the proceedings, they will, upon request, be provided

    with an interpretation of the proceedings in their own language, including oral translations of all

    documents used as evidence during the proceedings.Parties and other participants in the proceedings are advised that they are entitled to have the

    proceedings interpreted into their own language by a sworn-in court translator. It is to be recorded in

    the transcript that they have been advised as well as the statements made by the parties or participants

    thereupon.Interpretation is done by sworn-in court translators.

    Article 97

    Summonses, decisions and other documents relating to the case which are sent to the parties and

    other participants to the proceedings shall be in the Serbian language.

    If the language of a national minority is also in official use at the court, the court shall send its

    documents in this language to the parties and participants to the proceedings who are members of the

    minority and speak their own language before the court.

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    Article 98

    Parties and other participants to the proceedings must submit their complaints, appeals and

    other filings with the court in a language which is in official use at the court.

    Parties and other participants to the proceedings may also write their filings in the language of a

    national minority which is not in official use at the court, provided it is in accordance with the law.

    Article 99

    The court bears the costs of interpretation into the language of a national minority incurred in

    accordance with the provisions of the Constitution and this Law governing the rights ofmembers of national minorities to use their own language.

    Chapter 7

    FILINGS

    Article 100

    A complaint, counterclaim, reply, and legal remedy are submitted in writing.

    Filings must be clear and contain all the information which is necessary to allow the trial to

    proceed. In particular, they should identify the court, state a full name of a person, the name of a firm,

    permanent or current address or headquarters of the parties, their legal representatives and/or attorneys,

    if any, the subject of litigation, and the statement and signature of the plaintiff.

    If the statement contains a claim, a party should state the facts on which the claim is based and

    present evidence, when necessary.

    Article 101

    All filings and attachments to filings to be sent to the other party must be filed with a sufficientnumber of copies so that they may be filed at the court and sent to the other parties to the proceedings.

    If there are two or more parties on the same side with the same legal representative or attorney, it

    is sufficient that the other party to the proceedings send only one copy of the filings and attachments

    to the court.

    Article 102

    Documents attached with the filing may be submitted either as original documents or transcripts.

    The court shall keep an original document and allow the other party to the proceedings to examine

    the document. When there is no need for the court to retain the document, it will be returned to its

    owner upon request. The court may request the party who submitted the document to file atranscript with the court.

    If a transcript is filed the court may, upon request of the other parties to the proceedings, request

    that the party submitting the document produce the original to the court and allow it to be examined by

    the other parties to the proceedings. If necessary, the court shall determine a time limit for the filing

    and examination of the original document or transcript.

    These decisions may not be appealed.

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    Article 103

    If the filing is unclear or does not contain all the information necessary to allow the proceedings to

    continue, the court shall return the filing to a party who has no legal counsel to correct it, unless

    otherwise provided by law.

    When the court returns the filing to a party for correction or amendment.it sets a time limit to

    resubmit the filing.

    If the corrected or amended filing is submitted to the court within the set time limit, the date of

    original filing shall be considered as the date of filing.If the filing is not resubmitted within the set time limit, it shall be considered withdrawn, and in

    the event that it is resubmitted without being corrected or completed, it shall be rejected.

    If there are not a sufficient number of copies of filings and attachments, the court willphotocopy them at the expense of the party who neglected the obligation.

    The provisions of this Article do not apply where a party has a legal counsel. If the counsel

    submits an unclear and incomplete filing, the court shall reject it.

    Article 104

    A civil court shall impose a fine of 30,000 dinars on a person whose filing offend the court, the

    other party or participant to the proceedings.

    The fine referred to in paragraph 1 of this Article does not affect a penalty for a criminal offence.If the the fine could not be collected even under coercion, the fine, i.e. its remaining unpaid part

    shall be replaced with a term of imprisonment proportional to the fine, but not exceeding ten

    days.

    The provision in paragraph 3 of this Article shall apply whenever a fine is imposed by the

    court (Articles 247, 254 and 319).

    Chapter 8

    TIME LIMITS AND HEARINGS

    Article 105

    If time limits are not set by law, the court sets them based on the circumstances of the case.

    Article 106

    Time limits are calculated in days, months and years.

    The first day of a time limit expressed as a number of days is the day after the day of service or

    notification of a decision or after the day of the occurrence of the event from which the time limit is

    calculated according to law.

    A time limit expressed as a number of months or years ends with the expiry of that date of the final

    month or year which is the same as the date when the time limit was set by the court, or the date ofthe occurrence of the event from which the time limit is calculated according to law.

    If the last day of a time limit is a public holiday or Sunday or other non-working day, the time

    limit ends upon the expiry of the next working day.

    The provisions of paragraph 4 of this Article also apply to time limits where a complaint must be

    filed in accordance with special regulations, as well as to the statute of limitations for a claim or other

    right.

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    Article 107

    If there is a time limit to submit a filing, it shall be considered that the filing is submitted in time if

    it is submitted before the end of such time limit.

    If a filing is sent to the court by registered mail or telegraph, the date of delivery to the post office

    shall be considered the date of filing it with the court.

    If a filing is sent by telegraph, it shall be considered timely only if a proper filing is submitted with

    the court or sent to the court by registered mail within 3 days of delivering the telegram to the post

    office.

    For conscripts in the Army of Serbia and Montenegro and other persons serving in military units

    or institutions, the day of submitting a filing to a military unit or institution is considered the day of

    filing with the court.

    For persons in places of detention, the day of submitting a filing to the penitentiary institution is

    considered the day of filing with the court.

    If a filing is submitted or mailed to a court which has no jurisdiction before the end of a time limit,

    and it reaches the court of jurisdiction after the end of the time limit, it shall be considered that it was

    filed in time if the failure to send it to the court of jurisdiction can be justified by the lack ofknowledge or obvious mistake of the person who filed it.

    The provisions of paragraphs 1 and 6 of this Article also apply to time limits where a complaint

    must be filed in accordance with special regulations, as well as to the statute of limitations for a claim

    or other right.

    Hearings

    Article 108

    Hearings are scheduled by the court in accordance with law or requirements of the proceedings.

    Decisions on scheduling a hearing may not be appealed.

    The court shall timely summon the parties and other persons whose presence is required during a

    hearing. The summons is served with a filing that was the cause for the hearing, and it identifies therelevant venue, room and time. If the summons is served without a filing, it must identify the parties,

    subject of litigation and act to be done at the hearing.

    The summons must also advise on the legal consequences of failing to appear at a hearing.

    Article 109

    Hearings normally take place at the court.

    The court may decide to hold a hearing outside of the court premises if it is considered necessary,

    and/or will save time or reduce the costs of the proceedings. Such decisions may not be appealed.

    Article 110

    The court may postpone a hearing if necessary to present evidence or for other justifiable reasons.

    If a hearing is postponed, the court shall, if possible, immediately inform the present about the

    time and venue of the next hearing.

    The decision on postponement of a hearing may not be appealed.

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    Restitutio in integrum

    Article 111

    If a party fails to appear at a hearing or comply with a time limit for doing an act and therefore

    loses the right to do such act, the court shall allow the party, upon request, to subsequently do

    such act (restitutio in integrum), should it find that there was good cause for the failure.

    Ifrestitutio in integrum is allowed, the proceedings is restored into the state it wasprior to thefailure and all the decisions of the court made on account of the failure are revoked.

    Article 112

    A motion forrestitutio in integrum is filed in the court where the act should have been done.The motion must be filed within eight days, where the first day is that when the reason causing the

    failure ceased to exist, and if a party became aware of the failure only later, the first day of this period

    is the day they became aware of it.

    Restitutio in integrum may not be requested if more than sixty days passed after the day offailure.

    If restitutio in integrum is requested because of a failure to comply with a time limit, therequesting party shall do the act concurrently with requesting restitutio in integrum.

    Article 113

    Restitutio in integrum will not be allowed if the time limit set under Article 112, paragraphs 2and 3 was not met or if a party fails to appear at the hearing caused by such motion.

    Article 114

    A motion forrestitutio in integrum does not affect the course of the proceedings. The court maydecide to suspend the proceedings until a valid decision on this motion is made.

    Article 115

    The court passes a decision to reject untimely or inadmissible motions forrestitutio in integrum.

    The court shall reject a motion forrestitutio in integrum as invalid, if the facts underlying suchmotion are not generally known and a party failed to propose or submit appropriate evidence.

    The court, as a rule, deliberates on a motion forrestitutio in integrum, without a hearing.The court shall schedule a hearing if it finds that it is necessary to present evidence to establish the

    facts.

    Article 116

    A decision allowing restitutio in integrum may not be appealed, unless the motion was untimely orillegal.

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    Chapter 9

    TRANSCRIPTS

    Article 117

    All acts done during a hearing are recorded in a transcript.

    Important statements or notes made by a party or other participant to the proceedings outside ahearing are also recorded in the transcript. Statements or notes of minor importance are not recorded in

    the transcript but annotated on a document.

    Transcript is made by a court reporter.

    Article 118

    A transcript must include: the name of the court and composition of the court panel, the venue, day

    and time of the act, subject matter of litigation and the names of the present parties or third parties and

    their legal representatives or attorneys.

    A transcript must include main information about the act. The transcript of a hearing shall in

    particular state whether the hearing was open to public or not, statements of the parties, their proposals,

    evidence they proposed and evidence which was derived, statements of witnesses and expert witnesses,as well as the court decisions made at the hearing.

    Article 119

    A transcript must be kept in an orderly manner, nothing must be deleted from the transcript, added

    or changed.

    Article 120

    The presiding judge shall dictate to the court reporter the text for the transcript.

    The parties may read the transcript or request the transcript to be read to them and make theirobjections.

    Other persons whose statements have been recorded in the transcript may request the same, butonly of that part of the transcript containing their statements.

    Corrections or additions to the transcript that should be made on account of the objections of the

    parties or other participants orex officio are added to the end of the transcript. Overruled objectionsare also to be included in the transcript if the parties request so.

    Article 121

    The presiding judge, court reporter, parties or their legal representatives or attorneys, and thesworn-in court translator sign the transcript.

    A witness or expert witness signs their statements in the transcript if they give their testimony

    before a judge requested to take testimony or presiding judge.

    An illiterate person or a person who is not able to sign shall fingerprint the transcript and the courtreporter shall write his/her name under the fingerprint.

    Should a party or his/her legal representative or attorney, a witness or expert witness leave before

    the signature of the transcript or does not want to sign the transcript, this shall be recorded in thetranscript along with the reason stated for doing so.

    Article 122

    Deliberation and voting of the court panel are recorded in a separate transcript. If a higher court

    unanimously passes a decision on an appeal, a note on deliberation and voting shall be recorded on the

    original decision instead of a separate transcript.

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    The transcript of deliberation and voting contain information about voting and the decision made.

    Separate opinions are included in the transcript of deliberation and voting if they have notbeen included in the transcript of the proceedings.

    All members of the panel and the court reporter sign the transcript or note on voting.

    The transcript of deliberation and voting is then sealed in an envelope. It may be examined only by

    a higher court in the appeal proceedings, after which the transcript is to be closed and sealed againwith a note on the envelope that it has been examined.

    Chapter 10

    JUDGEMENT

    Article 123

    The decisions of the court have either the form of judgements or decisions.

    The court passes a judgement, except in the event of trespassing where the court passes a decision.

    Whenever the court does not pass a judgement, it passes a decision.

    In case of a claim for payment order, the decision approving the claim shall have the form of

    payment order.

    The ruling of the court related to costs which is included in the judgement is considered a decision.

    Article 124

    The court panel makes a decision after deliberation and voting.

    Only the members of the panel and the court reporter may be in the room where deliberation and

    voting take place.

    If simple issues are deliberated, the panel may make a decision without voting.

    Article 125

    The presiding judge chairs the deliberation and voting and votes the last. He/she shall ensure that

    all issues are considered comprehensively and thoroughly.

    All decisions must be made by majority vote of the panel.

    The members of the panel may not refuse to vote on issues raised by the presiding judge. A

    member who was in the minority in a previous voting may not refrain from voting on an upcoming

    issue.

    If the panel have two or more opinions, none of which is supported by a majority of votes, the

    issues under deliberation will be separated and voting repeated until one of the opinions gets a

    majority of votes.

    Article 126

    Prior to rendering a judgement on the main claim, the court must make a decision about possible

    extension of the proceedings and other issues.

    If deliberation on the main claim requires that decisions be made on several claims, there will be a

    separate vote on each of them.

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    Chapter 11

    SERVICE AND CONSIDERATION OF DOCUMENTS

    Service

    Article 127

    Documents related to the case are served, as a rule, by mail, but may also be served by a

    designated person of the court, by a competent municipal body, by a legal entity registered for delivery

    services, directly in the court premises or in another manner stipulated by a special statute.

    Article 128

    Service on public authorities, local self-government authorities and bodies of other territorial

    organisation is done by delivering a document to the responsible person in the office for the reception

    of documents.

    Service on the state or public prosecutor or public attorney is effected by filing a document in the

    registration room. The date of service is the date of delivery to the registration room.

    Service on legal entities is effected by delivering a document in the premises of the entity, to an

    employee authorised to receive deliveries.

    The service under paragraphs 1 and 3 of this Article is effected in the same way if the parties

    referred to in these paragraphs appointed one of their employees as their attorney.

    Article 129

    For the persons in the military and police, as well as employees of road, river, maritime and air

    transportation, service of the summons may be effected through theircommand or direct superior,as well as the service of other documents related to the case.

    Article 130

    If service is to be effected on persons or institutions abroad or foreigners enjoying immunity, it is

    effected through diplomatic channels, if not otherwise provided by an international agreement or thisLaw (Article 141).

    If service is to be effected on a citizen of Serbia and Montenegro who is abroad, it may be effected

    through the relevant consular or diplomatic representative of Serbia and Montenegro who is in

    charge of consular affairs in that country or an international legal entity registered for delivery

    services. Service is valid only if the person to be served agrees to receive the document.

    Service to legal entities with their seat abroad and an agency in Serbia and Montenegro may be

    effected to their agency.

    Article 131

    Persons in places of detention shall be served through the administration of the penitentiary

    institution.

    Article 132

    If a party is represented by legal representative or attorney, service is effected on the legal

    representative or attorney, if not otherwise provided by this Law.

    If a party has two or more legal representatives or attorneys, service may be effected on one of

    them.

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    Article 133

    Service on a legal counsel in the capacity of attorney may be effected by delivery of adocument to an employee in his/her office.

    Service on a legal counsel may be effected by delivering a document to an adult member of the

    counsels household if they have an office in the home.

    Article 134

    Service is effected on any day at workplace or in the home from 7:00a.m. to 10:00p.m., or in thecourt when the person to be served is found there.

    Service may be effected at other time and place pursuant to a special court decision. The person

    effecting service must show such decision upon request.

    Article 135

    If a party to be served with a document is not at home, the document is delivered to a grown-up

    member of the household who must receive the document. Should no one be at home, the document is

    delivered to a neighbour who agrees to receive the document.

    If service is to be effected at a workplace, and the party to be served is not there, the document

    may be delivered to a person who works there if they agree to receive it.

    A document may not be delivered to another person if that person takes part in the proceedings asan opponent of the party to be served.

    Article 136

    A complaint, payment order, extraordinary legal remedy, judgement or decision that may be

    appealed shall be served on a party in person or his/her legal representative or attorney. Other

    documents related to the case shall be served in person if it is expressly determined by this Law or if

    the court finds that the documents to be delivered require special precaution.

    If a party to be served in person is not found where the document should be served, the person

    effecting service must inquire as to when and where he/she could find the person. The person effecting

    service shall also leave a notice with a person specified under Article 135, paragraphs 1 and 2 of this

    Law ordering the party to be served to be at home or workplace on a particular day and time. Should

    after that the person effecting service not find the party, the provisions of Article 135 hereof shall

    apply and it will be considered that service has been effected.

    If the document referred to under paragraph 1 of this Article is to be served on public

    authorities and legal entities, service shall be effected in accordance with the provisions of Article 128

    hereof.

    Article 137

    If a party to be served is absent and a person referred to under Article 135, paragraphs 1 and 2 is

    not able to deliver him/her the document in time, the document shall be returned to the court with a

    note on the whereabouts of the party.

    Refusal of Service

    Article 138

    If a party to be served or a grown-up member of his/her household, or an authorised official or

    employee of a public authority or legal entity refuses service on no legal grounds, the person effecting

    service shall leave the document in the home or office of the party to be served or stick it on the door

    of the home or office. The person effecting service shall write the date, time and reason for refusing

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    service on the note of delivery, as well as where the document was left, whereby service shall be

    considered effected.

    Change of Address

    Article 139

    If a party or his/her legal representative changes address before a second-instance judgementconcluding the proceedings is passed, he/she shall promptly inform the court.

    If they fail to do so, the court shall order that all further services of documents related to the case

    on that party are effected by fixing the documents on the notice-board in the court.

    Service is considered effected upon the expiry of 8 days after the day of putting the document on

    the notice board.

    If the attorney or a person designated to receive documents changes address before a second-

    instance court passes a decision which concludes litigation and fails to notify the court, service shall

    be effected as if the attorney/designated person had not been appointed.

    Ineffective Service

    Article 140

    Where service could not be effected, documents to be served are put on the notice board.

    Service is considered effected upon the expiry of 8 days after the day of putting the document on

    the notice board.

    Person Authorised to Receive Documents

    Article 141

    The court shall invite a party or his/her legal representative who is abroad and does not have an

    attorney in Serbia and Montenegro, to authorise, within a reasonable period of time, a person toreceive documents related to the case in Serbia and Montenegro. If a party or his/her legal

    representative fails to do so, the court shall appoint such person at the expense of the party and soinform the party or his/her legal representative or attorney.

    Article 142

    If there is more than one plaintiff/defendant and they have no joint legal representative or

    attorney, the court may request them to designate, within a set period of time, a representative forthe reception of documents related to the case. Also, the court shall inform the plaintiffs/defendants

    that it will designate one of them as their representative for the reception of documents if they fail to

    do so.

    Agreement on Address for Service

    Article 143

    Parties to the proceedings may agree that service is made to particular address or through

    particular person in the Republic of Serbia. Service is effected if a document was delivered to the

    person specified in their agreement. If it is impossible to effect service in accordance with their

    agreement, the court shall order that service is effected by fixing a document on the notice board.

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    Note of Delivery

    Article 144

    Note of delivery is signed both by the addressee and the person effecting service. The addressee

    shall write the date of delivery on the note of delivery.

    If the addressee is illiterate or unable to sign the note of delivery, the person effecting service shall

    write the addressee's name and date of delivery, with a note why the addressee did not sign.

    If the addressee refuses to sign the note of delivery, the person effecting service shall write so on

    the note, as well as the date of delivery, whereby service is considered effected.

    If service is effected in accordance with Article 136, paragraph 2 of this Law, in addition to proof

    of delivery it must be written on the note of delivery that a written notification preceded the delivery.

    If pursuant to law a document was delivered to a person other than the addressee, the person

    effecting service shall write a note on the relation of the two persons.

    If the date of delivery on the note of delivery is incorrect, the date of delivery is the date when the

    delivery was made.

    Examination and Transcripts of Documents

    Article 145

    Parties may examine, photocopy and transcribe the briefs of the proceedings.

    Other persons who have a justified interest may also examine and transcribe certain briefs. The

    permission to do so is given by the presiding judge if the proceedings are underway, and the president

    of the court or an official designated by him/her if the proceedings have been completed.

    Chapter 12

    COSTS OF THE PROCEEDINGS

    Costs of Litigation

    Article 146

    The costs of litigation comprise costs incurred during or in connection with the proceedings.

    The costs of litigation include remuneration for attorneys and other persons entitled toremuneration in accordance with the law.

    Article 147

    Each party bears the costs incurred in relation to the acts undertaken by them.

    Article 148

    If a party proposes that evidence is presented during a hearing, they shall, upon the request of the

    court, deposit funds which are sufficient to cover the costs incurred by the presentation of such

    evidence.If both parties propose that evidence is presented during a hearing, the court shall request both

    parties to deposit equal funds which are sufficient to cover the costs. If the court ex officio orders

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    presentation of evidence, the court shall order that the party in whose interest it is to present such

    evidence to deposit the necessary funds.

    If the parties agree to attempt mediation or the court directs the parties to mediation, the court shall

    order that both parties deposit equal funds necessary to cover the costs of such procedure.

    The court shall abandon the presentation of evidence if the necessary funds are not deposited

    within a set period of time. In that case, the court shall, taking into account all the circumstances,

    assess the implications of the party's failure to deposit the funds.

    By way of derogation from paragraph 4 of this Article, if the court ex officio orders that evidenceis presented in order to establish facts related to the application of Article 3, paragraph 3 of this Law,

    and the parties fail to deposit sufficient funds, the costs of the presentation of evidence shall be

    covered from the court budget.

    Article 149

    The party who loses litigation shall reimburse the costs of the other party.

    If a party achieves partial success in litigation, the court may, taking into account such

    success, order that each party bears their own costs, or that one party reimburses the other party a

    proportional amount of the costs.

    The court may order that one party reimburse all the costs of the other party, if the other party was

    unsuccessful as regards a comparatively small part of the claim which incurred insignificantcosts.

    Depending on the result of the presentation of evidence, the court shall decide whether the costs

    referred to in Article 148, paragraph 5 of this Law shall be covered by one or both parties or whether

    they will be covered from the court budget.

    A third interested party is entitled to reimbursement of costs from the other party only forthose actions that they undertake instead of the party they joined.

    Article 150

    In deciding which costs are to be reimbursed to a party, the court shall take into account only such

    costs as were necessary to conduct the proceedings. The court decides which costs were necessaryand in what amount, after careful consideration ofall the circumstances.

    If there is a set fee for attorneys or other costs, the costs are calculated based on such fee.

    Article 151

    Regardless of the outcome of litigation, a party shall reimburse the costs of the other party arising

    as a result of a fault by that party or an accident that happened to him/her.

    The court may order that the legal representative or attorney reimburse costs of the other party

    which were incurred through his/her own fault.

    Article 152

    If the defendant did not give ground for the complaint and admitted a claim in the reply to the

    complaint, or at pre-trial hearing, and if there is no pre-trial hearing then

    in trial before entering the debate about the subject matter of litigation, the plaintiff shall reimburse

    the costs of litigation to the defendant.

    Article 153

    A plaintiff who withdraws a complaint shall reimburse the costs of litigation to the defendant,

    unless the withdrawal ensued promptly after the defendant fulfilled the requests of the plaintiff.

    A party who withdraws an appeal shall reimburse the costs incurred by the other party inrelation to the appeal.

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    Article 154

    Each party bears their own costs if the litigation results in court settlement or settlement after

    mediation, unless the parties agree otherwise.

    The costs of litigation include the costs of