Termination of the Supply Agreement with Recovery of the Debt, Damages and Penalty
To the Specialized Interdistrict Economic Court of Turkestan Region
Plaintiff: Individual Entrepreneur “FOV”
Individual Entrepreneur “FOV” filed a claim for termination of the supply agreement and recovery of the amount.
On June 25, 2025, Supply Agreement No. 67 (hereinafter — the Agreement) was concluded between IE “Z” (Supplier) and IE “FOV” (Buyer). According to the Agreement, the Supplier undertook to supply the goods, and the Buyer undertook to pay for the goods.
On June 27, 2025, in accordance with Appendix No. 1 “Specification”, the Plaintiff made one hundred percent payment for the goods in the amount of KZT 10,112,255. The delivery period for the goods was 5 business days from the date of payment. However, the Defendant failed to deliver the goods within the established period and to date, thereby grossly violating the terms of the Agreement and its obligations to the Plaintiff.
Thus, IE “Z” violated the terms of the Agreement. As a result, the Plaintiff was substantially deprived of what it was entitled to expect when entering into the Agreement.
In this regard, the Plaintiff considers that the Supplier acted in bad faith with regard to the obligations assumed under the Agreement and misled it concerning its competence.
According to Clause 6.1 of the Agreement, the Buyer has the right to claim a penalty in the amount of 1% of the value of the goods delivered late. Thus, as of June 11, 2026, the Defendant is obliged to pay the Plaintiff a penalty in the amount of KZT 101,122.
According to Clause 6.2 of the Agreement, in the event of non-delivery of the goods, the Supplier is obliged to refund the funds and also pay a penalty in the amount of 1% of the total amount of the application. Thus, as of June 11, 2026, the Defendant is obliged to pay the Plaintiff a penalty in the amount of KZT 101,122.
According to Article 386 of the Civil Code of the Republic of Kazakhstan (hereinafter — the Civil Code of the RK), the Agreement enters into force and becomes binding upon the parties from the moment of its conclusion.
According to Article 272 of the Civil Code of the RK — “An obligation must be performed properly in accordance with the terms of the obligation and the requirements of legislation, and in the absence of such conditions and requirements — in accordance with business customs or other usually applicable requirements.”
According to Article 277 of the Civil Code of the RK — “If an obligation provides for or permits the determination of the day of its performance or the period of time within which it must be performed, the obligation shall be performed on that day or, respectively, at any time within such period.”
According to Article 401 of the Civil Code of the RK — “Amendment and termination of an agreement shall be possible by agreement of the parties, unless otherwise provided by this Code, other legislative acts or the agreement.”
According to Part 5 of Article 403 of the Civil Code of the RK — “If the basis for termination or amendment of an agreement was a material breach of the agreement by one of the parties, the other party shall have the right to demand compensation for losses caused by the termination or amendment.”
According to Part 1 of Article 9 of the Civil Code of the RK, protection of civil rights shall be carried out by a court or arbitration by means of: restoration of the situation that existed prior to the violation of the right; recovery of losses and penalties.
According to Part 4 of Article 9 of the Civil Code of the RK, losses shall mean expenses incurred or to be incurred by the person whose right has been violated.
Due to the Defendant's failure to perform the Agreement, the Plaintiff incurred losses in the amount of KZT 6,016,000, which is confirmed by Agreement No. 49 dated August 21, 2025 and Agreement No. 50 dated September 25, 2025 for the supply of goods similar to those specified in the Agreement, concluded between “Sever Interkabel” LLP and IE FOV, as well as by fiscal receipts for the specified amount. Namely, IE FOV purchased from “Sever Interkabel” LLP “SIP-3 1x70” in the amount of KZT 5,586,000 and AVBShV 4x25 in the amount of KZT 430,000, which are specified in Appendix No. 1 to the Agreement — Specification.
In addition to the above monetary claims, the expenses for legal assistance in the amount of KZT 1,000,000 shall be recovered in favor of the Plaintiff.
According to Clause 8.3 of the Agreement, the dispute shall be considered by the Arbitration Court at the place of location of the Defendant. However, this condition cannot serve as a basis for returning the statement of claim or leaving it without consideration.
According to the current legislation, arbitration courts do not exist in the territory of the Republic of Kazakhstan.
Moreover, according to Paragraph 11 of Regulatory Resolution No. 3 of the Supreme Court of the Republic of Kazakhstan dated November 2, 2023, “On Certain Issues of Application of Arbitration Legislation by Courts”, the provisions of the Civil Code on agreements shall apply to an arbitration agreement. The terms of an arbitration agreement shall be determined by agreement of the parties.
According to Paragraph 1 of Article 393 of the Civil Code of the RK, an agreement shall be deemed concluded when an agreement has been reached between the parties, in the required form where applicable, on all essential terms thereof. The subject matter of an arbitration agreement is the obligation of the parties to submit a particular dispute for consideration by arbitration; therefore, the arbitration agreement must contain information allowing the arbitration to which the parties have decided to submit an already existing or potential dispute to be individualized.
In the absence of such information in the arbitration agreement, as well as where it is impossible to apply supplementary provisions (in particular, the provisions of the European Convention on International Commercial Arbitration), such arbitration agreement shall be deemed unconcluded.
Since Agreement No. 67 dated June 25, 2025 does not contain an indication of a specific operating permanent arbitration institution (name, BIN, rules) that would allow it to be individualized, the said arbitration agreement is unconcluded. Consequently, the dispute shall be considered by the court at the place of location of the Defendant, namely by the Specialized Interdistrict Economic Court of Turkestan Region.
Calculation of the amounts subject to recovery:
Principal debt: refund of the payment made for the undelivered goods — KZT 10,112,255.
Penalty (Clause 6.1 of the Agreement): for late delivery of the goods as of May 4, 2026 — KZT 101,122.
Penalty (Clause 6.2 of the Agreement): for non-performance of obligations in the amount of 1% of the application amount — KZT 101,122.
Losses (Part 4 of Article 9 of the Civil Code of the RK): Due to the failure of delivery, the Plaintiff was forced to purchase similar goods (“SIP-3 1x70” and “AVBShV 4x25”) from “SI” LLP under Agreements No. 49 dated August 21, 2025 and No. 50 dated September 25, 2025. The amount of losses incurred is KZT 6,016,000 (confirmed by fiscal receipts).
Expenses for legal assistance: The cost of the representative's services amounted to KZT 1,000,000.
The Plaintiff complied with the pre-trial procedure for dispute settlement: on May 18, 2026, a Proposal for Pre-Trial Settlement of the Dispute was sent to the Defendant, which was left unsatisfied. The fact of delivery of the Proposal for Pre-Trial Settlement of the Dispute is confirmed by a screenshot of the website of “Kazpost” JSC, link: https://post.kz/services/postal/UN052314605KZ
Based on the foregoing, I request:
To terminate Supply Agreement No. 67 dated June 25, 2025, concluded between IE “FOV” and IE “Z”.
To recover from IE “Z” in favor of IE “FOV” the amount of money paid for the goods in the amount of KZT 10,112,255.
To recover from IE “Z” in favor of IE “FOV” a penalty in the amount of KZT 101,122.
To recover from IE “Z” in favor of IE “FOV” a penalty in the amount of KZT 101,122.
To recover from IE “Z” in favor of IE “FOV” the amount of damages caused in the amount of KZT 6,016,000.
To recover from IE “Z” in favor of IE “FOV” expenses for legal assistance in the amount of KZT 1,000,000, as well as expenses for payment of the state duty in the amount of KZT 175,530.
On July 28, 2026, Case No. 5165-26-00-2/2043, the Specialized Interdistrict Economic Court of Turkestan Region, composed of Presiding Judge Rustem B.M., considered, under the simplified procedure, a civil case on the claim of:
PLAINTIFF: Individual Entrepreneur FOV
DEFENDANT: Individual Entrepreneur (hereinafter — IE) “Z” Z T.
PLAINTIFF'S CLAIMS:
- for termination of the supply agreement.
- for recovery of the amount of debt.
- for recovery of the amount of losses and penalty.
Guided by Articles 223-226, 267-4 of the Civil Procedure Code, the court RESOLVED:
To satisfy the claim of IE FOV.
To terminate Supply Agreement No. 67 dated June 25, 2025, concluded between IE FOV and IE “Z” Z Z.T.
To recover from IE “Z” Z Z.T. in favor of IE F.O.V. the amount of money paid for the goods in the amount of KZT 10,112,255 (ten million one hundred twelve thousand two hundred fifty-five) tenge.
To recover from IE “Z” Z Z.T. in favor of IE F.O.V. a penalty in the amount of KZT 101,122 (one hundred one thousand one hundred twenty-two) tenge.
To recover from IE “Z” Z Z.T. in favor of IE F.O.V. a penalty in the amount of KZT 101,122 (one hundred one thousand one hundred twenty-two) tenge.
To recover from IE “Z” Z Z.T. in favor of IE FOV the amount of damages caused in the amount of KZT 6,016,000 tenge.
To recover from IE “Z” Z Z.T. in favor of IE FOV expenses for legal assistance in the amount of KZT 1,000,000 (one million) tenge, as well as expenses for payment of the state duty in the amount of KZT 175,530 (one hundred seventy-five thousand five hundred thirty) tenge.
To recover from “A.-B” Limited Liability Partnership in favor of “A.C.G. Insurance Company” Joint Stock Company the amount of KZT 12,600,000 (twelve million six hundred thousand) tenge and the state duty in the amount of KZT 378,000 (three hundred seventy-eight thousand) tenge.
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