Myanmar Doing Business

Enforcing Contracts

At a Glance : Enforcing Contracts

2019 Ranking: 188

2019 Distance to Frontier Score*: 24.53 (unchanged from DB2018)

Regional Average (East Asia Pacific): 52.75

More information on Myanmar’s performance in Enforcing Contracts - Click Here

* The distance to frontier (DTF) measure shows the distance of each economy to the “fron-tier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 rep-resents the frontier. The ease of doing business ranking ranges from 1 to 190. (Source; World Bank)

What it measures

Time and cost to resolve a commercial dispute and the quality of judicial processes

 

Why does it matter?

Studies link efficient contract enforcement with:

  • Increase in trade
  • Economic development and sustained growth
  • Improved access to credit

 

Enforcing Contracts in Myanmar

Standardized Case  
Claim value MMK 6,283,958
Court Name Latha Township Court
City Cover Yangon
   
  Indicator
Time (days) 1160
Filing and Service 65
Trial and judgment 815
Enforcement of judgment 280
Cost (% of claim value) 51.5
Attorney fees 45
Court fees 2.5
Enforcement fees 2
Quality of judicial processes index (0-18) 3.0
Court structure and proceedings (-1-5) 1.5
Case management (0-6) 0.0
Court automation (0-4) 0.0
Alternative dispute resolution (0-3) 1.5

 

Measure of Quality

  Answer Score, as recorded by the Doing Business 2019 Report
Quality of judicial processes index (0-18)  

3.0

Court structure and proceedings (-1-5)  

1.5

1. Is there a court or division of a court dedicated solely to hearing commercial cases? No

0.0

2. Small Claims Court  

0.0

2.a. Is there a small claims court or a fast-track procedure for small claims?

No  

2.b. If yes, is self-representation allowed?

n/a  
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, But manual 0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
Case management (0-6)   0.0
1. Time standards    

1.a. Are there laws setting overall time standards for key court events in a civil case?

No  

1.b. If yes, are the time standards set for at least three court events?

n/a  

1.c. Are these time standards respected in more than 50% of cases?

n/a  
2. Adjournments   0.0

2.a. Does the law regulate the maximum number of adjournments that can be granted?

No  

2.b. Are adjournments limited to unforeseen and exceptional circumstances?

No  

2.c. If rules on adjournments exist, are they respected in more than 50% of cases?

n/a  
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? Yes 0.0 (Not scored in the Doing Business 2019 report, as the change came after the cut off date)
4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0
5. Are there any electronic case management tools in place within the competent court for use by judges? No 0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0
Court automation (0-4)   0.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0
3. Can court fees be paid electronically within the competent court? No 0.0
4. Publication of judgments   0.0

4.a Are judgments rendered in commercial cases at all levels made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

No  

4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

No  
Alternative dispute resolution (0-3)   1.5
1. Arbitration   1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects?

Yes  

1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—that cannot be submitted to arbitration?

No  

1.c. Are valid arbitration clauses or agreements usually enforced by the courts?

Yes  
2. Mediation/Conciliation   0.0

2.a. Is voluntary mediation or conciliation available?

No  

2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects?

n/a  

2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or conciliation is successful, a refund of court filing fees, income tax credits or the like)?

n/a  

 

What has improved

Case Management System instituted as the first phase of a " Pilot Courts" program in one District and two  Township pilot courts in 2015 and in 12 Township Courts and 14 District Courts in 2018.
Statistics are now being collected on time to disposition, clearance rates, age of pending cases, and single case progress for every court in Yangon. Details here 
http://www.unionsupremecourt.gov.mm/?q=content/13921
http://www.unionsupremecourt.gov.mm/sites/default/files/supreme/yangon_clearance_rate_english.pdf

 

Action Plan

Action Item Timeline Status
Keep collecting detailed data on courts in Yangon and publish latest data online Short Term

Data including (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report for courts in Yangon published here

http://www.unionsupremecourt.gov.mm/?q=content/13921
http://www.unionsupremecourt.gov.mm/sites/default/files/supreme/yangon_clearance_rate_english.pdf

Consider introducing court automation features Medium Term Not introduced yet
Consider introducing stricter rules on the number of adjournments and continuances that can be granted Medium Term Case Management Procedures, setting time standards and adjournment policy, are issued in 2018 August.
http://www.unionsupremecourt.gov.mm/sites/default/files/supreme/case_management_procedure_eng.pdf
Consider introducing pretrial conference Medium Term Implemented in selected 26 courts in 2018 and will roll out in Yangon Western District Court and all township courts in Yangon East and Western district in 2019.
Review the existing case management system and consider developing an electronic case management system for judges and lawyers Medium Term Not introduced yet
Publish judgments rendered in commercial cases Long Term

Ruling Book is yearly published and is available on USC website. The 2018 judgements in commercial cases of first instance courts, appeallate courts and the Supreme Court of the Union are available in USC website.

http://www.unionsupremecourt.gov.mm/?q=content/13872

Adopt a legal regime for commercial mediation as an additional ADR mechanism  Long Term The legal regime for commercial mediation is ongoing process by private sector.
Establish an alternative dispute resolution centre (an international arbitration centre) Long Term The establishment is preparing by private sector
Consider creating a specialized commercial court/bench for handling commercial disputes, and start training judges Long Term The Commercial Law Training for Judges had started since 2016. The case Study Book on Business-Related Laws for judges is published on March 25th  , 2019. The evaluation on the practical approaches and models for specialized commercial court/bench will be started in 2019.
Consider reviewing the Civil Procedures Code Long Term Considering to review the Civil Procedure Code
Consider creating a small claims court Long Term Considering to draft the small claim procedures

 

Lead Person

Daw Tin Nwe Soe

The Enforcing Contracts Indicator support Group is headed by the Director General of the Union Supreme Court. 

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