The year 1931 was marked in Soviet economic legislation by a somersault and fundamental change of line. On March fourth of that year the Central Executive Committee and the Council of People's Commissars of the Union decreed the abolition of government agencies called “Arbitration Commissions” (Boards). This was done in order to foster the “strengthening of the unification of the judicial system” as well as “to develop economic discipline and to raise the responsibility of the economic units for their work.” Cases which had come under the jurisdiction of these boards were now placed under that of the civil courts
But on May third of the same year the Government reversed its policy in this respect, and decreed the re-creation of Government Arbitration in order to resolve all disputes arising between public, industrial, and commercial enterprises “with the aim of strengthening the discipline of contracts and plans as well as the settling of accounts among these enterprises.” This decree provides that the Arbitration Boards shall have jurisdiction over all disputes arising from contracts and deals among state-owned enterprises.