The Hague  - The International Court of Justice (ICJ) in The Hague ruled on Tuesday that it has jurisdiction to hear a claim by Croatia that Serbia committed genocide against its population in the 1991-95 war.

The ICJ said the decision was final, binding and without appeal and had been made by 10 votes to seven.

The court rejected all Serbia's claims that the ICJ was not competent to hear the case, which Croatia filed in 1999 against the former-Yugoslav state consisting of Serbia and Montenegro, and at that time still run by strongman Slobodan Milosevic.

Serbia had argued that since it was technically not a member of the United Nations in 1999, it was therefore not bound by the ICJ's statute.

But the ICJ on Tuesday said it held Serbia, legal successor to the Republic of Yugoslavia - known under the name Republic of Serbia and Montenegro - as the "sole respondent in the present proceedings."

When Montenegro declared its independence in 2006, Serbia accepted continuity between the State of Serbia and Montenegro and the Republic of Serbia, effectively becoming the legal successor to the Republic of Yugoslavia, the ICJ noted.

The court also rejected Serbia's claim it was not party to the United Nations convention on genocide, which Croatia invoked in its case against Serbia. As successor to the former Yugoslavia, Serbia was bound to the convention, the ICJ ruled.

The ICJ also rejected Serbian claims that it would not have jurisdiction to hear Croatia's request that Serbian war crimes suspects should be brought before the court, adding it will "examine the claims of Croatia on the merits."

Speaking on Croatian state television HTV later on Tuesday, President Stjepan Mesic said he was expecting such a ruling and that he hoped Croatia would win the trial.

"We won in round one. Now we have round two and that is to prove genocide in Croatia," Minister of Justice Ivan Simonovic told daily 24sata.

"I'm positive that we have strong arguments."

Serbian officials announced they would consider filing a counter suit against Croatia.

"We are considering our defence and the possibility of settlement or even a contra-charge," Serbian Justice Minister Snezana Malovic told journalists in Belgrade.

"I'm certain that the ultimate decision will be positive for Serbia," she said. Serbia and Croatia should work on making peace with one another as it is one of the main conditions for European integration of the region, Malovic added.

Zagreb claims Belgrade fomented and supported a Serb insurgency following Croatia's declaration of independence from Yugoslavia in 1991.

Croatia says 20,000 people died and 55,000 were wounded during the three years of war which ended in the defeat of the Serbs.

Zagreb is demanding compensation for the damages it claims Serbia is responsible for.

Last year, the ICJ ambiguously cleared Belgrade of being responsible for a genocide of Muslims in Bosnia in a case filed by Sarajevo, but also chided Serbia for not doing enough to stop bloodshed.

The ICJ, operative since 1946, is the primary judicial organ of the United Nations.

Apart from settling legal disputes submitted to by member states, the ICJ also gives advisory opinions on legal questions.

The UN recently accepted a petition by Belgrade to request an opinion from the ICJ on the legality of Kosovo's secession from Serbia. (dpa)