A PROCEDURAL ERROR CAUSED A CANCELLATION OF THREE COURT ORDERS

According to the general rule, gross violations of substantive or procedural law are the reasons for the cancellation of judicial acts. In both cases, the courts may adhere to different points of view, but the final position upon the further appeal will have to be expressed by the Supreme Court of the Russian Federation.

Such a situation arose when considering an application filed by the insolvency officer to request accounting documentation from the liquidator and members of the company, as well as the seals and stamps of the company.

The courts of the first instance and appeal, as well as the district court unanimously took the side of the officer and satisfied the application, despite the objections of the liquidator about his inappropriate notification of the time and place of the court session.

Responding to the appellant's arguments, the court indicated that the transfer of the documentation that the officer requires for through the court is the responsibility of the liquidator, and the consideration of the issue of compulsion to such an action does not require notifying the latter about the court session held on the case.

The district court agreed with the arguments, additionally pointing out that the liquidator had not presented evidence on the transfer of the documentation to the officer.  

The judges of the Supreme Court, considering the complaint, came to a different conclusion, indicating that the proper notification about the time and place of the court session from the liquidator’s side was necessary, and therefore the courts made a gross procedural error and the decisions they made are to be cancelled (determination No. 309-ES20- 2880 dated July 20, 2020).