CANCELLATION OF THE GROUNDS OF BANKRUPTCY

The debtor applied to the court for a review of the ruling on the introduction of debt restructuring based on new circumstances (case no. A40- 71022/23).

The courts of two instances refused to satisfy the application, since the cancellation of the judicial act on the basis of which the bankruptcy procedure was introduced is not in itself an unconditional basis for reviewing the case, since the register of creditors' claims includes the claims of other creditors whose debts exceed the threshold established by law. At the same time, the courts took into account that the court's ruling on the inclusion of one of the creditors' claims in the register had already been canceled and his claims denied. 

In sending the dispute for reconsideration, the cassation pointed out that the cancellation of the judicial act, which served as the basis for the introduction of bankruptcy proceedings, is a significant circumstance requiring additional research. It was noted that the courts had not investigated the actual existence of signs of the debtor's insolvency at the time of the initiation of bankruptcy proceedings. In addition, the courts did not take into account the arguments that the only reason for the introduction of bankruptcy proceedings was the annulled court decision. 

The court further noted that if the cancelled decision was the only basis for the commencement of bankruptcy proceedings and there were no other signs of insolvency, then the bankruptcy procedure could be terminated. It was also emphasized that the purpose of the bankruptcy procedure is to restore the debtor's solvency or fairly satisfy creditors' claims, and not to create an artificial bankruptcy situation based on a revoked judicial act.


Photo: Freepik