Changes in the value of property and the consequences of invalid transactions in bankruptcy proceedings

Changes in the value of property and the consequences of invalid transactions in bankruptcy proceedings

Changes in the value of property and the consequences of invalid transactions in bankruptcy proceedings
The manager appealed to the court with a demand to recover unjustified enrichment from the defendant (case no. A60-55372/22).

In granting the application, the courts of the two instances took into account the change in the market value of the property at the time of the court ruling on the invalidation of the transaction. Thus, the courts concluded that there were grounds for collecting unjustified enrichment from the defendant.

The cassation refused to satisfy the application, since the defendant was the nominal holder of the debtor's assets and did not actually own the disputed property. The amount of damage caused was previously determined by the courts, taking into account the value of the property at the time of its alienation to a bona fide acquirer. The actual ownership and use of the property was carried out by the debtor himself, which excludes the possibility of involving the defendant in the obligation to compensate for losses caused by changes in the value of the property.

Additionally, it is noted that the financial manager has already realized the right to compensation through the collection of interest for the use of other people's funds. Thus, the defendant cannot be charged with an additional obligation to reimburse the allegedly saved property at the expense of the debtor.


Photo: Freepik

18.08.2025