IN ORDER TO ATTRACT A SUBSIDIARY, IT IS NOT NECESSARY TO PROVE THAT THE TRANSACTIONS LED TO BANKRUPTCY

It is not necessary to prove the fact that transactions have caused insolvency in order to be held vicariously liable. This conclusion was reached by the Arbitration Court of the Moscow District based on the results of the consideration of the cassation appeal in the case no. A40-227440/20.

The debtor's manager and the creditor filed applications for bringing the debtor's manager and participant to subsidiary liability on the grounds of non-transfer of documents and making unprofitable transactions.

The courts refused to satisfy the applications, pointing out that the applicants had not proved a causal relationship between the commission of disputed transactions and the appearance of signs of the debtor's insolvency.

The cassation corrected the lower instances, noting that it was sufficient for the applicant to prove the dishonesty of subsidiary defendants in making unprofitable transactions, after which the court should independently establish the presence/absence of a causal link between the commission of such transactions and the onset of bankruptcy, and the burden of refuting the applicant's arguments falls on the defendant.

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