INDEXING IS NOT ALWAYS POSSIBLE

The entrepreneur (the winner of the auction for the sale of receivables) applied to the court for the indexation of the awarded funds for the period of non-fulfillment of the court ruling on challenging the transaction (case no. A56-83170/20).

The courts of two instances granted the entrepreneur's application, recognizing the latter's claim as justified. The entrepreneur pointed out the non-fulfillment of the court's ruling and the non-repayment of the debt. The indexation amount was calculated for the period of non-fulfillment of the definition.

The cassation sent the dispute for reconsideration, pointing out that the indexation of the sums of money awarded by the court is permissible only after the full or partial execution of the judicial act. The satisfaction of the indexation application before the execution of the court decision in whole or in part contradicts the nature of this institution, aimed at compensating for financial losses due to late execution of the decision.

In addition, the court of cassation noted that the courts of the first and appellate instances did not take into account the fact of non-fulfillment of the court's ruling at the time of the claimant's application for indexation. Thus, the conclusions of the lower courts on the existence of grounds for indexing the entire amount awarded were found to be unlawful.

It was also pointed out that if there is information about the partial execution of a judicial act, then only the amount paid, and not the entire amount awarded, is subject to indexation.