INVALIDITY WITHOUT RETROACTIVE INTEREST

INVALIDITY WITHOUT RETROACTIVE INTEREST

INVALIDITY WITHOUT RETROACTIVE INTEREST
The financial manager appealed to the court with a demand to invalidate the land purchase agreement between the company and the citizen (case no. A40-40075/23).

The courts of two instances partially satisfied the application, since the citizen is affiliated with the debtor. The circumstances of the affiliation of the debtor and the citizen, as well as the fact that the citizen was the alleged owner of the debtor's assets, were established by a judicial act in another case. The citizen's lack of financial ability to make expensive purchases of real estate is also confirmed by a judicial act in another case. 

As of the date of the transactions, the debtor has already incurred obligations to creditors that have not been fulfilled to date. A transaction made for the purpose of causing harm to the debtor's creditors is subject to invalidation. 

In refusing to satisfy the application regarding the invalidation of the transaction, which served as the basis for the registration of ownership of a residential building, the courts proceeded from the fact that the financial manager had chosen an inappropriate way to protect the right. 

The cassation court amended the judicial acts in part, pointing out that the limitation period for collecting interest for using other people's funds was not missed only three years before the date of the financial manager's application to challenge the transaction. Thus, the interest accrual period should be adjusted.

 

Photo: Freepik

21.10.2025