NOT EVERY HOME WILL BE DEPRIVED OF EXECUTIVE IMMUNITY

NOT EVERY HOME WILL BE DEPRIVED OF EXECUTIVE IMMUNITY

NOT EVERY HOME WILL BE DEPRIVED OF EXECUTIVE IMMUNITY
The manager appealed to the court with an application to challenge the apartment donation agreement concluded between the debtor's ex-wife and his son (case no. A19-15139/20).

Refusing to satisfy the application, the court of first instance proceeded from the fact that a transaction aimed at alienating residential premises by the debtor is not subject to invalidation if, at the time of consideration of the dispute, the debtor and his family members continue to live together in this room and when the premises are returned to the bankruptcy estate, it will be protected by executive immunity.

The appeal satisfied the application, guided by the fact that in this case there are grounds for limiting executive immunity and the conditions for providing the debtor and his son with substitute housing.

The cassation upheld the ruling of the first instance, noting that the area of the apartment, obviously, cannot testify to the luxury of housing and does not exceed the norm calculated by the court of appeal for the debtor and his dependent son to provide residential premises on terms of social employment in the debtor's region of residence.

The Court of Appeal did not provide any justification for the fact that the cost of an apartment, taking into account its qualitative characteristics (for example, features of the layout, condition, location, etc.) significantly exceeds the market value of an apartment of the same area.

Evidence that the situation with the only room suitable for permanent residence was created artificially by the debtor or his family members, with abuse of the right, was not presented in the case, the parties to the dispute did not refer to these circumstances.

In addition, even if we admit that the area of the disputed residential premises has signs of excess, the district court considers the prospects of filling the bankruptcy estate after the purchase of replacement housing to be extremely low.

02.07.2024