Supreme Court of Russia clarified the application of the law on holding bankruptcy trustees accountable

The Supreme Court of Russia clarified the issue of the admissibility of bringing bankruptcy trustees to administrative responsibility in a situation where they violate the procedure for distributing funds received from the sale of the subject of pledge.  The legal position on this matter was consolidated in the ruling of the highest court this summer.

The highest court indicated that the assessment of the situation had already been enshrined in paragraph 14 of the Review of Judicial Practice of the Supreme Court of the Russian Federation No. 3 (2021), according to which bringing bankruptcy trustees to responsibility (civil, administrative) for committing the above actions is possible only for the future.

This is stated in the response of the Supreme Court of Russia to the Chairman of the Council of the National Union of Anti-Crisis Management Professionals.

We are talking about the legal situation within which the debtor's pledged property was sold.

The tax office and the trustee could not agree on the way the process of repayment of the current debt to the government agency would take place. The Tax Inspectorate believed that the amount necessary to pay off the current tax arrears should be allocated until the settlement with creditors - from the proceeds from the sale of the realized pledged property.

The Supreme Court of Russia supported this position, having indicated that otherwise the situation would lead to an imbalance between creditors, since the current tax debt would have to be paid off at the expense of funds from the sale of other property, which is not correct.