Supreme Court of Russia determined the time period for consideration of claims on invalid transaction

The Economic Board considered the case on the inclusion of the debt of the bankrupt company to the buyer of a car into the register of creditors’ claims.  The lower courts did not see any problems and satisfied the claim. However, the representatives of the Highest court expressed their disagreement with such a state of affairs.

The question concerned the contract for the sale and purchase of a car, which was signed during a period of suspicion on conditions unfavorable for the debtor. The agreement was declared invalid by the court, and the parties were obliged to return what they had received under the transaction to each other.

The failed buyer fulfilled his obligations, the enforcement proceedings against him were terminated, after which he applied to the court with a demand to include the debt to him in the register of creditors’ claims.

The courts of three instances consistently satisfied the claim, but such a decision turned out to be erroneous.

The Supreme Court of Russia recalled that a claim on a recognized transaction is considered to be declared on time if it has been failed within two months after the entry of a judicial act declaring the transaction invalid into force, which was not done. Consequently, the applicant was late, and his debt could be paid only after all financial claims of the registered creditors are satisfied (decision № 305-ES18-19088 (5) of October 20, 2021 in case № A40-26474 / 2016).