Supreme Court of Russia recalled that bankruptcy trustee may be suspended due to mistakes in another case

The highest court considered the case at the request of the Federal Tax Service, which the lower courts refused to satisfy: the tax authorities insisted on the removal of a bankruptcy trustee from his duties in the debtor's bankruptcy case.

When considering the application, the tax authority indicated that the trustee could no longer hold office and must have left the position because he had been removed from another insolvency procedure.  The reason for this decision was the inadequate performance of his duties.

Having rejected the claims, the lower courts indicated that the fact that the trustee was removed from participation in another case did not affect the need to do the same in the present case.

In addition, the applicant has not proven the fact of improper performance of duties in the conduct of this case.

However, the Supreme Court of Russia came to a different conclusion on this issue.  The fact is that in both cases, when considering the bankruptcy claim of the trustee, it was a question of a strategic enterprise debtor.  In such a situation, the economic board recalled that the legislation on insolvency provides for the possibility of establishing additional requirements for bankruptcy trustees and they exist.  In particular, the Decree of the Government of the Russian Federation No. 586 indeed contains a rule according to which a trustee cannot hold the position of an anti-crisis manager of a strategic enterprise if he was removed from duties in another case due to improper performance of his duties (decision of September 30, 2021 in the case № 308-ES21-8991).