Supreme Court Of Russia resolved the issue of challenging the settlement agreement in bankruptcy

Supreme Court Of Russia resolved the issue of challenging the settlement agreement in bankruptcy

Supreme Court Of Russia resolved the issue of challenging the settlement agreement in bankruptcy
The case was referred to the highest court on the complaint of a bankruptcy trustee, who was not satisfied with the ruling issued by the district court.  By this ruling, the board canceled settlement agreement concluded in the bankruptcy procedure and indicated that it could violate the rights of a third party.

The initiator of challenging the deal between the debtor and creditors was an individual who allegedly acquired a land plot from a bankrupt company more than ten years ago.  Subsequently, the actions of the Russian State Register, which registered the deal, were declared illegal, since the department did not take into account that there was also a building on the ground, the fate of which no one had resolved.
After a while, the owner of the site and real estate was declared bankrupt, and his bankruptcy trustee applied to court with a claim for the approval of the settlement agreement.
According to the terms of the deal, the rights to real estate, including the building, were to be transferred to another individual after the latter paid off the payment arrears.  At that moment the previous buyer entered the dispute, attempting to cancel the settlement agreement.

However, the Supreme Court of the Russian Federation pointed out the fallacy of the arguments of colleagues from the district court, noting that by recognizing the actions of the Russian State Register as illegal, the court actually designated the nullity of the deal for the alienation of land without a building located on it. According to this reason, the rights of a third party who once tried to buy a plot from a debtor could not be violated by the conclusion of a settlement agreement in bankruptcy (decision No. 306-ES16-9556 (6) dated February 14, 2022).



18.02.2022