SUPREME COURT: THE CONSEQUENCES OF THE DEBTOR'S INACTION EXTEND TO HIS LEGAL SUCCESSOR

Due to the debtor's lack of property, enforcement proceedings were stopped in 2016. After 5 years, the legal successor of the creditor appealed to the court to restore the deadline for submission for execution, issue a duplicate of the writ of execution and compulsory debt collection. The debtor appealed against these claims (case No. 16-KG23-8-K4).

The court of first instance, satisfying the claims of the legal successor, pointed out that there were valid reasons for missing the deadline and the possible loss of the enforcement document by bailiffs, since the court did not have information about the return of the writ of execution to the creditor after the end of the proceedings in 2016. The courts of higher instances found no violations in this decision.

The Supreme Court of the Russian Federation, having considered the case, recalled that when transferring the rights of the creditor, they pass to the extent and on the terms that were in effect at the time of such transfer, and all the procedural actions performed earlier are mandatory for the legal successor to the same extent that they would be mandatory for his legal successor.

Thus, the consequences of the inaction of the legal successor in full extend to the new creditor. In addition, the judicial board noted that the mere fact of the transfer of the right of claim as a result of the conclusion of the contract does not lead to the suspension of the period of submission for execution, and the failure to fulfill any obligations between the parties to such a contract cannot be taken into account by the court as a valid reason when considering the restoration of this period.

Since the court did not establish whose fault the original writ of execution was lost, and the legal successor should have known that enforcement proceedings in this case have not been conducted since 2016, and did not take any action to recover the debt, which means he missed the deadline as a result of his own inaction, satisfaction of the claims declared by the legal successor on the basis of the information provided it is seen by the Armed Forces of the Russian Federation as illegal. The case is being reviewed for a more detailed study of the circumstances.

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