THE BOUNDARY BETWEEN THE GIFT AND THE COMPETITIVE MASS

THE BOUNDARY BETWEEN THE GIFT AND THE COMPETITIVE MASS

THE BOUNDARY BETWEEN THE GIFT AND THE COMPETITIVE MASS
The financial manager appealed to the court with a demand to invalidate the donation transaction (case no. A56-118997/22).

In rejecting the application, the court of first instance proceeded from the fact that the contested transaction did not and could not harm the debtor and his creditors, since it was made with property that had never been owned by the debtor, and therefore could not be returned to him. Cost compensation is also not possible. Even if the contested transaction is declared invalid, the legal consequences are subject to application in favor of the donor citizen, who has already died at the date of the dispute and has no heirs, but not in favor of the debtor. 

The appeal terminated the proceedings on the application, since the deceased citizen is the party to the transaction that executed it in the form of the transfer of the disputed property. An isolated dispute cannot be considered in the absence of the defendant, the party to the disputed transaction, in respect of which the consequences of its invalidity are subject to application. There is no possibility of applying the consequences of the invalidity of the transaction in the form of the return of property to the bankruptcy estate, and the disputed legal relationship does not allow for succession.

The cassation upheld the ruling of the first instance, pointing out that the claim was brought against two defendants, including the gifted citizen, in the form of collecting money from her in favor of the bankruptcy estate, and not in favor of the donor citizen. 

In the opinion of the Court of Cassation, the court of first instance correctly established that the disputed property never belonged to the debtor, the case materials do not contain evidence indicating that the contested transaction covers a contract for the donation of real estate directly to the debtor, given that the disputed objects were donated by the donor citizen to the donee before the marriage was registered. with the debtor. 

It was also noted that the disputed property is the only habitable dwelling of the gifted citizen and her child, respectively, it is subject to executive immunity. In addition, the court of first instance reasonably took into account the absence of the debtor's signs of insolvency and insufficient property on the date of the disputed transaction, which excludes the debtor's goal of avoiding foreclosure on his assets.

    

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11.11.2025