THE DISTRICT COURT FOUND NO POSSIBILITY TO CHALLENGE THE INSOLVENCY OFFICER’S INACTION

THE DISTRICT COURT FOUND NO POSSIBILITY TO CHALLENGE THE INSOLVENCY OFFICER’S INACTION

THE DISTRICT COURT FOUND NO POSSIBILITY TO CHALLENGE THE INSOLVENCY OFFICER’S INACTION
Some time ago, The Moscow District Commercial Court had to consider the issue of the procedural possibilities for appealing against the inaction of an insolvency officer in a bankruptcy process.

Such a statement was made by the former head of the debtor, who was also brought to subsidiary liability by this officer.

The courts of the first and the appeal instance considered the application of the former head, but refused to satisfy the requirements.  At the same time, the insolvency officer stated the need to terminate the proceedings, since the former head of the debtor did not have a procedural right to file for it.  However, the position of the insolvency officer was rejected by the courts as well.
After that, the judicial decisions were challenged in the district court, which listened to the arguments of the manager and terminated the application. 

The arguments of the Moscow District Commercial Court are as follows: although the former head of the debtor has the right to participate in the process of bringing him to subsidiary liability with the ensuing opportunities to present his arguments and additional evidence, he is not fully involved in the bankruptcy case.  The law defines the circle of entities that are participants in the bankruptcy case, and there is no former head of debtor among them (resolution of June 23, 2020 in case No. A40-140479 / 14).

08.07.2020