THE SUPREME COURT AGAIN EXPANDS THE LIMITS OF EXECUTIVE IMMUNITY

At the end of October, the Supreme Court published a ruling on the results of the consideration of the cassation appeal in the bankruptcy case (No. A40-208133/19). In it, the supreme judicial instance presented a position regarding executive immunity applied to a citizen's only home.

The essence of the dispute was that in the insolvency case of an individual, the debtor's apartment was sold at auction, after which the donation of a land plot and a house was invalidated.

The debtor of the specified real estate was gratuitously alienated in favor of the father, in view of which the courts established the fact of dishonesty of both, since the transaction was made on the eve of bankruptcy and between affiliated persons.

After the return of the property to the bankruptcy estate, auctions were held for its sale, after which a purchase and sale agreement was concluded with the winner of the auction. The registration of the transfer of ownership was suspended due to the court's consideration of the debtor's petition for the exclusion of immovable property from the bankruptcy estate, since it was the only housing.

The courts refused to satisfy the application, referring to the established fact of bad faith in the alienation of real estate under a recognized invalid transaction.

The Supreme Court of the Russian Federation disagreed with the lower authorities, who noted that in this case the fact of bad faith should be taken into account only when challenging the transaction, but not in the context of excluding the only housing from the bankruptcy estate.

In fact, the Supreme Court has revised its earlier position, which it has consistently held for a long time, giving reason to understand the executive immunity of a single dwelling as absolute.

Photo: Freepik