THE SUPREME COURT DECLARES A REPAYMENT OF OVERDUE LOAN INVALID

THE SUPREME COURT DECLARES A REPAYMENT OF OVERDUE LOAN INVALID

THE SUPREME COURT DECLARES A REPAYMENT OF OVERDUE LOAN INVALID

In the framework of consideration of a cassation appeal against decisions of lower courts, the Supreme Court of the Russian Federation reminded colleagues of the need for a unified legal approach when resolving similar disputes and also outlined the criteria for recognizing a transaction as invalid in a situation of overdue fulfillment of a loan obligation.



The situation in question was initiated by the manager of the debtor, who tried to invalidate the transfer of funds in favor of the bank for the execution of the loan agreement through the court.

The manager was confused by the fact that transaction was made with delay, which, in his opinion, could not fall under the criterion of the debtor's usual business activities.

The opinions of the courts were different: the court of second instance upheld the application, while the court of the first instance and the regional court considered the fact that the interests of one creditor had been preferable to others to be unproved and rejected the claim.

The Supreme Court, when considering the complaint, indicated that the execution of a loan agreement with a significant delay cannot be recognized as normal economic activity. In addition, the courts have already considered similar claims to contest the debtor’s loan payments. However, for an unclear reason, the district court took the opposite position, applying the consequences of the invalidity of transactions.

The ambiguity of the legal approach of the district court, as well as the mistakes made by the lower instances, has led to the cancellation of the court decisions and the referral of the case for a new trial (determination No. 305-ES19-23861 (3) of December 10, 2020).


18.01.2021