The Supreme Court of Russia canceled the conclusion of amicable agreement due to the negligence of judges

The Economic Board of the Supreme Court of Russia considered the case on the complaint of the creditor (bank), which challenged the conclusion of an amicable agreement in the proceedings related to the insolvency case. The lower courts did not see any violations of the applicant's rights, but the Supreme Court sided with the bank.

The dispute arose against the background of the bankruptcy of an individual. The debtor citizen was a member of the company with 100% of the shares, which was sold by him to a third party. The bankruptcy trustee challenged the deal and succeeded in declaring it invalid, but before the entry of the judicial act into the force, the buyer of the share sold it to another individual.

The trustee challenged this agreement as well, but as part of the consideration of the case, the new buyer, seller and a bankruptcy trustee came to a consensus and decided to secure this by an amicable agreement.

However, this state of affairs did not suit the bank. The applicant challenged the terms of an amicable agreement, but failed in the lower courts.

The bank indicated that the execution of an amicable agreement would not properly fill the bankruptcy estate, since the value of the sold share indicated in it was many times lower than the real price of the asset. In addition, it was not clear whether the parties have complied with the terms of the agreement or not.

Considering these circumstances and the fact that during the consideration of the case the above issues were little investigated by the lower courts, the Supreme Court of Russia canceled the decisions and sent the case for reconsideration (decision № 305-ES21-2625 of June 24, 2021).