THE SUPREME COURT OF RUSSIA: HEIGHTENED REQUIREMENTS SHOULD BE INTRODUCED FOR AFFILIATED CREDITORS

The bankruptcy of debtor is often a complex process, since there may not be enough property to satisfy the claims of all creditors, and each application for inclusion into the list of creditors' claims must be substantiated.

As for the applications of the creditors affiliated with the debtor, higher requirements should be introduced for them, believe the judges of the Supreme Court of the Russian Federation. In the conditions of loyalty of the parties, it is much easier for the creditor to provide comprehensive evidence of the execution of the agreement, which ultimately can lead to the withdrawal of part of the assets and damage to the rest of the bona fide creditors.

One of such cases was considered by the judicial board for economic disputes of the Supreme Court and the judgment was not given in favor of the creditor affiliated with the debtor.

The judges of the first instance and the appellate instance, as well as the judicial board of the district court, refused to include the creditor's claim in the register, citing the groundlessness of the concluded surety agreement, on which the creditor based his claims.

The Supreme Court of the Russian Federation agreed with the above mentioned arguments, adding that in the situation under consideration, the creditor did not provide sufficient evidence on the size and reality of the debt, which was also the basis for the claims rejection (determination of August 14, 2020 in case No. 308-ES19-9133 (12)).