The Supreme Court of the Russian Federation did not allow a disaster in the bankruptcy of a water utility in Vorkuta

The Economic Board agreed with the position of the arbitration manager of the Vorkuta city Vodokanal LLC, which is in the insolvency procedure. The anti-crisis manager, during the conduct of the procedure, made part of the payments necessary for the operation of the enterprise. At the same time, the tax inspectorate expressed disagreement with this position, a dispute broke out.

As part of the bankruptcy case of the only water treatment company in Vorkuta, Vodokanal LLC, which has been going on for several years, one of its managers decided to send part of the debtor's funds to purchase resources and materials that will allow the company to continue performing its functions.

According to the anti-crisis manager, this was done in order to prevent a catastrophe, because without the company's work in Vorkuta there is simply no one to purify water for technical and drinking purposes.

However, the tax inspectorate, which is one of the creditors, considered this decision incorrect, indicating that the payments made should not have been prioritized. The courts of lower instances agreed with this position, indicating that no catastrophe was prevented by the decision on settlements for disputed payments.

The Supreme Court of the Russian Federation, in turn, expressed a different opinion, reminding colleagues that without the acquisition by the company of the materials necessary for the implementation of its activities, the work on water purification in the city will simply stand up. This fact in itself will lead to serious socio-economic consequences even without any destruction of infrastructure.

The Supreme Court of the Russian Federation called on the courts in such cases to investigate in detail exactly which payments were made and how these actions prevented a possible catastrophe.

The case was sent for reconsideration to the first instance (definition No. 301-ES19-21027 (4) of May 26, 2022).