RusBankrot
We know everything about bankruptcy
14/05/2024
Tuesday
THIS DAY IN HISTORY:
14 May 
1970 The creation of the CIS Economic Union.
1970 The creation of the CIS Economic Union.
1970 The establishment of the state of Israel and declaration of its independence.
1970 The establishment of the state of Israel and declaration of its independence.
1970 The sale of serfs at the public auctions was prohibited in Russia.
1970 The sale of serfs at the public auctions was prohibited in Russia.
14 May
1970 The creation of the CIS Economic Union.
1970 The creation of the CIS Economic Union.
1970 The establishment of the state of Israel and declaration of its independence.
1970 The establishment of the state of Israel and declaration of its independence.
1970 The sale of serfs at the public auctions was prohibited in Russia.
1970 The sale of serfs at the public auctions was prohibited in Russia.
THE EXERCISE OF THE RIGHT OF CLAIM MAKES IT IMPOSSIBLE TO RECOVER DAMAGES FROM AN INVALID TRANSACTION
The bankruptcy trustee appealed to the court with an application to hold the former head, as well as the debtor's participant and its director, vicariously liable.
Positions of lower courts
The requirements of the manager were partially satisfied by three instances.
The lower authorities indicated that the losses were incurred by the debtor as a result of the defendant's actions in making a transaction for the purchase and sale of real estate at a significantly inflated value, subsequently invalidated, between the director and the debtor. In this regard, the courts noted, losses should be recovered from the head in the amount of the difference between the funds recovered from the director and the funds obtained from the exercise of the right of claim against the latter.
Determining responsibility for non-transfer of documents and for making unprofitable transactions, the lower authorities established the difference between the total amount of outstanding debt to creditors and the losses collected from the head.
The position of the Supreme Court
The higher instance did not agree with the lower courts, annulled their judicial acts and determined to refuse to satisfy the application (Ruling of the Supreme Court of 11/23/2023 in case A05-8798/2018 (307-ES20-22591 (3,4)).
The Supreme Court cited the following arguments in support of its position:
• In the present dispute, a sum of money was recovered from the head, which exceeded the amount of outstanding creditors' claims established subsequently by the courts.
• The right to claim the specified amount from the head was realized by the company at auction, the proceeds were distributed among creditors. Selling a claim to a manager means selling a claim to another joint debtor, the director.
• When implementing the requirements for the head and director, the latter, for objective reasons, cannot return the received to the bankruptcy estate. Thus, they should provide execution to the assignee. Thus, the replenishment of the tender mass occurs through obtaining the price of the contract of sale of the named claim.
• Having received the proceeds from the sale of the right of claim at auction, the company cannot hope to recover from the director and the head of the damage caused by the invalid transaction in a subsidiary manner.
Positions of lower courts
The requirements of the manager were partially satisfied by three instances.The lower authorities indicated that the losses were incurred by the debtor as a result of the defendant's actions in making a transaction for the purchase and sale of real estate at a significantly inflated value, subsequently invalidated, between the director and the debtor. In this regard, the courts noted, losses should be recovered from the head in the amount of the difference between the funds recovered from the director and the funds obtained from the exercise of the right of claim against the latter.
Determining responsibility for non-transfer of documents and for making unprofitable transactions, the lower authorities established the difference between the total amount of outstanding debt to creditors and the losses collected from the head.
The position of the Supreme Court
The higher instance did not agree with the lower courts, annulled their judicial acts and determined to refuse to satisfy the application (Ruling of the Supreme Court of 11/23/2023 in case A05-8798/2018 (307-ES20-22591 (3,4)).The Supreme Court cited the following arguments in support of its position:
• In the present dispute, a sum of money was recovered from the head, which exceeded the amount of outstanding creditors' claims established subsequently by the courts.
• The right to claim the specified amount from the head was realized by the company at auction, the proceeds were distributed among creditors. Selling a claim to a manager means selling a claim to another joint debtor, the director.
• When implementing the requirements for the head and director, the latter, for objective reasons, cannot return the received to the bankruptcy estate. Thus, they should provide execution to the assignee. Thus, the replenishment of the tender mass occurs through obtaining the price of the contract of sale of the named claim.
• Having received the proceeds from the sale of the right of claim at auction, the company cannot hope to recover from the director and the head of the damage caused by the invalid transaction in a subsidiary manner.
05.12.2023
