What you need to know about the beginning of the limitation period

What you need to know about the beginning of the limitation period

What you need to know about the beginning of the limitation period
As part of one of the bankruptcy cases, the economic board considered the issue of the beginning of the limitation period in the situation when challenging the debtor's transaction. The courts of lower instances referred to the omission of a three-year period for filing an application, but the Supreme Court of the Russian Federation urged not to rush to such conclusions.

When considering the insolvency case of a legal entity, one of its potential creditors appealed to the court with a demand to challenge the contract of sale of immovable property. In substantiating his claims, the applicant referred to the fact that earlier an agreement had been reached between him and the debtor on the transfer of the disputed object to ownership, the applicant, for his part, fulfilled all obligations under the concluded agreement.

Despite this, the debtor has repudiated the disputed object in favor of a third party.

It was about non-residential premises, during the construction of which the applicant acted as a co-investor, and the moment of transfer of the object should have come after the completion of construction. The courts of lower instances considered that the statute of limitations began to flow from the moment when the object was handed over, and the applicant missed the opportunity to challenge further transactions with the premises. However, the Supreme Court of the Russian Federation pointed to the debtor's letter dated several years later, where he stated his intention to transfer the premises to the applicant if he pays the costs of registration of ownership. 

Thus, the Supreme Court of the Russian Federation came to the conclusion that the limitation period for the creditor should begin from the moment he fulfills his obligation to pay the expenses claimed by the debtor. This period until the moment of filing an application to challenge the agreement entered the three-year limitation period (definition No. 305-ES21-27461 (2) dated June 14, 2022 in case No. A40-152083/2017).


22.06.2022