Latest from our litigation team
15/12/2016

Latest from our litigation team

Law Offices of Grechkivsky successfully represented ‘B LLC’ in their lawsuit against ‘D PJSC’ concerning recovery of debt under contract of lease. On 6 December 2016, Supreme Economic Court of Ukraine left standing the judgement rendered by Kyiv Economic Court of Appeal in favor of ‘B LLC’, requiring ‘D PJSC’ to repay its debt under contract of lease.

From a practical point of view, decision of Supreme Economic Court of Ukraine is particularly interesting, taking into account the longstanding court practice that does not favor clients of banks under interim administration or liquidation. Typically, claims against such banks are left without satisfaction.

In this particular case, bank ‘D PJSC’ became indebted to ‘B LLC’ while under liquidation. Between the phase of interim administration and a certain moment of liquidation phase, the bank kept up with its contractual obligations. At the time of contract termination, parties signed Deed of Transfer and Acceptance, which provided for the bank (namely – its liquidator) to pay utility bills for the entire contractual period. Despite that, the bank did not make any payments and referred to s.3 art.46 of the Law of Ukraine ‘On System for Natural Persons’ Deposits Insurance’.

Supreme Economic Court of Ukraine in its judgement ruled that due to the fact that the ‘...indebtedness occurred after liquidation procedure for ‘D PJSC’ had been initiated and hence – after deadline for debt claims submission, and therefore could not have been submitted within the deadline provided for by s.1 art. 49 of the said Law. [The Court] reached conclusion that there are sufficient legal grounds to grant the relief requested’.

Summing up, the debt originating after the deadline provided for by s.1 art. 49 of the Law of Ukraine ‘On System for Natural Persons’ Deposits Insurance’ that thus could not have been submitted as a debt claim by means of general procedure, must be repaid at the phase of bank liquidation in compliance with arts. 525, 526, 530 of Civil Code of Ukraine, art. 193 of Commercial Code of Ukraine and arts. 36, 46 of the Law of Ukraine ‘On System for Natural Persons’ Deposits Insurance’.

Ivan Grechkivsky
Attorney at Law, Managing Partner
Alyona Zvolinska
Associate