The economic Court recognized the arbitration decision made in favor of Investohills
On 06.12.2021 the Northern Economic Court of Appeal refused to satisfy the application of the subsidiary Butterfly (previous name – SE Drinks Ukraine) in case No. 873/215/21 to cancel the decision of the Permanent Arbitration Court under the Association of Ukrainian banks (AUB) of 06.08.2021 in case No. 13/20, which partially satisfied the claim of LLC Financial company Investohills Vesta to SE Butterfly for debt collection for loan agreements (its amount is not specified; the initial volume of claims was UAH 30.9 million).
The state enterprise Butterfly motivated its demands to cancel the decision of the arbitration court by the fact that the company’s debt obligations to the Ukrainian professional Bank (UPB), the rights of claim of which were bought from the DGF by the financial company Investohills Vesta, were fulfilled in 2015. The arbitration court at the AUB did not agree with this argument.
At the same time, Article 350 of the economic Procedure Code of Ukraine defines a clear list of grounds on which an arbitration court decision can be overturned:
- A case in which an arbitration court decision has been made is not under the jurisdiction of the arbitration court in accordance with the law;
- The decision of the arbitration court was made in a dispute not provided for in the arbitration agreement, or this decision resolved issues that go beyond the scope of the arbitration agreement. If the decision of the arbitration court resolves issues that go beyond the scope of the arbitration agreement, then only the part of the decision that concerns issues that go beyond the scope of the arbitration agreement can be canceled;
- The arbitration agreement was declared invalid by the court;
- The composition of the arbitration court that made the decision did not meet the requirements of the law;
- The arbitration court decided on the rights and obligations of persons who did not participate in the case.
Since the arbitration court did not violate the norms of Article 350 of the CPC of Ukraine, there were no grounds for annulling the relevant decision, which the Northern Economic Court of Appeal agreed with.
In the state register, the founder of the state enterprise «Butterfly» is LLC Grus, the founders of which, in turn, are LLC Eurostroyinvest and LLC Light Trading Group, and the beneficiary is Alexander Koval.