The lawyers of FC “Investohills Vesta” make another contribution to the development of a unified law enforcement practice on insignificant transactions

On 27.05.2021, as a result of the formation of the legal position, the company’s lawyers questioned the practice of applying the substantive law established by the Joint Chamber of the Supreme Court as part of the Cassation Economic Court of 05.06.2020 in case No. 920/653/18. According to the Decision of the Joint Chamber, the courts cannot invalidate transactions with a Bank in a state of liquidation (in which transactions were settled outside the correspondent account).

The established practice has leveled the possibility of applying the consequences of the nullity of transactions and returning to the liquidation mass of Banks the property sold, without actual payment, or the right of claim. (cases when, due to intra-bank accounting “transactions”, the cash accounting data is changed, without actually depositing the transaction value to the Bank’s accounts).

Since the applicable rules limited the possibility of protecting the rights of creditors, the lawyers of “Investohills Vesta” developed a position, due to which there is a possibility of reviewing the established practice on the nullity of transactions in which payment was made, contrary to the NBU resolution, not through a correspondent account. Thus, the case on the application of the consequences of the nullity of transactions conducted by one of the company’s debtors to form a legal position was sent to the Grand Chamber of the Supreme Court for consideration. The positive result achieved gives hope for changes in the norms of law enforcement practice. An additional tool for influencing an unscrupulous borrower is a guarantee that the funds will be returned to depositors and creditors.