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The Supreme Court pointed to the possibility of challenging the resale of bankruptcy property as a single transaction

The Supreme Court pointed to the possibility of challenging the resale of bankruptcy property as a single transaction

As the Court explained, since the beneficiary is a party to a concealed transaction in which property is disposed of by the debtor, the right of creditors is to be protected on the basis of Article 167 of the Civil Code, and not by satisfying a vindication claim.

According to the lawyer, partner of Tenzor Consulting Group Anton Makeychuk, in this definition the Supreme Court reiterated its legal position on the issues of contesting the entire chain of transactions for the withdrawal of assets in a bankruptcy case.

“In general, this approach is certainly true and is consistent with the position on legal purism set forth by the Supreme Court earlier: it is unacceptable for the courts to formally comply with procedural legislation, thereby giving priority to the formal over the being,” the lawyer believes.

Lawyer newspaper material is available here.

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