Legal positions of courts on the issues of challenging transactions

article 28/02/2022

Challenging a transaction is a procedure designed for invalidating a transaction. It is a subject of Chapter III of the Federal Law dated 26.10.2002 No 127-FZ “On Insolvency (Bankruptcy)”. In case the court invalidates a transaction, all the consequences of such an agreement or a contract terminate.

Based on the summary of court rulings, transactions can be challenged, including the following cases:

Artificial transaction.
This applies to a situation when a transaction was concluded in the presence of information in the Unified State Register of Legal Entities that the organization is in the process of being wound up and in the data bank of enforcement proceedings - the presence of information about enforcement proceedings. Those are proof of awareness of a party to a transaction about the insolvency of a debtor.

Transfer of a licensed activity to another person.
Such actions can be challenged as a transaction or chains of transactions in the bankruptcy case of a debtor.

Usage of previously alienated property.
Including usage on the basis of a lease agreement. It indicates a suspiciousness of alienation.

Declaration of an actual affiliation.
The absence of formal affiliation can be challenged and affiliation declared as actual. This also applies to former spouses.

Intra-group guarantee.
That indicates an intention to increase controlled accounts payable in case of bankruptcy.

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