Situation
The Arbitration Court of the Republic of Bashkortostan, Russia, ruled in favor of a Russian-resident LLC against a Belarusian joint-stock company. The wording of the decision was: ‘to recover the penalty for the cost of work performed up to the date of completion of the work.’ The general meeting of shareholders of the joint-stock company decided to liquidate. The liquidator refused to include this penalty in the creditors’ claims register. The problem was that Belarusian legislation does not provide for decisions to be made with a penalty formula without specifying its exact amount.
Work process
The attorney filed a lawsuit on behalf of the LLC to the economic court to compel the liquidator to include the debt in the register. In addition, he provided legal support for the negotiation process between the management of these companies.
Result
During the negotiation process, the parties made mutual concessions and decided to conclude a settlement agreement on the inclusion of a penalty of 10,000,000 Russian rubles in the register. The court’s decision was executed by transferring the debtor’s property to the client’s ownership.
The court's decision