KPD CONSULTING Law Firm has reached the success for the Client in the court case of gift agreement invalidation.
The international bank operating in Ukraine applied to KPD Consulting Law Firm for legal assistance due to restrains in the debt recovery from its borrower. It turned out that after obtaining the court decision on debt recovery entered into force the debtor gifted to his wife an immovable property owned by him. While enforcing the court decision on repayment of overdue loan the Client has found that the debtor has no property to seize.
KPD Consulting documented the fact of the property disposal by debtor and applied to court with a claim on invalidation of the said gift agreement as well as on cancel of the new owner’s (the debtor's wife) title to the immovable assets.
As a result, the Court of First Instance and the Court of Appeal ruled to satisfy the Client’s claim completely. The court agreed with the KPD attorneys' arguments that the asset disposal by making a gift shall not be employed for evasion of debt repayment. The court stated that the debtor, by avoiding a debt repayment and disposing a property owned by him on the basis of a gift agreement concluded with his wife, acted evidently in bad faith and abused the creditor’s rights. Since the transfer of property took place in breach of the creditor’s rights as it was intended to avoid the forced seizure of the debtor’s property. The Court of Appeal upheld such approach and legal argumentation.
In addition, the courts decided that the Client's legal costs (inter alia legal fees of KPD Consulting) shall be recovered from the debtor in full.
Mr. Igor Kalitventsev the Managing Partner at KPD Consulting Law Firm headed the attorneys’ team in this matter. Mr. Maksym Cherednichenko an attorney-at-law of the firm’s Dispute Resolution Practice supported the case in court.
Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Igor Kalitventsev (email@example.com). We will be pleased to assist You. The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.