Subject of Dispute: Recovery of Penalties and Fines Imposed by the Antimonopoly Committee of Ukraine on LLC “Alternative Energy Resources” for Anti-Competitive Concerted Actions, after the Company’s Bankruptcy Declaration.
Main Court Arguments: The Supreme Court established that after the initiation of bankruptcy proceedings, the accrual of any economic sanctions is terminated, regardless of their type. The Court emphasized that the provisions of the Bankruptcy Procedures Code of Ukraine take precedence over other laws, and therefore, fines and penalties cannot be recovered from a bankrupt entity. The Antimonopoly Committee does not have advantages among other creditors and must act within the bankruptcy procedure.
Court Decision: The Supreme Court denied the cassation appeal of the Antimonopoly Committee and upheld the previous court decisions refusing to recover fines and penalties.
