Subject of the Dispute: PrivatBank is attempting to invalidate real estate transactions and recover debt under a credit agreement.
Main Arguments of the Court:
The court pointed out that when determining the jurisdiction of the case, it is insufficient to use only the formal criterion of participants. The nature of legal relations is decisive. In this case, the main party is an individual – the borrower under the credit agreement, therefore, the case should be considered under civil court proceedings. The Court of Appeal erroneously closed the proceedings, considering the case to be commercial, since real estate was contributed to the authorized capital.
Court Decision: The Supreme Court revoked the ruling of the Court of Appeal and referred the case for a new review to the appellate instance.
