Subject of Dispute: Invalidation of the Surety Agreement concluded between LLC “Sumy Machine-Building Scientific and Production Association” and JSC “Bank Credit Dnipro” in 2016.
Main Arguments of the Court:
The Supreme Court pointed out the need for a thorough verification of the good faith of the transaction, especially if it was concluded during a period when the debtor had obligations to creditors. The Court drew attention to the fact that the courts of previous instances did not clarify the actual purpose of concluding the surety agreement, did not assess the economic content of the transaction, and did not verify whether the purpose of the agreement was to avoid fulfilling obligations to creditors.
Court Decision: The Supreme Court reversed the previous court decisions and referred the case for a new review to the court of first instance for a detailed examination of the circumstances of the surety agreement’s conclusion.
