The subject of the dispute is the recovery of credit debt from the heirs of the borrower under the loan agreement.
The court of cassation noted that the courts of previous instances did not take into account that the enforcement proceeding for the recovery of debt from the deceased debtor was closed, and therefore, the obligations passed to the heirs. The court emphasized that the creditor has the right to demand fulfillment of the obligation in kind from the heirs who accepted the inheritance, within the value of the inherited property, and the choice of the method of protection belongs to the creditor. The court also pointed out that the courts did not investigate the circumstances regarding the value of the inherited property and the limits of liability of the heirs. The court noted that the application of special methods of protection, which are defined by the legislator to protect certain categories of civil rights, does not exclude the possibility of also applying general methods of protection of civil rights and interests. The Court indicated that the application of the rule of Article 1282 of the Civil Code of Ukraine does not exclude the possibility of applying an alternative method of protection, in particular paragraph 5 of the second part of Article 16 of the Civil Code of Ukraine on the compulsory enforcement of an obligation in kind.
The Supreme Court overturned the appellate court’s decision and sent the case for a new trial to the appellate court.
