1. The subject of the dispute is the appeal against the decision of the state executor to terminate the enforcement proceedings, in which the funds recovered from LLC “Brewery” in favor of the Cherkasy City Council as the recoverer, were transferred to repay the debt of the Cherkasy City Council itself in another enforcement proceeding.
2. The court of cassation instance, when considering the case, proceeded from the fact that according to the Law of Ukraine “On Enforcement Proceedings”, in cases where the recoverer is simultaneously a debtor in another enforcement proceeding, the use of recovered funds to repay his debt is allowed. The court also took into account that the land lease payment for communal property has a “dual” legal nature, but in this case civil relations prevail, since the city council does not perform public-authority functions in relation to the debtor. The court noted that all community funds are kept in the State Treasury, and budget revenues consist of both tax revenues and revenues under civil contracts, therefore, the use of recovered funds to settle accounts with community creditors does not contradict the principle of equality of subjects of civil law. The court emphasized that there is no evidence that the funds were used for purposes not provided for by Article 47 of the Law of Ukraine “On Enforcement Proceedings”, and that the actions of the state executor comply with the requirements of the legislation. The court departed from the legal conclusion of the Supreme Court, stated in the ruling of the Supreme Court dated 08.08.2025 in case No. 925/1737/21, which was adopted by the panel of judges of the Cassation Economic Court, which are part of the Chamber.
3. The Supreme Court dismissed the cassation appeal of the Cherkasy City Council, and the decisions of the previous instances remained unchanged.
