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Posted On

14
September
2021

Grand Chamber of Supreme Court returns PrivatBank's case on payment of $350 mln to Surkis companies for consideration by Civil Court of Cassation

KYIV. Sept 14 (Interfax-Ukraine) – On Tuesday, the Grand Chamber of the Supreme Court returned to the Civil Court of Cassation the case on appeal of the court decision of 2017 regarding the obligations of PrivatBank (Kyiv) to service the deposits of the Surkis brothers’ companies placed on the accounts of its Cypriot branch before nationalization, which estimate the obligations under them at $347.4 million.

"The Grand Chamber of the Supreme Court voted to return to the Civil Court of Cassation the case (No. 14-88сs21) on the cassation complaints of PrivatBank and the Cabinet of Ministers (…). I am afraid that with such approaches the decision will not wait for its long-awaited revision for a long time," wrote Supreme Court judge Viktor Prorok on Facebook that day.

The court rejected the bank’s petition to provide an opportunity for representatives of the financial institution to take part in the court session, the press service of PrivatBank told the Interfax-Ukraine agency.

As reported, the Pechersky District Court of Kyiv on February 9, 2017, by its decision on the lawsuit of the Surkis’ companies, obliged PrivatBank to fulfill the terms of deposit agreements concluded by the bank’s Cyprus branch with the relevant companies. An attempt by the Cabinet of Ministers to appeal this verdict in the court of appeals was unsuccessful. In turn, PrivatBank filed a cassation appeal.

In the meantime, on April 15, 2020, Kyiv’s Court of Appeals rejected the appeal of the state enforcement officer, leaving in force the explanation of judge Pidpaly of the 2017 decision in the form of PrivatBank’s obligation to compensate Surkis’ companies $250 million.

Based on the decision of judge Pidpaly, on April 28, 2020, six British companies-claimants at once applied to the state executive service with a statement on its compulsory execution, and on April 29, the state executive service of Pechersky District opened enforcement proceedings and sent a corresponding message to the debtor.

Legal adviser to PrivatBank Andriy Pozhydayev told Interfax-Ukraine that the total amount of the companies’ claims is $347.4 million.