By its ruling, the Federal Arbitration Court of the Northern-Western Circuit upheld the resolution of the Thirteenth Arbitration Court of Appeals, that dismissed the claims of CJSC “Cargo-Express” against OJSC “Klimov” (the city of Saint-Petersburg) for t

CJSC “Cargo-Express” filed a claim to the arbitration court for the collecting from FGUP “Factory named after V.Ya. Klimov” of the promissory notes debt, interest and penalties in connection with the failure to pay promissory notes issued on behalf of FGUP “Factory named after V.Ya. Klimov.”

The Arbitration Court of the city of Saint-Petersburg and Leningrad Region dismissed the filed claim, having referred to the claimant’s failure to submit the originals of the disputed promissory notes, and declined the defendant’s arguments about the absence of any liabilities with respect to the promissory notes in connection with the nullity of the transaction on issuing the promissory notes.

The Thirteenth Arbitration Court of Appeals acknowledged as proper the conclusion of the court of the first instance that the claimant failed to prove its claims due to non-submission of the originals of the promissory notes, and changed the resolution of the court of the first instance with regard to a petition for appeal filed by OJSC “Klimov”, stating that the defendant did not have any liabilities concerning the disputed promissory notes.

When issuing the promissory notes, FGUP “Factory named after V.Ya. Klimov” violated the requirements of the legislation to coordinate large-scale transactions of state unitary enterprises with the owner of property of such enterprises in the person of an authorized state agency, and such a violation resulted in the nullity of unilateral transactions on the issuing of promissory notes, and, as a consequence, the absence of any liability with respect to the disputed bills on the side on FGUP “Factory named after V.Ya. Klimov.”

The Federal Arbitration Court of the Northern-Western Circuit upheld the lawfulness of the findings made by the arbitration court of the appeals instance.

Alexander Evdokimov, advocate of the Law Firm “YUST”, was representing the interests of OJSC “Klimov” in all three judicial instances.