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Dmitriy Taput comments on vindication case considered by Russian Supreme Court for

In March 2020, the Minsk Tractor Works Trading House (MTW TH) sold a tractor to AgroSnabzheniye, which resold it to Istoki LLC. However, the reseller failed to transfer the money for the machine, and, therefore, the tractor remained at the seller’s warehouse. At the same time, Istoki LLC, which had paid for the tractor, raised a claim seeking to obtain it from the Trading House. The first instance granted the claim, as the machine was owned by the claimant and was unlawfully held by the respondent. The appeal and cassation instances upheld the decision. In its application to the Supreme Court, the Trading House insists that an entity that has not obtained an item may not raise a vindication claim against an entity lawfully holding such item.

Given that the tractor was originally held by the Trading House, and AgroSnabzheniye failed to perform its payment obligations, there are good grounds to state that the Trading House lawfully retains the tractor, Dmitriy Taput of Petrol Chilikov agrees with MTW TH’s argument.

Demanding and obtaining an item in such instance would largely undermine the security function of lien, he adds.

Read full article (in Russian) here.