OREANDA-NEWS. May 08, 2014. The Presidium of the Supreme Arbitration Court of the Russian Federation announced the substantive provisions of the findings that recognize legitimacy and reasonableness of the decisions issued by the Office of the Federal Antimonopoly Service in the Republic of Mordovia with regard to a competitive manager of “Tengushevskoe ATP” State Unitary Enterprise.

Earlier the Antimonopoly Service established that the competitive manager as an open auction organizer had failed to publish information in an information notice specified in Sub-Clauses “i”, “n” – “r” Clause 3.2 of the Procedures for open competitive bidding in an electronic form for sale of property (enterprise) of debtors during bankruptcy procedures (approved by No.54 Order of the Ministry of Economic Development of 15.02.2010), and partly failed to publish information under Sub-Clauses “k” and “c”.

The competitive manager was issued a determination to cancel the auction.

The competitive manager disagreed with the decision and determination of the Antimonopoly Service, and filed a lawsuit to the Arbitration Court of the Republic of Mordovia, which dismissed the claim.

The Court of First Instance confirmed legitimacy of the decision and determination of Mordovia OFAS that the competitive manager violated Clause 10 Article 110 of No.127-FZ Federal Law “On Insolvency (Bankruptcy)” of 26.10.2002 and Clause 3.2 of the Procedures of an open electronic auction for sale of property (enterprise) of debtors during bankruptcy procedures.

Then the Appeal Court concluded that the antimonopoly body does not have the powers to investigate complaints about actions of the competitive manager in the auction for sale of the debtor property. According to the Appeal Court, such complaints must be considered under Article 60 of the bankruptcy law. The Cassation Court agreed with the conclusions made by the Appeal Court.

Mordovia OFAS lodged a claim to the Presidium of the Supreme Arbitration Court to exercise a supervisory review of the rulings of the Appeal and Cassation Courts.

The Presidium of the Supreme Arbitration Court found OFAS arguments justified, and reversed the rulings of the Appeal and Cassation Courts.

“The position of the Presidium of the Supreme Arbitration Court on the issue makes a precedent and is important for enforcement practice. At the moment possibility of Arbitration Courts to abolish decisions under Article 18.1 of the Law “On Protection of Competition” against competitive managers is practically eliminated due to the antimonopoly authorities lacking jurisdiction”, pointed out the Head of Mordovia OFAS, Yulia Popkova.