Disputes related to bankruptcy and liquidation, the basis for declaring a debtor bankrupt in court is his insolvency, that is, the debtor's inability to fully satisfy creditors' claims for monetary obligations established by the court.

The Russian State Institution "Department of State Revenue for the city of Semey of the Department of State Revenue for the East Kazakhstan region" (hereinafter referred to as the Department, the tax authority) applied to the court for declaring LLP "S" (hereinafter referred to as the Partnership, the debtor) bankrupt. The application was granted by the decision of the specialized interdistrict Economic Court of the East Kazakhstan region dated July 24, 2019. The partnership was declared bankrupt and liquidated, and bankruptcy proceedings were initiated. By the decision of the Judicial Board for civil Cases of the East Kazakhstan Regional Court dated November 11, 2019, the decision of the court of first instance remained unchanged. The decision of the specialized interdistrict Economic Court of the East Kazakhstan region dated July 24, 2019, and the decision of the Judicial Board for Civil Cases of the East Kazakhstan Regional Court dated November 11, 2019 remained in force. The Judicial Board for Civil Cases of the Supreme Court has left judicial acts of local courts unchanged on the following grounds. It follows from the case file that the Partnership was initially registered as a legal entity on March 31, 1998, and subsequently re-registered on October 12, 2014 at the Semey City Justice Department. The tax authority, applying to the court for declaring the Partnership bankrupt, indicated that as of May 21, 2019, this legal entity had a tax debt in the amount of 110,824,727 tenge, including the principal debt in the amount of 65,546,651 tenge, and a fine in the amount of 46,278,076 tenge. According to the conclusion of the interim manager dated July 4, 2019, the debtor has declared creditors, the total amount of whose claims is KZT 5,335,064,319, including debt owed to the Fund for secured loan obligations is KZT 4,519,130,987, to the Office of Taxes and Other Mandatory Payments to the Budget – KZT 111,672,968.82, to JSC "K" for loan obligations not secured by collateral – 704,260,363 tenge.

Disputes related to bankruptcy and liquidation, the basis for declaring a debtor bankrupt in court is his insolvency, that is, the debtor's inability to fully satisfy creditors' claims for monetary obligations established by the court.

The total book value of the debtor's property assets as of January 1, 2019 is 500,841,249 tenge. The debtor has provided information on the availability of current accounts receivable in the amount of 106,000 tenge as of January 1, 2019. The total amount of creditors' claims is many times higher than the total value of the Partnership's assets. There are no promising investment projects to improve the debtor's financial situation. In this regard, there are grounds for declaring the Partnership bankrupt. The local courts, satisfying the Management's application, proceeded from the requirements of subparagraph 12) of Article 1 and paragraph 5 of Article 4 of the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy" (hereinafter – The Law), according to which the basis for declaring a debtor bankrupt in court is his insolvency, that is, the debtor's inability, as established by the court, to fully satisfy creditors' claims for monetary obligations, to make wage settlements with persons working under an employment contract, to ensure the payment of taxes and other mandatory payments to the budget, social contributions to the State Budget. social insurance fund, as well as mandatory pension contributions and mandatory occupational pension contributions, deductions and/or contributions for compulsory social health insurance. The courts took into account that the debtor's insolvency and the impossibility of restoring his solvency were established by the decisions of the specialized interdistrict Economic Court of the East Kazakhstan region of February 11, 2019 and May 16, 2019, which entered into force in cases of the debtor's rehabilitation procedure, which denied the Partnership's application.

The Court of appeal gave a proper legal assessment to the plaintiff's arguments about the possibility of restoring solvency. Thus, on the basis of an agreement dated December 3, 2018, the Partnership transferred to the temporary gratuitous use of U LLP the building of the administrative building in Semey at 164 Satpayev Street; the building of the tannery along with equipment (ash and finishing shops), storage facilities with a total area of 9,400 square meters.m. The plant's treatment facilities are in use by "E" LLP. The liquid assets of the Partnership were secured and transferred to partially repay the debt owed to the Fund. The insufficiency of the Partnership's funds to repay the debt, the lack of liquid assets and any financial and economic activities indicate the debtor's insolvency, and therefore the court's conclusions on declaring the debtor bankrupt comply with the requirements of paragraph 1 of Article 56 of the Law, as well as paragraph 13 of the regulatory resolution of the Supreme Court of the Republic of Kazakhstan dated October 2, 2015 No. 5 "On the practice of applying legislation on rehabilitation and bankruptcy" (hereinafter – a regulatory resolution), since judicial acts are based on an analysis of the debtor's financial condition and an assessment of the debtor's insolvency on the merits. By virtue of the above, the circumstances established by the local courts, indicating the debtor's insolvency, correspond to the case file. 

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