How to collect debts and get even more than they asked for in the lawsuit?

Based on the Resolution of the Constitutional Court of the Russian Federation No. 40-P of 22.07.2021, No. 1-PU of 12.01.2021, another way to collect more than was awarded in the decision appeared.

If the debtor has not executed the court’s decision for a long time, the recoveree has the right to request the court to index the amount. We draw your attention to the fact that we are talking only about decisions in which money is collected.

How was it before?

In civil and arbitration proceedings, there have always formally been rules on indexing, but in fact they did not work.

In practice, the courts have proposed, as an alternative to indexation, to collect interest for the use of money under Article 395 of the Civil Code of the Russian Federation.

What has changed?

Resolution of the Constitutional Court of the Russian Federation No. 40-P of 22.07.2021, No. 1-P of 12.01.2021 suggests using the consumer price index when recalculating the amount. You can find it on rosstat.gov.ru.

The Constitutional Court also found partially unconstitutional articles of the Civil and Arbitration Procedural Codes of the Russian Federation on indexation.

“The applicants have the right to expect that they will be compensated for the costs of inflation. This is part of the right to judicial protection.”

How do the courts apply the new position?

By Ruling of the Supreme Court of the Russian Federation No. 1-KG21-5-KZ dated 22.06.2021, the Supreme Court supported the position on indexing:

“The courts should not have refused the applicant only because there is no law with an exact criterion for calculating indexing.”

The Supreme Court also found that indexing is not a measure of responsibility and that is why it cannot be replaced with interest under Article 395 of the Civil Code.

Our legal team is ready to send you step-by-step instructions on this issue upon request, just write to us info@sterngoff.com