Court of Appeal Confirms Legality of Decision by NBU to Declare CB Nadra Insolvent
OREANDA-NEWS. The Kyiv Administrative Court of Appeal confirmed the legality of the decision by the National Bank of Ukraine to declare CB Nadra PJSC insolvent and the sufficiency of actions taken by the regulator in this regard.
According to the case materials, a number of term deposit agreements for a total of approximately USD 85,000 were entered into between an individual and CB Nadra PJSC in 2012. Upon maturity of the deposits as indicated in the agreements, a claimant turned to CB Nadra PJSC to withdraw the deposits. However, the Bank failed to fulfil its obligations under the agreements.Instead, the Court ruled that the NBU has adopted the resolutions on declaring the Bank problematic and insolvent based on well-founded reasoning following the principle that all are equal before the law.
The Court established that the activities of CB Nadra PJSC failed to comply with the requirements of applicable banking laws and qualified them as risky and thus posed a threat to the interests of depositors and other creditors of the bank. Furthermore, in disregard of their obligations, the bank’s qualifying shareholders failed to take timely measures to prevent the bank from slipping into insolvency.
In view of the decision by the NBU to declare the Bank proplematic, followed by the decision to declare it insolvent, a panel of judges concluded that the NBU took measures to bring the bank back to solvency and prevent it from being declared insolvent.
Having examined all the case materials, a panel of judges at the Court of Appeal upheld the ruling of the court of first instance to reject a plaintiff's claim.