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Judgment of the Presidium of the Supreme Commercial Court of 11 October 2011 № 4820/11 in the case Ivan Zabolotskii, an entrepreneur vs The Administration of the municipality “Nemugunskii nasleg”

Point of law: when does the obligation to pay interest for the use of another’s means arise and, accordingly, when should commence the period of limitations with regard to such obligation?

Alternative solutions: 1) from the moment of delay in performance of underlying principal obligation; or 2) with the expiry of the period for which the interest is accrued, so that the period of limitations should be calculated separately for each overdue payment.

Ratio decidendi: the first solution is legally correct.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.

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All court decisions in the case

 

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