The Cassation Court sided with a Kazakh woman who sought to be declared bankrupt. Previously, her request was denied due to her stake in an LLC's charter capital, reports infohub.kz.
According to the press service, the Cassation Court for Civil Cases reviewed the case of citizen X, who applied for judicial bankruptcy. The woman, a group II disabled person suffering from an oncological disease, asked to be declared bankrupt. Her debt amounted to 4.5 million tenge. However, the courts of first and appellate instances refused her because she owns a 25.9% stake in the LLC's charter capital.
But the Cassation Court disagreed with these conclusions. The court noted: "The LLC has not actually been operating for more than two years, its property is valued at only 103,000 tenge, and the value of the applicant's share is only 26,677 tenge, which is clearly insufficient to cover the debt. Moreover, the applicant receives no income from her participation in the LLC; her only source of funds is a disability allowance."
The court recognized that the mere possession of a stake in a legal entity is not a basis for refusing to apply judicial bankruptcy procedures. When considering such cases, the real value of assets and the debtor's actual solvency must be taken into account.
As a result, the court overturned the rulings of lower courts and applied the judicial bankruptcy procedure to citizen X.