On December 18, 2024, the Presidium of the Supreme Court of the Russian Federation issued a review of judicial practice concerning the indexation of monetary amounts awarded by the court up to the date of the court decision's execution.
This review provides significant clarifications on key aspects of indexation for monetary sums awarded by the court. The legal positions address procedural issues related to the indexation of awarded amounts, which have caused substantial difficulties in judicial practice.
The main legal positions outlined in the review are as follows:
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The accrual of interest as a penalty for breaching obligations does not preclude indexation for the same period. Indexation applies to all elements of the awarded amount, including the principal debt, damages, penalties, fines, interest, and legal costs.
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Indexation begins from the date of the court decision or from the specified date of execution stated in the decision. However, the indexation itself is not subject to further indexation, as it is not considered an awarded sum.
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Amounts awarded in foreign currency are not subject to indexation, as inflation in rubles compensates for financial losses.
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Indexation is possible only after the full or partial execution of the court act, as its purpose is to compensate the claimant's financial losses, not to incentivize compliance with the decision.
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In cases of creditor substitution, indexation is carried out upon the successor's application. This right is also available to an assignee unless explicitly prohibited by the assignment agreement. The right to indexation may be transferred even after the court act's execution.
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An application for indexation may be filed within one year from the date of execution of the court act or part thereof.
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Indexation applies from the date of the initial decision, even if it is overturned by the appellate court, provided the decision is subsequently upheld.
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For incomplete months, indexation is calculated proportionally to the number of days of non-execution during the relevant period.
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In cases involving budgetary funds, indexation begins on the day the enforcement documents are submitted for execution.
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In bankruptcy cases, indexation may be claimed within one year from the start of the initial bankruptcy procedure, but only for the period preceding its initiation. Moratorium interest on register claims may be indexed in the same manner as the principal debt.
The law firm "Nadmitov, Ivanov & Partners" represents clients in arbitration and general jurisdiction courts.
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