Nadmitov, Ivanov and Partners won a victory in the arbitration court of the cassation instance in the case of debt collection under a service agreement.
The first instance court satisfied the claims in full, but the appellate court overturned the decision, citing the expiration of the limitation period due to the alleged lack of authority of the defendant's top manager to recognize the debt, which interrupted the limitation period. The court also referred to the fact that the power of attorney, on the basis of which the vice president of the company acted, does not contain the powers of the said person to recognize the debt.
The arbitration court of the cassation instance did not agree with the appeal, citing procedural violations and sent the case for a new trial. The court, in particular, pointed out the absence of an imperative requirement to indicate in the power of attorney a separate power “to recognize a debt”, given that such a power may follow, including from the totality of powers granted to a representative.