In this case the debtor’s liquidation manager illegally offset bank’s claims to secured claims knowing for sure that all pledged property was sold and proceeds therefrom were transferred to the bank prior to the bankruptcy proceedings and by doing so it deprived the bank of the opportunity of satisfying its creditor’s claims.

At the time of Client’s appeal, the Court of Appeal already rendered a resolution in favour of the liquidation manager. Despite the ambiguous case law, the Supreme Court upheld our Client’s position, having cancelled the decisions of courts of previous instances, and stated that recognition of claims as secured claims arises out of identification whether the debtor has any pledged property.