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Determining the subject of the claim in the case of invalidation of electronic auctions


On July 4, 2023, the Grand Chamber of the Supreme Court, in the framework of case No. 233/4365/18, proceedings No. 14-96ts21 (EDRSRU No. 112406155), examined the issue of determining the subject who has the right to sue and which one specifically: "on declaring the purchase and sale agreement invalid" or "on reclaiming property"?

The owner has the right to reclaim his property from a person who illegally, without special database appropriate legal grounds, took possession of it (Article 387 of the Civil Code of Ukraine).

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If property under a contract of sale is purchased from a person who did not have the right to alienate it, which the acquirer did not know and could not have known about (a bona fide acquirer), the owner has the right to claim this property from the acquirer only if the property: 1) was lost by the owner or the person to whom he transferred the property into possession; 2) was stolen from the owner or the person to whom he transferred the property into possession; 3) left the possession of the owner or the person to whom he transferred the property into possession, not by their will, in another way (Part One of Article 388 of the Civil Code of Ukraine). Property cannot be claimed from a bona fide acquirer if it was sold in accordance with the procedure established for the execution of court decisions (Part Two of this Article in the wording in force at the time of the emergence of the disputed legal relationship).

The Grand Chamber of the Supreme Court previously concluded that the right to reclaim property from illegal possession may be held by both the owner and the lawful user of the property (see, for example, the resolutions of December 14, 2022 in case No. 461/12525/15-ц (paragraph 95), of April 18, 2023 in case No. 357/8277/19).