OJSC VTB Bank v Parline Ltd and others

Bank – Loan. The claimant Russian bank entered into a loan agreement with a Russian company, under which it granted a loan to the company. The company defaulted on the loan and subsequently entered into bankruptcy proceedings in Russia. The bank brought proceedings against the defendants, who it contended had, at the material times, had control of the company and had allegedly caused the company to become insolvent and to cause it loss. The Commercial Court, in dismissing the bank's claim, held that, on the evidence, the bank's case on causation failed and where the bank's loss had not been proved with the necessary certainty and specificity. Further, the bank's claim under the Russian Civil Code could not be brought until the conclusion of the bankruptcy process, which had yet to occur.