Dispute on the Formation of List of Bank Depositors, Who Have Right to Reimbursement at the Expense of the Deposit Guarantee Fund Shall Be Referred to the Jurisdiction of Administrative Courts – SC GC

Plaintiffs applied to court with a demand to acknowledge as unlawful blocking of funds on bank accounts by representatives of the Deposit Guarantee Fund authorized to liquidate the bank, to oblige the defendants to provide the DGF with information about including the plaintiffs into the bank depositors list, as well as to recover property damage and non-pecuniary damage in their favor.

Local court had closed proceedings in the case on the grounds that the noted claims should be considered in civil judicial procedure, and the appeal instance court upheld this judgment. The relevant resolution was motivated with the fact that the dispute on the formation of list of bank depositors, who have right to reimbursement at the expense of the DGF guaranteed by the state, the approval of the depositors register for performing the guaranteed payments, other issues regarding the deposit funds of depositors, is a public-legal one and shall be referred to the jurisdiction of administrative courts.

While solving the issue of jurisdictional affiliation of the dispute, the Grand Chamber of the Supreme Court took into account the following.

The DGF is a state specialized institution, legal entity of public law, performing the functions of state management in the sphere of guaranteeing individuals’ deposits. The DGF’s authorized person, in this case, performs on the DGF’s behalf the delegated authority as for guaranteeing individuals’ deposits; therefore, the dispute on the formation of the list of bank depositors, who have right to reimbursement at the expense of the DGF guaranteed by the state, and the approval of the depositors register for performing the guaranteed payments is a public-legal one and shall be referred to the jurisdiction of administrative courts.

The plaintiffs’ demands on the compensation of damages are derived from the basic demands, and pursuant to Part 5 of Article 21 of the Code of Administrative Procedure of Ukraine shall be considered by an administrative court, since they have been claimed in the same proceedings with the demand to solve the public-legal dispute.

Therefore, the plaintiffs’ claims, which by their nature are the result of the dispute on the correctness of calculation and payment of funds by the DGF upon the relevant deposit within the guaranteed sum of compensation, are the demands to the DGF, which shall be considered in administrative judicial proceedings.

Follow the link to see the full text of the Resolution of the Grand Chamber of the Supreme Court in the case No. 461/2035/17 (Proceedings No. № 14-552цс19) of 26 February 2020: http://www.reyestr.court.gov.ua/Review/87951360.