The Higher Administrative Court of Ukraine has ruled as groundless a claim filed against the National Bank of Ukraine and its executive officers, accusing the latter of failing to apply timely enforcement measures against CB Nadra PJSC. The Court has rejected a claim against the NBU and upheld the rulings by courts of the first instance and the Court of Appeal.
According to case materials, an individual filed a lawsuit in the Kyiv County Administrative Court, demanding that the court recognize the actions taken by the NBU and its officials as inappropriate. The plaintiff also claimed compensation from the regulator for moral damages. According to the plaintiff, the NBU’s inaction and its inappropriate actions drove this bank to insolvency, which ultimately led to this bank being liquidated.
Having examined the case materials, the aministrative courts of the first instance, as well as the courts of appeal and cassation instances ruled that the NBU took appropriate and adequate actions to prevent the bank from slipping into insolvency and took measures to restore its solvency. This is evidenced by the decision to declare this bank problematic taken by the NBU within the scope of its powers and in the manner prescribed by the Constitution of Ukraine and applicable laws of Ukraine.
The courts rejected a claim filed by the plaintiff on the grounds that enforcement measures applied by the regulator against CB Nadra PJSC were commensurate to the violation committed by the bank and the threat posed to the interests of depositors and other creditors.
On 5 February 2015, the NBU declared CB Nadra PJSC insolvent. On 4 June 2015, the regulator adopted a decision on withdrawal of the banking license and liquidation of this bank.