Our client, the largest grid company in the Southern Russia, has signed a contract with the customer on connecting to the power grid in the Temryuk district of the Krasnodar region. The company fulfilled its obligations under the contract and built networks and substations. However, the company was unable to complete the work, as the customer did not fulfill their obligations. The customer referred to termination of budget financing and, as a result, their inability to perform the contract.
In order to make the customer fulfill the contract, we filed a lawsuit on recovery of penalty for the delay in the performance of their obligations into the Krasnodar Region Commercial Court. We justified as follows: financing of the project was not terminated, the contract is still valid, which means the customer must execute it, as the customer fails to prove absence of their guilt in breaching the contract. Moreover, we have justified that the penalty was economically reasonable and accurately accrued with 20% VAT. We also justified that it was possible to accrue the penalty for entire price of the contract without the previously paid advance payment. While objecting to the arguments of the customer, we also justified that the case was under jurisdiction of the Krasnodar Region Commercial Court.
Upon considering the case, on June 6th, 2022, the Krasnodar Region Commercial Court satisfied the clients lawsuit and recovered 311 766 484 RUB from the customer for less than three months.Back