When does the court refuse approval?
Article 213.18 of Law No. 127-FZ sets out five grounds. Identify the particular objection to your draft: a new calculation does not automatically remedy defective voting or inaccurate documents.
| Ground | What to check |
|---|---|
| Non-compliance with statutory requirements concerning the debtor’s debt | Debtor eligibility, contents, period and calculations |
| Failure to disclose Article 213.13(2) circumstances where a relevant creditor or authorised-body motion exists | Disclosures in the plan and notification evidence |
| Breach of the Article 213.16 approval procedure | Minutes, registered votes and procedural compliance |
| Inaccurate information in the plan or attachments | Income, property, obligations and primary documents |
| Terms contradicting legislation | Participants’ rights, permitted payments and lawful terms |
Current obligations payable under the law and registered first- and second-priority debts must also be paid before approval under Article 213.17(1). A promise to pay them sometime after approval does not replace checking those payments.
Why can an approved schedule still be infeasible?
Paragraph 31 of Supreme Court Plenum Resolution No. 45 dated 13 October 2015 prohibits approving a manifestly economically unfeasible plan. The schedule must leave the debtor and dependants living funds at least equal to the applicable regional subsistence minimum. Substantial infringement of minors’ rights is also impermissible.
Hypothetical example, not a reported case. Verified monthly income is RUB 55,000, the proposed instalment RUB 45,000 and documented necessary family expenses RUB 30,000. The RUB 10,000 remainder does not cover those expenses. Check income, expenses and protected funds rather than treating employment alone as proof of feasibility. These illustrative figures are not regional statutory amounts.Provide evidence of income throughout the proposed period, dependants and repayment sources. Current Article 213.14 permits an ordinary maximum of five years, or three years for approval under Article 213.17(4). The old universal claim that every plan has a three-year maximum should not be used.
Meeting rejection is not yet a court refusal
If the meeting does not approve the draft, a participant may request extra time to revise it. Article 213.17(2) provides for adjournment on such a motion; the additional period cannot exceed two months.
Article 213.17(4) permits approval without meeting consent on special conditions. Secured claims must be repaid in full. Other registered creditors must receive substantially more than immediate property realisation and distribution of average monthly income over six months would yield, and at least 50% of their relevant claims. This does not authorise ignoring creditors: a documented comparison and compliance with the remaining requirements are necessary.
- 1. Identify the reason
Negative voting or a particular draft defect? - 2. Substantiate calculations
Income, expenses, lawful period and priority payments. - 3. Frame the request
Revision or substantiated approval under special rules. - 4. Obtain the court act
Check reasons, operative part and appeal procedure.
What to prepare before the hearing
Draft and attachments
The latest schedule, income and debt evidence, property details and statutory disclosures.
Voting records
The meeting decision, procedural evidence, vote calculation and participants’ specific objections.
Supporting the request
Corrections, feasibility calculation, payment evidence and, where relevant, comparison with asset realisation.
Explain which objection you dispute and the evidence supporting your answer. For revision, identify concrete changes and preparation time. Do not present a conditional future property sale as money already received.
What does judicial refusal mean?
Article 213.17(3) provides for refusal, a bankruptcy declaration and asset realisation. Paragraph 32 of Plenum Resolution No. 45 allows refusal to be stated in a separate order or in the bankruptcy judgment. Read the complete final act rather than one line in the case record.
Article 213.17 court acts may be appealed. Identify the disputed reasoning, evidence already in the case and the deadline applicable to that particular act. Refusal does not mean immediate discharge; that issue belongs to a later stage under separate rules.
The general procedure is described in the restructuring guide. An already approved plan has separate amendment and cancellation rules. Successful performance leads to consideration of restructuring completion.
Frequently asked questions
Must the court approve a plan approved by creditors?
The court checks statutory requirements and Article 213.18 grounds. Meeting approval does not cure unlawful terms or manifest infeasibility.
Does meeting rejection immediately lead to realisation?
Not necessarily. Revision on a motion and special approval under Article 213.17(4) are available where their conditions are met.
Are two months for revision automatic?
A participant’s motion is needed in the Article 213.17(2) situation. Two months is the maximum additional period, not a fixed postponement for every draft.
Can the plan leave the family below the subsistence minimum?
Paragraph 31 of Plenum Resolution No. 45 does not permit such a plan and requires consideration of dependants’ and minors’ rights.
Can refusal be appealed?
Yes. Article 213.17 permits appeal of its court acts. Check the particular decision’s deadline and procedure.
Legal sources
- Law No. 127-FZ, Article 213.18: refusal grounds.
- Article 213.17: court review, revision and appeal.
- Article 213.14: plan period and contents.
- Supreme Court Plenum Resolution No. 45: paragraphs 31–32.
- Official publication of Resolution No. 45 on the Supreme Court website.
Review the refusal grounds and draft
Prepare the plan, voting records, objections and budget calculation. A consultation can identify defects requiring correction and arguments requiring evidence.
Discuss the draft plan →