The Supreme court of the Russian Federation: the condition of the contract on retention by the customer of security payment in case of default by the counterparty of its obligations
The court supported the conclusions of the courts of three instances on the dispute between the municipal customer and the individual entrepreneur, in which the counterparty challenged the actions of the customer to retain the security payment under the contract in full.
Thus, the Supreme court of the Russian Federation, in particular, notes that the courts when considering the claim for recovery of the security payment lawfully refused to satisfy the claim for invalidation of the contract clause, according to which the security of the contract is not refundable if the contract is terminated due to non-performance and (or) improper performance by the contractor of its obligations.
Also, the Court found no grounds for refuting the findings of the court of first instance on the absence of grounds for charging a fine in connection with the improper performance of the customer's obligations under the contract. The armed forces of the Russian Federation thus considered the possibility of deduction of security provided by the contract at its termination owing to non-performance by the contractor of obligations and circumstances of its termination unilaterally.
Thus, the Court refused to transfer the appeal to the individual entrepreneur for consideration in the court session of The judicial Board on economic disputes of the Supreme court.
Document: ruling of the Supreme Court of the Russian Federation No. 303-ES18-10793 of 26 July 2018