1. A voidable transaction is valid until the entry into force of court decision to declare such transaction invalid.

2. A court decision to declare a transaction invalid without ordering restitution does not require its enforcement through state executors.

The facts of the case

The claimant filed a claim against the respondent to invalidate the contract dated 23 June 2015.

The cliamant also submitted an application to secure the claim, by which the claimant requested to seize the funds and property of the company’s representative office (defendant) in Tashkent.

The court of first instance  with its ruling of 28 October 2022 denied the claimant’s application to secure the claim. The claimant appealed.

The Supreme Court’s position

According to Art 127 CC a transaction declared invalid shall be deemed invalid from the moment of its execution. If it follows from the content of the transaction that it can only be cancelled prospectively, the validity of the transaction declared invalid shall be terminated for the future time.

It follows from the essence of Art 127 CC that a court decision to declare a transaction invalid does not require its enforcement (unless a claim for application of the [consequences of] invalidity of the transaction is made), as the transaction is deemed invalid once the court decision enters into force. Consequently, in this case, the failure to take measures to secure the claim cannot complicate or make it impossible to enforce the judicial act.

It follows from the above that the court of first instance correctly applied the rules of procedural law when making the rulling on the application to secure the claim, in connection with which there are no grounds for its cancellation.