GOVERNMENT OF THE REPUBLIC OF ARMENIA

DECISION

No 914-N of 23 July 2009

Pursuant to part 2 of Article 1086 of the Civil Code of the Republic of Armenia and paragraph 2 of part 2 of Article 82 of the Law of the Republic of Armenia “On bankruptcy”, the Government of the Republic of Armenia decides to:

1. Approve the procedure for capitalisation of relevant payments and paying them to the injured person in case of liquidation or declaration of insolvency of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, in accordance with the Annex.

2. This Decision shall enter into force on the tenth day following its official promulgation.

1. This Procedure shall establish:

(1) the procedure for calculation and capitalisation of amounts required for satisfaction of claims provided in accordance with Article 70 of the Civil Code of the Republic of Armenia in the second order, as well as that for paying them to the injured person, in case of liquidation of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health:

(2) the procedure for capitalisation of amounts required for satisfaction of claims provided for by point “b” of part 1 of Article 82 of the Law of the Republic of Armenia “On bankruptcy”, as well as that for paying them to the injured person, in case of declaration of insolvency of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health.

2. The amounts required for satisfaction of claims provided in accordance with Article 70 of the Civil Code of the Republic of Armenia in the second order in case of liquidation of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health (hereinafter referred to as “amounts”) shall be, in accordance with the requirements of this procedure, calculated and capitalised by the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health.

3. During satisfaction of claims — in accordance with Article 70 of the Civil Code of the Republic of Armenia — of creditors of a legal person, when the turn of satisfaction of claims for damage caused to life or health (second order) comes, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall draw up and approve the list of citizens to which the legal person to be liquidated is liable for causing damage to their life or health.

4. The list to be drawn up in accordance with point 3 of this Procedure shall specify the citizen’s surname, name, father’s name, place of residence and (or) record-registration, social card number, where available, the amount regularly paid by the given legal person to the citizen as compensation for the damage and the terms thereof, and the bank account of the citizen, where available.

5. After drawing up and approving the list provided for by points 3 and 4 of this Procedure, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall calculate the amounts in accordance with point 6 of this Procedure.

6. The amounts shall be calculated until the citizen attains the age of 70, but for at least 10 years. Where the citizen is over 70 years old, the period of capitalisation of payments shall be 10 years. The sums of expenses required for fulfilment of all those obligations of the legal person declared, in a prescribed manner, as liable for the damage caused to life or health shall be included in the sum calculated, for the fulfilment of which the given legal person is declared as liable.

7. In the event of an increase in the cost of living after state registration of liquidation of the given legal person, the amount of calculated sums shall not be subject to recalculation and (or) indexation in the manner prescribed by law.

8. In the event of an increase in the cost of living during the ongoing process of liquidation of the given legal person, the amount of calculated sums shall be subject to recalculation and/or indexation in the manner prescribed by law.

9. Where in the process of liquidation of the given legal person, after satisfaction of the claims for damage caused to life or health provided in accordance with the requirements of Article 70 of the Civil Code of the Republic of Armenia in the second order, the cost of living increases, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, should recalculate and (or) index the amounts calculated in accordance with this procedure in the manner prescribed by law and take measures for fulfilling the new obligations with regard to the damage caused to life or health, emerged for the legal person as a result of recalculation and (or) indexation in the manner prescribed by law (return, again, to the satisfaction of claims provided in accordance with Article 70 of the Civil Code of the Republic of Armenia in the second order), and only after their fulfilment proceed to the satisfaction of the claims provided in the other orders of priority of Article 70 of the Civil Code of the Republic of Armenia.

10. After calculating the amounts in accordance with point 6 of this Procedure, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall inform the given citizen — by a registered letter or a letter to be delivered to the citizen in hand (with the signature of the recipient) — about the sum of the calculated amount, offering to pay him/her the calculated amount in the form of regular payments or in a lump sum, and to submit an offer about it within the time period specified in the letter, but not sooner than ten days, and not later than one month.

11. Upon receipt of the offer of the citizen on receiving the calculated amount in a lump sum within the time period specified, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall pay the sum to the citizen in a lump sum within three working days after receiving the offer of the citizen, transferring it to the latter's bank account (where available) or through a check issued for receiving the appropriate amount of money from the bank account of the given legal person.

12. Upon receipt of the offer of the citizen on receiving the calculated amount in a lump sum within the time period specified, where the funds of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, are not sufficient to pay the calculated amount to the citizen in a lump sum, upon the agreement reached by the parties on the basis of the offer of the Liquidation Committee (Liquidator) and/or the citizen, the amount can be paid to the citizen in property at its estimated value (including value added tax), and the value added tax arising from it shall be credited to the obligations for mandatory payments made to the budget of the Republic of Armenia provided for by Article 70 of the Civil Code of the Republic of Armenia in the fourth order. Pursuant to this point, the amounts owed both to one citizen and to several citizens can be paid in property, in case of which the property shall be delivered to the citizens under common (joint or shared) ownership rights.

13. In case of failure to receive the offer of the citizen on receiving the calculated amount in a lump sum within the time period specified or upon receipt of the offer of the citizen on receiving the calculated amount in the form of regular payments within the time period specified, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall capitalise the amount owed to the citizen, transferring it to the sub-account in the name of the legal person to be liquidated, of the off-budget account number in the name of the Ministry of Labour and Social Affairs of the Republic of Armenia, opened in the relevant local treasury department of the Ministry of Finance of the Republic of Armenia for this purpose.

14. Where the funds of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, are not sufficient to pay the calculated amounts to the citizens in full or capitalise them in accordance with the requirements of this Procedure, the Liquidation Committee (Liquidator) of a legal person shall distribute the available funds subject to satisfaction in proportion to the amounts of claims for the damage caused to life or health.

15. After capitalising the amount owed to the citizen in accordance with point 13 of this Procedure, the Liquidation Committee (Liquidator) of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall present — within two working days — information on the capitalised amounts to the Ministry of Labour and Social Affairs of the Republic of Armenia, stating the total sum of the capitalised amount, surname, name, father’s name, place of residence and (or) record-registration of the citizen entitled to receive regular payments, social card number, where available, the amount regularly paid to the citizen as compensation for the damage and the terms thereof, and the bank account of the citizen, where available.

16. Payment of capitalised amounts according to the information specified in point 15 of this Procedure shall be organised by the State Social Security Service under the Ministry of Labour and Social Affairs of the Republic of Armenia, on a monthly basis, to the bank account specified in the application of the citizen entitled to receive regular payments.

17. In case of declaring a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, the amounts required for satisfaction of claims provided for by point “b” of part 1 of Article 82 of the Law of the Republic of Armenia “On bankruptcy”, shall be — in accordance with the requirements of this Procedure — calculated and capitalised for the damage caused to life or health by the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable.

18. During satisfaction of claims, in accordance with the requirements of the Law of the Republic of Armenia “On bankruptcy” — of creditors of a legal person, when the turn of satisfaction of claims for damage caused to life or health comes, the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall draw up and approve the list of citizens to which the legal person declared as bankrupt is liable for causing damage to their life or health.

19. The list to be drawn up in accordance with point 18 of this Procedure shall specify the citizen’s surname, name, father’s name, place of residence and (or) record-registration, social card number, where available, the amount regularly paid by the given legal person to the citizen as compensation for the damage and the terms thereof, and the bank account of the citizen, where available.

20. After drawing up and approving the list provided for by points 18 and 19 of this Procedure, the bankruptcy administrator of the legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall calculate the amounts in accordance with the requirements of part 2 of Article 82 of the Law of the Republic of Armenia “On bankruptcy”, including therein the sums of expenses required for fulfilment of all those obligations of the legal person declared, in a prescribed manner, as liable for the damage caused to life or health, for the fulfilment of which the given legal person is declared as liable.

21. In the event of an increase in the cost of living after termination of the bankruptcy case of the given legal person through the liquidation of the debtor (state registration of liquidation), the amount of calculated sums shall not be subject to recalculation and (or) indexation in the manner prescribed by law.

22. In the event of an increase in the cost of living during the ongoing process of bankruptcy of the given legal person, the amount of calculated sums shall be subject to recalculation and (or) indexation in the manner prescribed by law.

23. Where in the process of bankruptcy of the given legal person, after satisfaction of the claims for damage caused to life or health in accordance with the requirements of the Law of the Republic of Armenia “On bankruptcy”, the cost of living increases, the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, should recalculate and (or) index the amounts calculated in accordance with this procedure in the manner prescribed by law and take measures for fulfilling the new obligations with regard to the damage caused to life or health emerged for the legal person as a result of recalculation and (or) indexation in the manner prescribed by law (return, again, to the satisfaction of claims provided for by point “b” of part 1 of Article 82 of the Law of the Republic of Armenia “On bankruptcy”), and only after their fulfilment proceed to the satisfaction of the claims provided in other orders of priority of Article 82 of the Law of the Republic of Armenia “On bankruptcy”.

24. After calculating the amounts in accordance with point 20 of this Procedure, the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall inform the given citizen — by a registered letter or a letter to be delivered to the citizen in hand (with the signature of the recipient) — about the sum of the calculated amount, offering to pay him/her the calculated amount in the form of regular payments or in a lump sum, and to submit an offer about it within the time period specified in the letter, but not sooner than ten days, and not later than one month.

25. Upon receipt of the offer of the citizen on receiving the calculated amount in a lump sum within the time period specified, the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall pay the sum to the citizen in a lump sum within three working days after receiving the offer of the citizen, transferring it to the latter's bank account (where available) or through a check issued for receiving the appropriate amount of money from the bank account of the given legal person.

26. Upon receipt of the offer of the citizen on receiving the calculated amount in a lump sum within the time period specified, where the funds of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health are not sufficient to pay the calculated amount to the citizen in a lump sum, upon the agreement reached by the parties on the basis of the offer of the bankruptcy administrator and/or the citizen, the amount can be paid to the citizen in property at its estimated value (including value added tax), and the value added tax arising from it, shall be credited to current indirect tax liabilities related to the sale of the debtor's property provided in the order prescribed by point “e” of part 1 of Article 82 of the Law of the Republic of Armenia “On bankruptcy”. Pursuant to this point, the amounts owed both to one citizen and to several citizens can be paid in property, in case of which the property shall be delivered to the citizens under common (joint or shared) ownership rights.

27. In case of failure to receive the offer of the citizen on receiving the calculated amount in a lump sum within the time period specified or upon receipt of the offer of the citizen on receiving the calculated amount in the form of regular payments within the time period specified, the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall capitalise the amount owed to the citizen, transferring it to the sub-account in the name of the legal person being in the process of bankruptcy of the off-budget account number in the name of the Ministry of Labour and Social Affairs of the Republic of Armenia, opened in the relevant local treasury department of the Ministry of Finance of the Republic of Armenia for this purpose.

28. Where the funds of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, are not sufficient to pay the calculated amounts to the citizens in full or capitalise them in accordance with the requirements of this Procedure, the bankruptcy administrator of a legal person shall distribute the available funds subject to satisfaction in proportion to the amounts of claims for the damage caused to life or health.

29. After capitalising the amount owed to the citizen in accordance with point 27 of this Procedure, the bankruptcy administrator of a legal person declared, in a prescribed manner, as liable for the damage caused to life or health, shall present — within two working days — information on the capitalised amounts to the Ministry of Labour and Social Affairs of the Republic of Armenia, stating the total sum of the capitalised amount, surname, name, father’s name, place of residence and (or) record-registration of the citizen entitled to receive regular payments, social card number, where available, the amount regularly paid to the citizen as compensation for the damage and the terms thereof, and the bank account of the citizen, where available.

30. Payment of capitalised amounts according to the information specified in point 29 of this Procedure shall be organised by the State Social Security Service under the Ministry of Labour and Social Affairs of the Republic of Armenia, on a monthly basis, to the bank account specified in the application of the citizen entitled to receive regular payments.

Published on a joint site 06.06.2024