Banks ask the Supreme Court to ensure uniform judicial practice regarding the return of leasing payments

Independent Association of Banks of Ukraine (NABU) turned to to the Supreme Court with a request to ensure uniform judicial practice regarding the return of lease payments by the lessor after termination of the financial leasing contract.

We are talking about situations when, after terminating the contract, the lessee demands the return of the paid purchase price of the property, even in spite of existing contractual conditions that provide otherwise. NABU notes that the current practice of the Supreme Court is contradictory. Some decisions allow lessors to keep the already paid redemption value, others oblige them to return it.

The banking community emphasizes that such uncertainty undermines the principles of good faith and fairness, as well as the economic logic of leasing relations, where payments include not only depreciation, but also the lessor’s profit.

NABU insists that it is necessary to take into account the specifics of financial leasing and the principle of freedom of contract: if the agreement expressly provides for the right of the lessor to the redemption value, this should be taken into account. Also, the Law “On Financial Leasing” already provides that payments made before the date of termination of the contract are not subject to return (except in exceptional cases). The association calls on the Supreme Court to ensure consistency and predictability of judicial practice for all participants in the financial leasing market.