Article 63. Invalidity of Transactions Concluded By Debtor

Any transaction entered into by the debtor, including prior to the initiation of insolvency proceedings or the introduction of external management or judicial rehabilitation procedures, may be declared invalid by the court upon the application of the judicial manager on the grounds provided for by legislation.

Transactions shall be invalidated on the grounds specified in Articles 115 — 126 of the Civil Code of the Republic of Uzbekistan and provided for by this Law, if they were concluded by the debtor or their representative within three years before the initiation of an insolvency case, unless otherwise provided by this Law.

The following transactions concluded before the initiation of insolvency proceedings, in addition to the grounds provided for in part two of this Article, may be declared invalid:

low-value transactions entered into by the debtor, including transactions entered into by exchanging their goods for similar goods or donating them;

transaction, the price and (or) other conditions of which significantly worsen the position of the debtor in comparison with a transaction concluded in a similar way, and if this transaction has led to financial losses;

transaction on the transfer of property on a gratuitous or paid basis (including for temporary use) at a price different from the price for similar or the same property, and significantly worsening the condition of the debtor, even if the interests of creditors are not infringed;

transaction leading to preferential satisfaction of the claims of one creditor over others;

donation agreements of the debtor's property, with the exception of those concluded in permanent commercial transactions, if they differ significantly from agreements concluded a year before the initiation of insolvency proceedings.

A transaction entered into by a debtor which is a legal entity after the initiation of an insolvency case or within thirty-six months preceding the filing of an application for initiation of an insolvency case, related to the payment (allocation) of a share in the property to a participant in the debtor in connection with their withdrawal from the list of participants in the debtor, may be declared invalid by the court and the consequences of the invalidity of the transaction may be applied upon the judicial managerʼs or creditor's application, and all property (monetary funds) received under such a transaction shall be returned to the debtor. In this case, the participant shall be recognized as a creditor of the fourth turn in accordance with Article 150 of this Law.