Judgment of the District Commercial Court in Bijeljina Confirmed – IRBRS Loan Agreement with Energolinija Null and Void

On 28 June 2021, the High Commercial Court in Banjaluka passed a second-instance judgment confirming the judgment of the District Commercial Court in Bijeljina from December last year, annulling the loan agreement worth almost EUR 10 million that The Republic of Srpska Investment and Development Bank (IRBRS) granted to the company “Energolinija” back in 2012.

As stated in the High Commercial Court’s judgment, the first-instance court correctly determined that the disputed Loan Agreement is contrary to coercive regulations, which required such an agreement to be concluded through a commercial bank as a financial intermediary. Also, the Court points out that the loan agreement was concluded with a borrower who did not meet the conditions for obtaining a loan, which makes it an agreement without legal effect, and therefore the first-instance court acted correctly when it fully accepted the plaintiff’s claim.

The High Commercial Court in Banjaluka specifically states that “in this particular case, it is a matter of intentional, dishonest and unscrupulous conduct of the IRBRS”, which resulted in the conclusion of a null and void legal transaction.

Since the Zvornik company “Alumina”, as the guarantor for this loan, has paid almost 3 million EUR so far, the IRBRS has been ordered to reimburse this amount to “Alumina”.

In this dispute “Alumina” was represented by Vladimir Milošević, Attorney-at-Law and Partner at Milosevic Law Firm.

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