Russia and Ukraine war cited as reason partners in food distribution businesses have fallen out

ireland
Russia And Ukraine War Cited As Reason Partners In Food Distribution Businesses Have Fallen Out
The court heard that Alexandr Vakiy and Max Bulgakov had been partners, directors and shareholders in Dublin registered Maxala Limited.
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High Court Reporters

The High Court has heard that the outbreak of war between Russia and Ukraine two years ago is one of the reasons why the partners of a businesses that imports and sells eastern European food products in Ireland have fallen out.

The court heard that Alexandr Vakiy and Max Bulgakov had been partners, directors and shareholders in Dublin registered Maxala Limited, which imports and distributes Eastern European food and EastDeli Limited, which is involved in the retail of said products.

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On Friday Mr Justice Mark Sanfey was told by Bernard Dunleavy SC, appearing with Naill Ó hUiginn Bl for Mr Vakiy said that the business had been successfully run by his client a Ukranian and Mr Bulgakov, an ethnic-Russian, for several years.

Counsel said that in recent times differences had emerged between the two and the war between Ukraine and Russia had led to apparently irreconcilable differences between the two parties.

Mr Dunleavy said that his client has taken proceedings under the 2014 Companies Act where his client alleges that he has been oppressed as a shareholder of the companies by the respondent.

The alleged acts include a refusal by the respondent to sign Maxala's annual return for the year ending 2022, which it is claimed could damage that company.

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It is also alleged that in 2021 the respondent blocked Mr Vakiy's access to Maxala's bank accounts while the plaintiff was in Ukraine.

It is also claimed that Mr Bulgakov stopped attending for work and ceased participating at board meetings.

The respondent has denied any wrongdoing in those proceedings which are pending before the High Court.

On Friday, counsel said that it was hoped that alleged acts of oppression, which also include claims that unauthorised payments have been out of the companies accounts to third parties, would cease pending the determination of the proceedings.

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Counsel said that his client is seeking further orders after a recent discovery that monies had been transferred out of one of the businesses' bank accounts without any prior notice.

Counsel said that his client had also been unable to obtain access to aspects of the businesses' online platforms that would allow the firms to participate in the government's Deposit Return Scheme recycling initiative.

As a result, Mr Vakiy seeks further orders against Mr Bulgakov, including injunctions restraining him from transferring monies from the business's bank accounts without 72 hours prior notice and an invoice to substantiate such a transfer.

The plaintiff also seeks an order directing Mr Bulgakov to provide login credentials and passwords to allow Mr Vakiy fully operate the businesses' digital platforms.

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He claims that he has been blocked from accessing critical aspects of the business's software by Mr Oleg Schnell and his company Schnelll Systems GmbH, who he alleges is Mr Bulgakov's associate.

If necessary, Mr Vakiy seeks to join Mr Schnell, and his company, as respondents to the action.

The judge granted the plaintiff permission, on an ex-parte basis, to serve short notice of injunction application on the respondent.

The matter will return before court next week.

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