This was a claim by GEYM SAS (the claimant) against the insolvent estate of Agro Invest CJSC (the defendant) for USD 1,707,461 plus RUB 4,429,664.92 interest. The claimant and the defendant had entered into a CIF sale agreement. The claimant had supplied the goods. The defendant did not pay the full price. The difference between the full price and the sum paid was claimed. The claimant provided the Court with a bill of lading as evidence that the goods were delivered to the defendant properly.

The Court of first instance found in favour of the claimant. The Court of Appeal, supported by the Court of cassation, revised the judgment of the Court of first instance. It held that the claimant did not prove that it supplied the goods in dispute. The claimant submitted a cassation appeal to the Supreme Court of Russia.

Held: The judgments of the lower Courts are revised. The case is sent back to the Court of first instance for reconsideration.

The Supreme Court found that, under the CIF sales contract, the goods are considered to be properly delivered to the buyer as soon as they are accepted by the carrier. Under arts 117 and 142 of the Merchant Shipping Code of Russia, the bill of lading confirms the formation and content of the carriage contract. The bill of lading was issued by the carrier. According to art 3.4 of the Hague-Visby Rules, the bill of lading creates a presumption that the carrier received and accepted the goods for carriage as described.

Interpreting the relevant provisions, the Supreme Court found that the bill of lading has three main functions: it confirms the conclusion of a contract of carriage of goods by sea; it evidences acceptance of the cargo by the carrier; and from the time of loading of the cargo, it gives a right to dispose of the goods.

The bill of lading is sufficient evidence of the fact that the goods were loaded onto the vessel. Thus, if the bill of lading was issued, the goods are considered to be properly delivered to the buyer under the CIF contract.