BJNI’S AUCTION WAS ORGANIZED IN VIOLATION OF LAW, DIRECTOR OF PLANT CLAIMS

Noyan Tapan
Feb 16, 2009

YEREVAN, FEBRUARY 16, NOYAN TAPAN. In connection with the end of the
compulsory electronic re-auction of the property and property rights of
"Bjni" Mineral Water Plant CJSC on February 16, the director general of
the company L. Harutyunian made a statement on the same day, reminding
that the company has repeatedly said that the auction process has been
organized in violation of the law. Besides, several cases related to
the company are now in the RA Administrative Court.

The directorship of "Bjni" warns the possible buyer of the company’s
roperty to refrain from paying within 3 days as "otherwise this buyer
will have to return the company’s property to the company juridically
in the future and indemnify the company for its losses".

"We deem it necessary to warn the person purchasing the company’s
property about the legal consequences:

1. The auction may be declared invalid if it was organized and held
in violation of the law (we remind that the enforcement procedure
was to be suspended as the lot’s price was lower than the demand,
the compulsory enforcer did not take into account VAT to be paid
(which made 20%, and 16.67% of the total amount).

2. The events related to the company are well-known, and every
potential buyer was informed about the violations cited by the company.

3. Under Article 275 of the RA Civil Code, a property can be demanded
back even from a good faith purchaser (we have all reasons to claim
that the given purchaser is not a good faith one), if the owner left
the possession of property against his (her) will. We have always
been against the alienation of the company’s property.

4. The purchaser will have a problem with use of trade marks," is
said in L. Harutyunian’s statement.