Liquidation Petition 2026 SDIC 1
Liquidation Petition [2026] SDIC 1
| Date of judgment | 14th February 2026 |
| Judge | Judge Tech Support |
| Grounds | Liquidation Petition per Article 3 §2.2 of the SimDem State Bank Act 2025 |
| Verdict | Defendants found liable for liquidation |
| Result | Defendant banks to be liquidated |
| Applicable persuasive precedent |
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SUMMARY JUDGMENT by Judge Tech Support
Facts of the case
[1] Plaintiff has petitioned the inferior court for the liquidation of several banks for not filing their banking licenses within the allotted time. The plaintiff’s requested remedy was for these banks to be liquidated by the court.
[2] On the 14th of January 2026, the banks Kaonz Bank, S&X Bank, Cat Bank, Hyperion Mutual Bank LLC, and Mypen-Rocky Bank were issued a notice to refile their bank licenses in line with a change of procedures. On the 18th of January, these banks were issued a 24 hours notice to apply for their licenses or that the courts would be petitioned to liquidate.
[3] The subsequent case was filed on the 24th of January. The court opted to adopt the Civil Trial procedures from the CPA in the interests of a fair trial and a speedy trial.
[4] On the 31st of January a PD was assigned to represent the defendants, and to respond to a motion for a summary judgement filed by the plaintiff on the 28th of January due to the inactivity of the defendants.
[5] The plaintiff’s motion for a summary judgement satisfied all three components of Article 18 §1 of the CPA. The defence objected on the grounds that a Prima Facie Case had not been made, that there was a question of law on the matter of notification.
[6] The Court rejected the objection by the defence, the plaintiff had proven a Prima Facie Case, including that the appropriate legislation in the SimDem State Bank Act 2025 satisfied that the bank had the authority to petition for liquidation. The plaintiff also asked for an application of the binding precedent set forward in Kingred, for the court to not apply narrow statutory doctrine when the outcome would be “absurd”. The court accepted this argument, the plaintiff proved that the Bank had the powers which were being argued over.
[7] The court agrees with the plaintiff that the Bank had provided ample opportunity for the banks to register a license, there was a ten day period between the updating of the regulations and the filing of the petition, in which time all the banks could’ve applied for their licenses. Alongside this, the law is clear that the Bank may petition the Court for liquidation. Article 3 §2.2 of the SimDem State Bank Act 2025 states that the Bank may:
§2.2. grant, suspend or suspend and take over temporarily, or revoke licences (and concurrently petition a court for their liquidation) of commercial banks for non-compliance with rules under this Act or for other reasons provided by law.
[8] Thus the court is satisfied that a summary judgement’s requirements had been fulfilled.
[9] The court did not proceed with mitigating and aggravating factors as it was not applicable to the petition.
Considerations
[10] In the subsequent costs hearing, both parties requested 0 tau in costs.
[11] The plaintiff requests that the court allows for the liquidation of the previously listed banks, in line with a summary judgement in favour of the plaintiff, this request is accepted.
Verdict
[12] Kaonz Bank, S&X Bank, Cat Bank, Hyperion Mutual Bank LLC, and Mypen-Rocky Bank are found liable to liquidation.
Remedy
[13] Kaonz Bank, S&X Bank, Cat Bank, Hyperion Mutual Bank LLC, and Mypen-Rocky Bank are to be liquidated.
[14] The Department of Treasury is authorized to execute this judgment against Kaonz Bank, S&X Bank, Cat Bank, Hyperion Mutual Bank LLC, and Mypen-Rocky Bank.