The Commercial Court of Appeal adopts legal position of TSG Law Office related to enforcement
– Our legal understanding, accepted by the Commercial Court of Appeal, is that the enforcement creditor who has acquired the pledge on the enforcement debtor`s claim against the bankruptcy debtor and to whom the attached claim was transferred for collection, is entitled to separate and complete settlement of his claim against the enforcement debtor (being the bankruptcy creditor) and not against the bankruptcy debtor. Namely, the enforcement creditor settles its claim from the value of the enforcement debtor`s (i.e. bankruptcy creditor`s) attached claim against the bankruptcy debtor, up to the full amount that the enforcement debtor (as the bankruptcy creditor) would have collected in the bankruptcy proceedings – TSG Law Office explains.
As said, the essence is that the enforcement creditor does not become a bankruptcy creditor, either instead of or jointly with the enforcement debtor, but rather the bankruptcy creditor remains the enforcement debtor, albeit with one important limitation – that there is a pledge on its claim in bankruptcy proceedings in favour of the enforcement creditor, and that the enforcement creditor shall collect its claim up to the full amount of the claim of the enforcement debtor, that the enforcement debtor itself, as the bankruptcy creditor, could have collected against the bankruptcy estate.
In this way, the TSG team, headed by Rajko Krejovic, Attorney at Law, changed the erroneous practice of the commercial courts` judges and bankruptcy administrators, which used to consider that, by means of attachment and transfer of claim for collection, there occurs a simple transfer of claim from the enforcement debtor (as bankruptcy creditor) to the enforcement creditor, whereby the enforcement creditor becomes the bankruptcy creditor and acquires the right to proportional settlement of claims together with the enforcement debtor and other bankruptcy creditors.
Most Important News
06.04.2024. | Agriculture
Preconditions for Placement of Fresh Blueberries and Dried Plums in Chinese Market Secured
16.04.2024. | News
Jovan Ciric, Leasing Director Retail MPC Properties – MPC Echo symbolizes our desire for good ideas and innovative endeavors to spread freely and bring about positive changes
16.04.2024. | News
10.04.2024. | Finance, IT, Telecommunications, Tourism, Sports, Culture
Creative Industry – What This Serbian Economy Sector Worth EUR 2 Billion Encompasses
10.04.2024. | Finance, IT, Telecommunications, Tourism, Sports, Culture
23.04.2024. | Construction, Transport
Tender for first section of Belgrade-Nis fast railroad from Velika Plana to Paracin announced
23.04.2024. | Construction, Transport
16.04.2024. | News
Economy Fair in Mostar opens – 26 companies from Serbia exhibiting
16.04.2024. | News
22.04.2024. | Industry, Transport
Serbia to develop project of “flying taxis” for EXPO with Airbus – Signing of memorandum announced
22.04.2024. | Industry, Transport