Background
Part 4 of the Civil Procedure Code (8116/1996) provides the framework for the execution process. The execution process involves the issuance of an enforcement order by the court, which is implemented by the bailiff officer at the request of the creditor or the attorney.
Delays and discrepancies in the execution process have been identified and attributed to the work conducted by the Bailiff's Office. The Ministry of Justice has thus proposed to amend the code in order to make the entire process more efficient, while conforming to the procedural requirements.
Main Amendments
Time limits
Time limits for the issuance of interim injunctions by the court and appeals against the bailiff's actions will be implemented to avoid delays in the execution process.
The amended Article 202 of the code introduces a five-day time limit for the issuance of interim injunctions. This amendment aims to:
- accelerate the interim injunction procedure;
- prevent the property at issue from being altered;
and achieve a full and proper execution of the court decision;
The amended Article 610 of the code introduces a 20-day time limit within which the court must process appeals against the bailiff's actions. The amended Article 515 provides for a three-day time limit (from the day of the request) for the execution of the enforcement title. Article 564 of the code introduces a 15-day time limit within which the bailiff officer must perform the valuation of the property.
Debtors' addresses
The inability to obtain full and proper addresses for debtors is a major obstacle for bailiff officers seeking to enforce execution procedures. In order to avoid such situations, the amended Article 522 of the code states that if the address of the debtor is unknown (even after notice has been given), the bailiff officer must serve notice to the court. If the debtor cannot be traced and the court decides to end the case, a copy of the relevant decision must be displayed on the court's premises and at the debtor's previous address. If the debtor cannot be found within 30 days of the decision, an execution procedure will be initiated.
Third auction
Another amendment is the introduction of a third auction in the property sale process. Article 577 of the code provides that if the property fails to sell at the first auction, the bailiff officer has the right to put the property up for auction a second time at 50% of the price. If the property fails to sell at the second auction, the property is transferred to the creditor. However, the amendment will introduce a third auction: if the creditor refuses to take possession, the property will be put up for auction at 30% of the initial price within three months of the second auction. One drawback is that the price of the property may be higher at the third auction than at the second auction. The draft law will also introduce a third auction for the sale of movable properties (Article 557 of the code). There is no initial price for the sale of movable properties, which may compromise the usefulness of the two previous auctions as potential buyers may buy the property at the third auction at a lower price.
Debtor's property
Section 553 of the code will be amended by abolishing the provisions on the procedure for the resale of movable property in retail shops. Article 602 of the code, which concerns the possession of immovable property by the bailiff officer, will also be amended. The amendment provides that the bailiff officer may demand that possession of the immovable property be transferred to the creditor if the debtor fails to leave the property within a time limit set by the bailiff officer. Article 602, Paragraph 2 establishes the procedure for removing and storing the debtor's movable property. However, the provision does not specify which type of property it refers to (ie, the movable property situated inside the immovable property transferred to the creditor). Therefore, in order to leave no room for interpretation, it would be necessary to include a definition of 'movable property' in Paragraph 2.
Refusal to execute an enforcement title
Article 609(1) has been incorporated into Article 609, which provides that the bailiff officer may refuse to execute an enforcement title. Pursuant to Article 609(d), the bailiff officer may refuse to enforce the executive title if new legal facts obstructing the execution procedure are introduced. Arguably, the facts should be assessed by the court, not by the bailiff officer. Otherwise, Article 609(1)(d) runs the risk of contradicting Article 609, which establishes the cases where (i) the debtor may seek a declaration that the executive title is invalid due to the introduction of new facts, or (ii) the court must rule on the facts.
Comment
These amendments, as well other amendments to the mandatory obligations under the executive title, will help to overcome the obstacles encountered by judicial practice.
For further information please contact Gerhard Velaj at Boga & Associates by telephone (+355 42 51 050) or by fax (+355 42 51 055) or by email (gerhard@bogalaw.com).
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