On 30 January 2019, the Supreme Court considered a question referred by the Warsaw Regional Court concerning bankruptcy proceedings involving natural persons not conducting business activity. The issue concerned the time limit for lodging an appeal against an order establishing a creditors’ repayment plan.
The Warsaw Regional Court asked the Supreme Court: “Does the time limit for a creditor to appeal against an order establishing the bankrupt debtor’s creditors’ repayment plan begin on the date the order is announced at a public hearing, or on the date it is served?”
In the case before the Regional Court, the District Court issued an order discharging the bankrupt debtor’s liabilities without establishing a repayment plan. One of the creditors, a housing community, requested written reasons for the decision and appealed it.
In the District Court’s view, however, the decision was already final on the day it was served on the creditor’s attorney. The creditor knew the reasons for the order because its attorney had attended the hearing in the District Court and heard the oral reasons. The creditor challenged that position and lodged an appeal against the order.
Creditors must pay attention to the fact that the time limit for filing a complaint runs from the date on which the judgment is delivered by the court, regardless of when the order is served on the party
After examining the appeal, the Warsaw Regional Court had doubts about how to calculate the time limit for appealing against the order described above and therefore referred the question quoted above to the Supreme Court.
Resolution in Composition 3 Judges dated 30 January 2019, reference no. III CZP 76/18 The Supreme Court stated that the time limit for bringing a complaint for the determination of a repayment plan for fallen creditors (Article 491[14] section 1 Act dated 28 February 2003 - Bankruptcy law, one text: Journal of Laws of 2017, item 2344 as amended), issued in open court, runs from the date of publication.
At this point it is worth noting that according to the draft Act amending the Act – Bankruptcy Law and some other laws on which the Sejm is currently working, Article 491(14) of the Bankruptcy Law, sections 2 and 3 is replaced by the following:
"2. An order to establish a repayment plan for creditors or to redeem a default without a repayment plan for creditors or a conditional remission without a repayment plan shall be announced. There is a complaint.
- The decision to establish a repayment plan for creditors or to redeem liabilities that have failed without establishing a repayment plan for creditors or conditional remission of liabilities without establishing a repayment plan for creditors shall mean the termination of the proceedings."
The resolution adopted by the Supreme Court is consistent with the planned wording of the provision and resolves interpretive doubts about calculating the time limit for appealing against orders discharging a bankrupt debtor’s liabilities without establishing a repayment plan, issued under Article 49114 of the Bankruptcy Law.
Creditors must therefore note that the time limit for lodging an appeal runs from the date the court announces the ruling, regardless of when the order is served on the party.
This is particularly important because Article 49114(2) of the Bankruptcy Law currently provides: “An order establishing a creditors’ repayment plan or discharging the bankrupt debtor’s liabilities without establishing a creditors’ repayment plan shall be served on the creditors.
An appeal lies against the order.” The provision thus concerns service of the order rather than its announcement, which may mislead parties wishing to appeal.
Author: Michał Wasilenko
Lawyer, Associate in the Legal Department, member of the Bar Association in Lublin, graduate of the Faculty of Law and Administration at Maria Curie-Skłodowska University in Lublin. He specializes in commercial and civil law law.