July 2022

Interim Order of the Lamia Court of First Instance suspending the enforceability of a payment order of approximately EUR 550.000

On 26.7.2022, a temporary injunction was issued prohibiting a company managing receivables from loans and credits from executing a payment order issued against our client company, for an amount of approximately 550,000 euros.

Crucial was the fact that a few months earlier the main appeal had been discussed and the decision was pending, while at the same time the management company was fully secured, having registered mortgage liens on properties of the debtor and the guarantors. 

Since the lodging and discussion of an opposition to annul a payment order does not prevent the bank/management company from proceeding with enforcement, the debtor can only protect himself by applying for a stay of execution and, in very urgent cases, by applying for a temporary injunction. 

The main reason raised in our application was also the incorrect mention of the cause in the issued payment order, as the conversion of the credit agreement with a mutual account into an interest-bearing loan, i.e. a loan with a specific term, due date for payment of instalments and repayable in instalments, had been mediated. The interest-bearing loan agreement was drawn up informally, without the signing of a contractual document. The bank, however, did not rely on the above-mentioned interest-bearing loan agreement in its application for the payment order.  

Similarly important was the reason relating to the improper use of the termination by the bank, as the bank, despite having initiated the procedure under the Code of Conduct for Banks, never completed it, while the borrower's request was rejected unilaterally, without any documentation and without any counter-proposal. 

(for more see here)