January 2023

Judgment of the Athens Court of First Instance on the Suspension of Foreclosure Proceedings after the Auction

The judgment of the Athens Single Judge Court of First Instance No. 63/2023 was issued, which accepted our client's application for the suspension of his imminent expulsion from a property that was auctioned off. Specifically, after the auction had been held and without the acts of seizure and the cheque for execution having been challenged, our client filed a legal action against the auction's award report and the cheque for expulsion handed to him by the successful bidder. In other words, without having taken any defensive action up to that point, the debtor decided to defend himself after the auction had taken place and, in particular, at the stage where the foreclosure of his property was pending. He therefore applied for interim measures and was eventually granted such measures in the judgment. The main ground of appeal, the merits of which the court presumed to be well founded, relates to the same auction procedure and the formal requirements for its conduct.

The Court ordered the following: 'Suspends the enforcement proceedings against the applicants, which the defendant is pursuing against them pursuant to the .... Warrant for Performance of Property, below copy of the first (a) under no. .... executed copy of the first executory copy of the deed numbered .... Summary of Real Estate Award Report of the Athens Notary Public ..... which was served on them on .... until a final judgment is rendered on their .... filed ....objection against the defendant and provided that it is heard at the hearing ....'. This decision is important in order to demonstrate, on the one hand, the formality of the auction procedure, errors in which can lead to its annulment, and, on the other hand, the possibility for the debtor to challenge the auction itself, even if he has not yet taken any defensive action.

(For more on the opposition to the auction see here)