March 2024

Decision of the Multi-Member Court of First Instance of Athens on the Nullity of a Payment Order of Approximately 3.5 Million Euros

The decision No. 315/2024 of the Multi-Member Court of First Instance of Athens was issued, which accepted our claim regarding the nullity of the issued payment order due to the nullity of the loan termination notice. Specifically, the dispute involved a payment order of approximately 3.5 million euros resulting from the taking of an interest-bearing loan. The said loan was judged not to have been validly terminated as the due authorization was not given to the employees who signed the termination document. As a result, the alleged claim of the defendant was deemed not expired, and the payment order was canceled.

An interesting part of this decision is as follows: "However, the plaintiff, who also bears the burden of proving the validity of the termination, did not submit a document proving that valid authorization was given to the aforementioned for the termination of the loan agreement in question, whether they acted as substitutes of the Board of Directors or as third-party agents according to relevant authorization, nor did it prove any subsequent approval of the termination by the lawful representatives of the plaintiff. Moreover, the plaintiff, represented by its legal representative in court, did not declare that it approves the termination with a statement recorded in the minutes, while the mere presence of the plaintiff's attorney at the hearing of the case does not constitute valid approval of the contract's termination. Therefore, since the termination of the loan agreement in question occurred without the existence of authorization and was not approved subsequently, it was invalid, and the demand for which the contested payment order was issued was not expired and claimable (EfAth(Mon) 2768/2022)."