ELKB Insolvency: Supreme Court’s decision on the point of law regarding budgetary claims, November 2018
In the above-mentioned legal framework, the Supreme Court rendered the Decision no. 53 rendered on June 18, 2018, recently published in the Official Gazette on November 5, 2018, on the point of law (the ”Decision”).
To put things in context, we mention that the Supreme Court renders a Decision on the point of law in order to avoid an inconsistent interpretation of a certain essential legal provision susceptible of multiple interpretation, as an a priori control.
In this case, Cluj Court of Appeal asked the Supreme Court to render a Decision on the point of law regarding the extent of the judicial administrators/liquidators’ prerogative to analyse the budgetary claims comprised within enforceable titles in order to establish its historical or current legal nature within the insolvency procedure.
Determining the historical or current nature of a certain receivable in an insolvency procedure has serios long term implication given the fact that, according to the Insolvency Law:
- on one hand, the historical claims must be registered within the debtor’s table of creditors and its recovery shall be made in accordance to the payment schedule comprised within the reorganization plan in three to four years’ timeframe;
- on the other hand, the current claims are not registered within the debtor’s table of creditors; the current claims are paid during the insolvency procedure on the maturity date.