Incident disputes (in insolvency proceedings)
Incident disputes are litigation brought about by insolvency proceedings. The basic purpose of insolvency proceedings is to satisfy fairly the interests of all parties involved. On the one hand stand creditors who demand repayment of debts, on the other side stand the debtor and other persons after whom the issuance of property is demanded to satisfy these creditors.
Insolvency proceedings are a complex discipline, and procedural actions of the court often have irreversible consequences. Within this complex process, the need often arises to solve specific issues, which for their detail are dealt with outside the main branch of insolvency proceedings, where so-called incidental disputes in insolvency proceedings also arise. Insolvency law is particularly familiar with these incidental disputes
· disputes over the invalidity of acts or ineffectiveness of acts (counterparty actions),
· Disputes concerning the authenticity, amount or order of claims filed (opposition actions),
· disputes concerning the exclusion of things or property values from the property substance (excindation disputes),
· an action for the issuance of a property benefit from the performance of the function of a member of the statutory body that contributed to the bankruptcy of the corporation (action for replenishment of liabilities).
For incidental disputes, similar rules apply to other civil disputes, with some peculiarities:
· Incidental disputes are heard by regional courts, often directly by a judge appointed to hear the main branch of insolvency proceedings;
· incidental disputes are led on behalf of the debtor by the insolvency administrator (often represented by a lawyer);
· The insolvency administrator may also enter into a settlement. Unlike the normal procedure, the settlement must also be approved by the Creditors' Committee, which is the body representing the interests of creditors;
· Incidental disputes also usually have a different amount of the court fee that must be paid for the initiation of a dispute or the filing of an appeal.
Current cases
In the area of incidental disputes, we are currently dealing with the situation of (former) clients of Energeický holding Malina a.s. (insolvency proceedings sp. zn. MSPH 79 INS 7166/2023).
The insolvency administrator, Insolvenční byrå v.o.s., contends in the opposing actions that Malina unlawfully returned to some clients the advances already paid, thereby favouring these former clients over other creditors. Accordingly, the opposing action seeks the release of these advances into the property.
In our opinion, the claim is not nearly as unequivocal as it might seem, as we describe in more detail in our topicality
If you are dealing with a similar problem, do not hesitate to contact us. We will consult your case with you free of charge and collect effective defense options.