Enforcement against the buyer of the enterprise and the farm

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Enforcement against a buyer - what is it?

In order to improve the situation of creditors in the event of enforcement against a dishonest debtor, the Polish civil procedure introduced the possibility of settling claims in the event of the sale of an enterprise or farm by the debtor. When analyzing such a situation, one should ask what steps should be taken when my debtor has sold the agricultural enterprise and no longer has any assets? Well, in such a situation, in Art. 7892 of the Code of Civil Procedure, it is possible to initiate enforcement proceedings against the buyer of an enterprise or farm. If we have an enforceable title issued to our current debtor, it is the legal basis for carrying out such an action as enforcement against the buyer of the debtor's property. It is worth mentioning that the provision of Art. 7892 of the Code of Civil Procedure. also applies when the acquisition of an enterprise or farm took place through its transfer to a company, merger, division, privatization or transformation. The described situation applies when we have an enforceable title against the seller of the enterprise or farm, but the enforcement proceedings have not yet started. In the event that our debtor has sold his aforementioned property while the proceedings are pending, Art. 8191 of the Code of Civil Procedure and in accordance with it: the sale of a farm or enterprise after the initiation of enforcement proceedings will not affect the course of the initiated proceedings. In other words, the procedure will continue without having to file a fraudulent complaint against the buyer.

Enforcement against the buyer - deadline for submitting the application

Unfortunately, in such a case, the legislator provided for a very short deadline for submitting such an application and it is only 1 month from the sale of the enterprise or farm. This deadline is a strict deadline, i.e. it is not possible to reinstate it and after it expires, the creditor's entitlement expires.

Enforcement against the buyer - enterprise

For the definition of an enterprise, we must refer to Art. 551 of the Civil Code. To put it simply, an enterprise is an organized set of tangible and intangible assets intended for running a business. In addition, the legislator lists what should be part of the enterprise, and thus:

1) the name of the enterprise, i.e. the designation individualising the enterprise or its separate parts,

2) ownership of real estate or movable property, including equipment, materials, goods and products, and other rights in rem to real estate or movable property;

3) rights arising from rental and lease agreements for real estate or movable property and the right to use real estate or movable property arising from other legal relationships;

4) claims, rights in securities and cash;

5) concessions, licenses and permits;

6) patents and other industrial property rights;

7) proprietary copyrights and property related rights;

8) business secrets;

9) books and documents related to running a business.

Enforcement against the buyer - a farm

Under Art. 553 of the Civil Code. an agricultural holding is considered to be agricultural land together with forest land, buildings or their parts, equipment and livestock, if they constitute or may constitute an organized economic unit, and rights related to running a farm.