The time limit for requesting declaration of an action detrimental to the creditor as ineffective – commentary– III CZP 99/15

Author: Joanna Kisielińska

After the declaration by the Court of an act in law of the debtor with a third party as ineffective because of the detriment to the creditor, the time limit for requesting the declaration of an act disposing a benefit between a third and fourth party as ineffective (Article 534 of the Civil Code) shall be counted from the date of its execution. Resolution of the Supreme Court of 28/01/2016, III CZP 99/15, Bulletin of the Supreme Court No. 1/2016

Introduction

The subject of the analysis of the Supreme Court and common courts of law in cases initiated by bringing an actio Pauliana is increasingly often a matter of legal instruments available to the creditor in a situation in which a third party makes a further disposes of a material benefit obtained by way of a fraudulent act. Pursuant to Article 531 § 2 of the Civil Code, the creditor may directly sue the person for whose benefit the disposition was made if that person knew the circumstances which justified the declaration of the debtor’s act as ineffective or if the disposition was gratuitous. Due to the fact that the regulation of Article 531 § 2 of the Civil Code is somewhat fragmented, and the provision does not contain the full text of the request made by the Pauliana creditor, in practice there appeared controversy related to the determination of the time limit in which the creditor is entitled to effectively bring action against a fourth party. Despite the legal and socio-economic importance of this issue, it has not yet been the subject of in-depth description in the case law. For this reason, the commented resolution resolving this issue undoubtedly deserves proper attention. It can also be the basis for the resolution of relevant issues related to bringing action under Article 531 § 2 of the Civil Code, which due to the content of the legal issue were not the subject of the Supreme Court’s deliberations.