Bankruptcy Law

The court with jurisdiction to rule on an action for liability for insufficient assets is the one which opened or pronounced the judicial liquidation . An action for liability for insufficiency of assets, which is based on the existence of management faults attributable to the manager and is inseparable from the legal entity's insolvency procedure insofar as the portion of the company's liabilitie …

Court competent to hear insolvency proceedings

The court with jurisdiction to rule on an action for liability for insufficient assets is the one which opened or pronounced the judicial liquidation . An action for liability for insufficiency of assets, which is based on the existence of management faults attributable to the manager and is inseparable from the legal entity's insolvency procedure insofar as the portion of the company's liabilities borne by the manager is attributable to the offending acts, falls within the skill of the court which opened the insolvency procedure, even in the case of a manager of foreign nationality or domiciled abroad . Where the bankruptcy judge presided over the court ruling, the judgment condemning the manager to bear the deficiency must be set aside .

Cases may be referred to the court by writ of summons or in accordance with the procedure laid down in Article R. 631-4, concerning referral of cases to the court by the public prosecutor. In this case, the Public Prosecutor submits a request to the court, stating the facts on which the request is based. The president of the court, through the court registrar, summons the debtor by registered letter with acknowledgement of receipt to appear before the court within a set time-limit. This summons is accompanied by the Public Prosecutor's request.

Does the Commercial Court have jurisdiction when the manager in question is a public entity? According to the Court of Cassation, an action for payment of corporate debts against a public industrial and commercial establishment which does not perform a public administrative service is a matter for the courts . On the other hand, a département may not be held liable for faults it may have committed in the management of an association entrusted with an administrative mission of general interest, in the context of an action to make good a shortfall in assets brought before the court, but before the administrative courts . In the case of an action for payment of the debts of an association governed by the law of 1901 and managed by a municipality, jurisdiction cannot be conferred without establishing whether the municipality is the de jure or de facto manager, and whether the public service managed by the association is administrative or industrial and commercial . When an action for payment of corporate debts is brought against a commune , or against an intercommunal syndicate , in its capacity as de jure manager, and is based exclusively on misconduct in the management of a semi-public company, it involves a private law relationship, and is therefore subject to the jurisdiction of the courts.

Cass. com., 5 May 2004, LawLex202200009925JBJ (LJ).

CA Bastia, 2 October 2013, LawLex202300008533JBJ (LJ).

Cass. com., 6 February 2001, LawLex202300010448JBJ (LJ).

T. confl., 15 November 1999, LawLex202300010835JBJ (LJ).

Cass. 1re civ., 11 February 2003, LawLex202300010449JBJ (LJ).

Cass. com., 8 January 2002, LawLex202100001622JBJ (LJ).

Cass. com., 26 October 1999, LawLex202300010692JBJ (LJ).

Bankruptcy Law

989. Court competent to hear insolvency proceedings

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Les notions juridiques connexes

989. Court competent to hear insolvency proceedings

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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