Bankruptcy Law

When a real estate seizure procedure initiated prior to the opening of safeguard, receivership or liquidation procedure has been suspended as a result of the latter, Article L. 642-18(2) of the Commercial Code provides that the liquidator may be subrogated to the rights of the seizing creditor in respect of acts carried out by the latter, which are deemed to have been carried out on behalf of the  …

Rules common to court-ordered sales by auction

When a real estate seizure procedure initiated prior to the opening of safeguard, receivership or liquidation procedure has been suspended as a result of the latter, Article L. 642-18(2) of the Commercial Code provides that the liquidator may be subrogated to the rights of the seizing creditor in respect of acts carried out by the latter, which are deemed to have been carried out on behalf of the liquidator, who proceeds with the sale of the real estate. The seizure of real estate may then resume at the stage at which it was suspended by the opening judgment.

The provisions of Article R. 311-9 of the Code of Civil Enforcement Procedures, which make the benefit of subrogation conditional on the creditor's negligence, do not apply to insolvency proceedings, since subrogation operates ipso jure by virtue of the ordinance of the bankruptcy judge. Consequently, the liquidator's request to be subrogated to the rights of a creditor who has instituted real estate seizure proceedings against the debtor cannot be rejected on the grounds that the creditor was not inactive or negligent, within the meaning of Article R. 311-9, since the bankruptcy judge's order, having become irrevocable, entails the liquidator's subrogation to the creditor's rights .

Article R. 642-24 of the Commercial Code stipulates that the bankruptcy judge, when authorizing the liquidator to resume a real estate seizure procedure suspended by a judicial liquidation judgment, is required to set, regardless of the stage at which the procedure was halted, the price to be paid, the methods of advertising and the procedures for inspecting the property . The order of the bankruptcy judge must, at the request of the liquidator, be mentioned in the margin of the copy of the summons published in the real estate register, and the creditor who initiated the real estate seizure procedure must hand over to the liquidator, against receipt, the documents relating to the proceedings. The creditor's procedural costs are reimbursed in the same order. Furthermore, the liquidator, authorized by an order of the bankruptcy judge to resume the real estate seizure procedure suspended by the opening of the insolvency procedure, is entitled to request the extension of the effects of the order for real estate seizure, since this order entails the liquidator's subrogation in the rights of the seizing creditor for the acts carried out by the latter . The resumption of the real estate seizure by the liquidator, authorized by a final order of the bankruptcy judge, paralyzes any request for judicial allocation of the mortgaged property presented by a mortgagee .

Cass. com., 18 January 2005, LawLex202300005410JBJ (LJ) ; Cass. 2e civ., 29 January 2004, LawLex202300005409JBJ (LJ).

Cass. com., 11 April 2018, LawLex202100001218JBJ (LJ).

Cass. 2e civ., 19 December 2002, LawLex202300005413JBJ (LJ).

Cass. com., 28 June 2017, LawLex202100001588JBJ (LJ).

Bankruptcy Law

910. Rules common to court-ordered sales by auction

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910. Rules common to court-ordered sales by auction

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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