Bankruptcy Law

The bankruptcy judge may, if the nature of the assets, their location or the bids received are such as to enable an amicable transfer under better conditions than an auction sale, order a sale by amicable adjudication at a fixed price .
In addition to the information mentioned in Article R. 642-22 of the Commercial Code, the order ordering the sale by amicable auction includes a description of eac …

Sale by amicable auction

The bankruptcy judge may, if the nature of the assets, their location or the bids received are such as to enable an amicable transfer under better conditions than an auction sale, order a sale by amicable adjudication at a fixed price .

In addition to the information mentioned in Article R. 642-22 of the Commercial Code, the order ordering the sale by amicable auction includes a description of each of the assets or rights to which the seizure relates, as required by the rules governing land publicity , and designates the notary who will carry out the auction . The notary must inform the registered creditors listed on the statement issued after publication of the ordinance, by registered letter with acknowledgement of receipt, that they are required to read the specifications and enter their comments and observations . By the same letter, he must summon the creditors to the sale at least one month in advance .

Prior to the opening of the auction, the notary reminds everyone that bids will be based on the reserve price set in accordance with Article R. 642-22 . The following persons may not bid, either themselves or through intermediaries: the distrainee debtor, legal auxiliaries who have intervened in any capacity whatsoever in the procedure, or magistrates of the court before which the sale is being conducted . Certain provisions of the Code of Civil Enforcement Procedures (Code des procédures civiles d'exécution) apply to the amicable auction procedure .

In the event of an amicable auction, an outbidding is always possible . Indeed, according to Article R. 642-33(1) of the Commercial Code, within fifteen days of the auction, any person may make an overbid of the tenth by petition delivered or addressed to the court registry of the enforcement judge of the judicial court in whose jurisdiction the notary who carried out the sale resides. The overbidding period starts on the day the provisional auction is declared final by the court, without it being possible to postpone the starting date of the overbidding period to the expiry of the appeal period against the bankruptcy judge's ordinance, since the overbidding is an autonomous procedure .

The deed of sale consists of a copy of the conditions of sale bearing the executory formula, followed by a transcript of the auction report drawn up by the notary . In accordance with Article L. 322-9 of the Code of Civil Enforcement Procedures, the successful bidder pays the price into an escrow account or deposits it with the Deposit and Consignment Office, and pays the costs of the sale. He may not, before the payment or deposit and payment, perform any act of disposal on the property, with the exception of the constitution of a mortgage accessory to a loan contract intended to finance the acquisition of this property. The constant practice among merchants, according to which prices are exclusive of tax unless otherwise agreed, does not apply to the sale by amicable auction of the land of a non-trading real estate company (société civile immobilière) in the context of its judicial liquidation .

Cass. com., 21 March 2018, LawLex202300002629JBJ (LJ).

CA Grenoble, 30 June 1992, LawLex202300005823JBJ (LJ).

Bankruptcy Law

913. Sale by amicable auction

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913. Sale by amicable auction

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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