Bankruptcy Law

Under Article L. 661-1-I, 3° of the Commercial Code, decisions on the extension of a court-supervised liquidation procedure are subject to appeal or cassation. The merger of insolvency procedures, on the basis of the merger of assets and liabilities of the debtors concerned, leading to the existence of a single procedure, cannot be equated with a merger of proceedings and does not constitute a sim …

Remedy against the extension judgment

Under Article L. 661-1-I, 3° of the Commercial Code, decisions on the extension of a court-supervised liquidation procedure are subject to appeal or cassation. The merger of insolvency procedures, on the basis of the merger of assets and liabilities of the debtors concerned, leading to the existence of a single procedure, cannot be equated with a merger of proceedings and does not constitute a simple measure of legal administration that is not subject to appeal .

Pursuant to Article R. 661-6 of the Commercial Code, in the event of an appeal against a judgment ordering the extension of the procedure, legal representatives who are not appellants must be respondents. However, the debtor subject to the procedure whose extension has been ordered is entitled, by virtue of his own right, which is distinct from the rights exercised by the liquidator, to lodge an appeal against the extension judgment , even if the liquidator has not been summoned, since, due to the uniqueness of the procedure, he had already been summoned in his capacity as liquidator of the initial debtor . Furthermore, the manager of the company to which the procedure has been extended may lodge an appeal against the extension decision . On the other hand, the social and economic committee of the debtor to which the procedure has been extended is not entitled to appeal against the extension decision, in the absence of any abuse of power . Moreover, failure to comply with the obligation to notify the public prosecutor of an insolvency procedure may be appealed only by the public prosecutor .

Under Article L. 661-2 of the Commercial Code, third-party proceedings may be brought against decisions to extend the liquidation procedure. This remedy must be exercised within ten days of publication of the extension ruling in the Official Bulletin of Civil and Commercial Announcements  (BODACC) . The time-limit, which does not run until the judgment has been published , has not been held to be contrary to the requirements of a fair trial and the right to an effective remedy . A creditor who was not a party may lodge a third-party objection to a judgment ruling on the extension of an insolvency procedure to its debtor, provided that the judgment was given in fraud of its rights or that it relies on its own pleas . A bank, creditor of a company placed in insolvency procedure and beneficiary of the guarantee granted by the subsidiary of the latter for this claim, has an interest in lodging a third party objection to the extension of the procedure, even if the insolvency procedure of the two companies were pronounced after its action . A decision granting a third party's objection to a judgment extending the liquidation of a debtor to another company entails its retraction and not merely its unenforceability against the third party plaintiff .

Cass. com., 26 January 2016, LawLex202100002145JBJ (LJ).

Cass. com., 27 September 2016, LawLex202100001052JBJ (LJ).

CA Versailles, 7 October 2010, LawLex202100006029JBJ (S). See also Cass. com., 4 July 2000, LawLex202100003928JBJ (RJ).

Cass. com., 13 February 2007, LawLex202100002778JBJ (RJ).

Cass. com., 6 December 2011, LawLex202100002135JBJ (LJ).

Cass. com. 8 July 2014, LawLex202100002092JBJ (LJ) holding that the exercise of the appeal did not necessarily fall to the court-supervised liquidator.

Cass. com., 11 March 2020, LawLex202100004111JBJ (RJ).

Cass. com., 19 February 2002, LawLex202100003711JBJ (LJ) ; LawLex202100003703JBJ (LJ).

Cass. com., 16 May 2006, LawLex202100006489JBJ (LJ).

Cass. com., 8 October 2003, LawLex202100004486JBJ (RJ).

Cass. com., 29 November 2005, LawLex202100004489JBJ (LJ).

Cass. com., 20 October 2021, LawLex202100005992JBJ (LJ).

Bankruptcy Law

647. Remedy against the extension judgment

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647. Remedy against the extension judgment

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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