RESUMPTION OF PROCEEDINGS THAT HAD BEEN INTERRUPTED ON ACCOUNT OF THE BANKRUPTCY OF ONE PARTY

The Court of Cassation in Joint Sitting has intervened to resolve the conflict in case law that has arisen on the subject of the resumption of proceedings that have been interrupted by a supervening adjudication in bankruptcy.

The Supreme Court has held that, notwithstanding the automatic interruption of the proceedings pursuant to Article 43(3) of the Bankruptcy Law, the time limit for the resumption of proceedings starts from the day on which the judicial declaration of the interruption of proceedings is brought to the attention of each party. This declaration, if given at the hearing, is deemed to be known to the parties present pursuant to Article 176(2) of the Civil Procedure Code. Otherwise, for the purposes of starting the time limit for resumption, the interruption of the proceedings must be notified, or communicated by the office of the court, to the administrator and the parties who did not have legal knowledge of it.