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Order no. 10885/2021, Court of Cassation, Civil Division, Section I, 23/04/2021

PRE-DEDUCTION OF THE CLAIM OF A PROFESSIONAL WHO HAS PROVIDED THEIR SERVICES WITH A VIEW TO CARRYING OUT A COMPOSITION WITH CREDITORS

Court of Cassation

With order no. 10885/2021, published on 23 April 2021, the Supreme Court forwarded to the First President, for possible assignment to the Joint Sitting, the documents relating to the issue concerning the pre-deductibility (preference over creditors) of the claim of a professional who carried out his work to access a composition with creditors, which was not successful. 

In this case, the professional, by rejecting the statement of liabilities - in which his claim did not appear - requested that the amount claimed against the company for having supported the drafting of a blank composition agreement, subsequently abandoned by the company concerned, be entered in the statement of liabilities in pre-deduction (pursuant to Article 111 of the Bankruptcy Law) by virtue of the instrumental nature of the claim as well as its functional link with the composition procedure.  

Since this petition was rejected by the Court of First Instance, the professional appealed to the Court of Cassation, which, at the request of the Public Prosecutor’s Office, sent the documents to the First President of the Court of Cassation.

The interim order noted the lack of a clear guideline on this point that would allow a clear definition of when pre-deductibility can be attributed to a professional’s claim arising in the course of an unfinished procedure. In this respect, there are two main theses espoused by case law, which tend to understand the concept of functional nexus differently, and which have contributed to a lack of clarity on this issue.

The first (see Cassation no. 16224/2019; Cassation no. 1182/2018; Cassation no. 22450/2015), in interpreting the functionality of the professional’s activity in a broad sense, takes into account only the instrumental nature of the professional’s work, on the basis of ex ante scrutiny and regardless of the actual contribution made in facilitating the procedure. The second, which is more restrictive, considers the functional link established by means of ex post evaluation based on the tangible utility of the activity carried out for the bankrupt company’s estate (thus: Cassation no. 13596/2020; Cassation no. 30694/2019; Cassation no. 33358/2018), or the utility for creditors (in this sense: Cassation no. 8534/2013).

Lastly, there is also the strand of case law that recognises pre-deductibility based on the stage of development that the composition procedure has reached (see Cassation no. 639/2021; Cassation no. 640/2021; Cassation no. 641/2021).

 

This context therefore requires clarification from the Joint Sitting, which will probably be called upon to exercise its nomophylactic function on the subject.

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