Abstract
Abstract A recent decision of the Romanian High Court of Justice dated 6 March 2019 offers the possibility to analyse the recovery of the prejudice caused to a creditor by a company under court proceedings after on its insolvency. The applicable regulations (i.e. Law no. 85/2015) represent the legal framework, which aims at debt payment by the insolvent debtor to his creditors. Therefore, the procedure is collective and all the known creditors are involved. Consequently, the law regulates the means and the conditions of this procedure. The prejudice caused to a creditor by the insolvent company shall be recovered following the rules of the special law and not through the general applicable rules, i.e. the Civil Code. The article aims to identify the relevant theoretical aspects and their applicability in practice by the courts of law.
Highlights
A recent case of the Ist Civil Section of the High Court of Cassation and Justice [1] gives us the opportunity to make an analysis on the manner and conditions under which the recovery of the damage caused to the creditor by a company that is insolvent is regulated in Romanian law, namely the ways and means of carrying out this activity
This legal text is applicable to all claims and from the date of the opening of the proceedings governed by the insolvency law can no longer be used the common law path for the tortious civil liability of the debtor
The insolvency proceedings are aimed at rescuing the debtor in financial difficulty and covering the debtor's claims that can no longer recover economically
Summary
A recent case of the Ist Civil Section of the High Court of Cassation and Justice [1] gives us the opportunity to make an analysis on the manner and conditions under which the recovery of the damage caused to the creditor by a company that is insolvent is regulated in Romanian law, namely the ways and means of carrying out this activity. In the case of judicial reorganization, this procedure implies the preparation, approval and implementation of a reorganization plan which aims to restructure the debtor's business, or to liquidate assets belonging to the debtor in order to make his activity viable and to be able to pay the debts to the creditors. In this case the debtor's activity continues, but under certain conditions. It should be noted that both procedures are alternative ways without an order of priority between them, and the choice of one or the other is made according to the economic situation of the debtor (see Turcu, 2008; Adam, Savu, 2006)
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