Judgment No. 10719 of 2024: Revocability of Payments Made Through Intermediaries

Order No. 10719 of April 22, 2024, issued by the Court of Cassation, offers significant insights into the revocability of payments made through intermediaries in the context of bankruptcy proceedings. The judgment, authored by Judge G. D., clarifies fundamental aspects concerning creditors' rights and the conditions under which payments can be considered revocable.

Regulatory and Jurisprudential Context

Pursuant to Article 67, paragraph 2, of the Bankruptcy Law, payments made through intermediaries are revocable against the final beneficiary, but not against the intermediary accipiens. This legal principle is based on the idea that only the final beneficiary of the performance owed by the debtor, who subsequently becomes bankrupt, can be subject to revocation if the payment was made using funds specifically intended for them.

Payments made by the solvens through an intermediary - Revocability ex art. 67, para. 2, Bankr. Law - Prerequisites - Passive standing - Final beneficiary of the performance - Conditions - Basis. In matters of bankruptcy revocation, payments made through specialized intermediaries are revocable against the final beneficiary of the performance owed by the debtor, who subsequently becomes bankrupt, and not against the intermediary accipiens, only if the latter has used the funds pre-arranged by the ordering party in favor of the actual recipient, and not when, in the face of pre-existing debts of the solvens towards the accipiens, it appears that the payments had a settlement function, because, in such a case, the intermediation function in the payment is absorbed by a credit function.

Conditions for Revocability

The Court holds that for the revocability of payments made through intermediaries, certain conditions must be met:

• The payment must have been made using funds pre-arranged in favor of the final beneficiary.
• There must be no pre-existing debts of the solvens towards the intermediary accipiens, otherwise the payment could be considered a settlement function.
• The intermediation function must not be absorbed by a credit function.

Conclusions

In summary, Order No. 10719 of 2024 represents an important clarification in bankruptcy law, highlighting the specific conditions that determine the revocability of payments made through intermediaries. The Court of Cassation, with this decision, reiterates the need for a careful analysis of the circumstances under which payment occurs, to ensure adequate protection for creditors in the event of the debtor's bankruptcy. It is crucial for legal professionals to keep these indications in mind, as they can significantly influence debt recovery strategies and the management of insolvency proceedings.