Judgment No. 17962 of 2024: Super-Priority and Composition with Creditors

The recent order No. 17962 of 07/01/2024, issued by the Court of Cassation, provides important clarifications regarding the recognition of super-priority for professional claims in the context of composition with creditors and subsequent bankruptcy. This decision emphasizes how the failure to be admitted to the composition procedure can affect the possibility of recognizing claims as super-priority.

Context of the Judgment

The case concerns the professional M. F., who had provided services to the debtor in view of accessing the composition with creditors procedure. However, following the withdrawal of the composition application, the debtor was declared bankrupt. The central issue of the dispute is whether the professional's claim could be considered super-priority in the context of the subsequent bankruptcy.

Composition with creditors - Professional claim - Failure to be admitted to composition - Recognition of super-priority in subsequent bankruptcy - Exclusion - Reasons - Factual circumstances. In the matter of composition with creditors, the claim of a professional engaged by the debtor for access to the procedure cannot be considered super-priority in the subsequent and consecutive bankruptcy, where there has been no admission to the lesser procedure, given that such circumstance eliminates that concrete functional link between the professional services rendered and the objectives of the alternative procedure to bankruptcy, which constitutes the prerequisite for the recognition of super-priority. (Factual circumstances concerning withdrawal of the composition application followed by a declaration of bankruptcy).

Analysis of the Headnote

The headnote of the judgment highlights that, for a claim to be considered super-priority, there must be a functional connection between the professional services and the objective of avoiding bankruptcy. In the specific case, the Court held that the failure to be admitted to the composition procedure had broken this link, thus excluding the super-priority of the claim.

Practical Implications

This decision has several practical implications, including:

• The need for professionals to ensure that their work is formally linked to a valid composition procedure.
• Impact on contractual agreements with debtors, which should clarify payment terms and any insolvency procedures.
• The importance of legal advice before undertaking actions that may lead to insolvency proceedings.

Conclusions

Judgment No. 17962 of 2024 represents an important guide for professionals operating in the bankruptcy law sector. It clarifies that admission to the composition with creditors procedure is a fundamental step for the recognition of super-priority for professional claims. In an ever-evolving economic context, it is essential for professionals to be informed and prepared to face such situations, both to protect their own rights and to ensure proper assistance to debtors.