Composition Agreement: Commentary on Judgment No. 18019 of 2024

Judgment No. 18019 of July 1, 2024, issued by the Court of Appeal of Venice, represents an important clarification on composition agreements and, in particular, on the power of parties to challenge the decisions of the delegated judge. This decision is part of the framework provided by Italian bankruptcy law, specifically Article 169-bis, and offers significant insights for those managing corporate crisis situations.

Regulatory Context

The composition agreement is a legal instrument that allows a struggling entrepreneur to restructure their debts and continue their business. However, the decisions of the delegated judge, who operates in this area, can be challenged. The Court has established that a party dissatisfied with a measure issued pursuant to Article 169-bis may assert the lack of prerequisites for the pronouncement of dissolution or suspension, even after the composition agreement has been approved.

Measure issued by the delegated judge pursuant to art. 169bis bankruptcy law - Contestability in full cognisance proceedings - Existence - Approval of the composition agreement - Preclusion – Exclusion - Reasons.

Implications of the Judgment

The Court has clarified that the administrative nature of the measure does not become judicial even after the composition agreement has been approved. This means that there is no res judicata preclusion preventing the filing of a judicial claim in ordinary proceedings. The parties involved can challenge decisions concerning pending contracts and related claims, allowing for greater protection of the rights of creditors and entrepreneurs.

• Possibility to challenge decisions even after approval.
• Administrative nature of the delegated judge's decisions.
• Greater protection for parties involved in the composition agreement.

Conclusions

In summary, judgment No. 18019 of 2024 marks an important step in Italian bankruptcy law. It consolidates the possibility of challenging the decisions of the delegated judge, reinforcing the principle that every party must have the opportunity to defend their rights. This approach promotes greater fairness and transparency in composition agreement procedures, which are essential elements for safeguarding businesses and jobs. Legal professionals and entrepreneurs must pay attention to these provisions to successfully navigate the complex landscape of corporate crises.