NEW LAW 4329/2015 – Payment orders on administrative contract follow-up claims

/ / Legal x-rays

The Law 4329/2015 which was published on June 2, 2015 introduces new provisions regarding Greek procedural administrative law. In particular, the law foresees the possibility of a payment order for existing claims arising from administrative contracts signed in the context of a commercial transaction. The new law amends the Administrative Procedural Code and includes a Third Part which regulates the procedure by which such a payment order may be issued. All relevant provisions will take effect on September 16, 2015. In particular:   

1) A payment order may be issued provided it deals with non-contested money claims, meaning claims which have been explicitly acknowledged by the debtor if:

a) The claims result from administrative contracts signed within the context of a commercial transaction and

b) The preventionary inspection of the relevant cost has been positively completed (evidence).

2) Issuing a payment order requires the prior filing of this demand by the beneficiary of these claims. A copy of the demand must be served to the opposing party within 8 days from its filing. The opposing party must produce, within 30 days, an attestation of the department which is responsible for issuing the payment order, regarding the preventive inspection results. If the 30-day period expires or if the department replies that the inspection has not yet been completed, it is then presumed that the preventive inspection was positively completed (in correlation to what is previously referred in 1b).   

3) No discussion is being held in court regarding the issuance of the payment order. The competent judge must issue as fast as possible and in any case within 60 days since the attestation has been produced, the payment order and enforce thereof the debtor to pay the amount owed. On the other hand, if the judge considers that that the conditions needed are not fulfilled, he declines the demand.  If the payment order is issued, it must be served within 30 days to the opposing party.

4) The payment order is an executable title. The opposing party is entitled to a 30-day stay of execution petition.  

Our law firm’s comment:

The new law 4329/2013 introduces new provisions which have significant effects to the Greek Procedural Administrative Law. For the first time, a claims beneficiary from administrative contracts may file a payment order petition. This long-overdue possibility will significantly contribute to the overall efficiency of the judicial system.