Compulsory payment order in the Czech Republic

Short procceding, which preserves the creditor's interests. There will be an electronic form available from July.

Compulsory payment order is a legal institute, which is well-known among attorneys and businessmen. It is the fastest instrument, which the system of law gives to the one, who has a (cash) claim and who wants to enforce its payment legally on trial. The Judge can promptly issue the compulsory payment order based only on the written evidence, without hearing the debtor's arguments.

The requirements stated in the Czech Civil Procedure Code for issuing the compulsory payment order are short and simple: the claim has to be cash and the right for payment must arise from the facts presented by the creditor. Pursuant to this fact the judge could issue the compulsory payment order, whereas orders to the debtor a time-limit of 15 days to pay the requiered amount and accessions thereof and the reimbursement of creditor's court fees at the proceeding (including the court representation costs of the creditor). On the contrary the same time period has the debtor to file the protest against the compulsory payment order.

In comparison with the Italian legislation, it is good to remark, that the compulsory payment order could be issued by an office as well - without initiating the proceeding explicitly by the creditor - and that the time-limit for paying by the debtor is definitely shorter (15 days instead of 40 days in the Italian law). It is also important to say, that if the debtor during the given time-period does not file the protest, the compulsory payment order becomes final and entitles the creditor to the enforcement of the decision (such as attachement) but in a case when the debtor files the protest, the compulsory payment order is reversed and the court orders an ordinary trial to hear the case.

However there are some cases when the court can not issue a compulsory payment order. Those are the cases, when the judges panel is competent (cases, which can not be heard by the judge sitting alone in accordance with the Cicil Procedure Code), or in a case, when it is impossible to find out the debtor's residence due to the registration of citizens. Then it is also impossible to issue the compulsory payment order in a case if it should be served abroad.

The interesting thing is the fact, that the Czech Civil Procedure Code requires, that the compulsotry payment order should be delivered in one's own hands: so the substituted service is not allowed, such as placing it in post office. Nowadays the mean time of the compulsory payment order proceeding is approximately 4 months. But after July 1 creditors could acquire issuing of the compulsory payment order in an electronic form - as well as it could be issued in some European countries (such as in Germany or Austria) at the websites of the Czech Ministry of Justice will be available an electronic form, which will be sent after its completing to the court having the subject-matter and local jurisdiction, this court varifies the correctness, issues the compulsory payment order and serves it to the debtor (with electronic signature). This news should make the proceeding fast and take from the Czech justice the administrative stress by verifying the authenticity of unsettled bill for electricity, gas, rent and other obligations.

Massimiliano Pastore