When a payment order may be issued?
The payment order may be requested for monetary claims or claims on debt instruments, only in case that this is a private law dispute and the claim, as well as, the amount due evidenced by a public or private document, or by injunction, issued after confession or admission of the lender’s petition.
The issuance of a payment order may be requested only in case that the claim is not based on condition, deadline, term or consideration and the monetary amount or debt instrument due is specified.
A payment order cannot be issued or, in case that it is issued, is void should its intended recipient has an unknown address, except in cases that it has a legally appointed representative in Greece.
Private document, as legally defined, is considered any document which is not public and has been signed by the issuer. A critical point regarding a private document is whether this document has been signed by the person who is committed through this, , rather than the document was issued by someone who simply wrote or compiled the text.
These documents must show the amount due, the related value of the claim, when this claim became due, and the cause of the debt, as well as the identities of the claimer and the debtor. Should these documents attached in the petition do not prove the claim or the related amount, the payment order is not issued, or in case that it is incorrectly issued it is annulated after the acceptance of a relevant opposition.
May a payment order be issued on the basis of tax documents?
The issuance of a payment order on the basis of invoices-delivery notes for merchandise is possible only if these documents are signed by the buyer indicating its debt acceptance. In case that a third person acting as representative of the liable buyer, and upon its order and authorization, has signed these documents (invoices-delivery notes) in the place of delivery acceptance, the payment order is issued only if this authorization can be proved by a public or private document.
May a payment order be issued on the basis of a post-dated cheque?
The date of a cheque issuance constitutes a necessary formal element of the cheque’s validity, which (validity), though, is not affected should the date written on the cheque is not true, since the cheque is always payable at sight, assuming that it is presented within a period of eight days from the date written upon it. Therefore, the post-dated cheque is valid provided that the issuer of the cheque assumes the risk of its early submission for payment in case this cheque legally appears anytime within the period starting from the date it is issued and ending eight days from the date written upon it. A payment order is legally issued on the basis of a post-dated cheque and the petition for its issuance does not necessary refers to a post-dated cheque, since its appearance within a period starting from the date it is issued and ending eight days from the date written upon it constitutes a valid reason for issuing a valid payment order.
May a payment order be issued in case of overdue rent payments?
A payment order may be issued for overdue rent payments, which sum up to a specific amount, on the basis of the rental agreement assuming firstly that this agreement which has been signed by the lessee specifies the lessee-owner relationship, the lease period, the delivery of the use of the leasehold to the lessee, the rent and secondly that the overdue rents refer to the leasing period for which the payment order has been issued. For issuing a payment order for overdue rents the only requirement is that the leasing agreement proves in advance the delivery of use of the leasehold and the start of the leasing period and there is no other requirement for further proof for the continuation of leasing through the same leasing agreement or any other private or public document, specifically for this particular time period for which overdue rent is requested by the issuing of the payment order, as the use is assumed to be continued.
May a payment order be issued against the State?
As has been accepted by the Supreme Court, the provision of the Law specifying that payment orders issued against the State cannot be executed is in conflict with the Greek Constitution and the International Agreements, therefore, it is permissible the competent civil court to issue a payment order against the State, Local Authorities and Public Legal Entities.
Who is issuing the payment order?
The payment order is issued against the debtor, after a petition to the competent Judge by the claimant. Competence depends on the size of the claim. For claims up to € 20,000 competent authority is the Justice of the Peace, while for higher claims the competent authority is the Single-Member Court of First Instance. In cases of claims for overdue rents the Justice of the Peace may handle cases where the monthly rent is not exceeding the € 600.
Along with the petition, all documents proving the claim must also be submitted to the Judge.
The petition for issuing a payment order must be signed by an Attorney at Law
The debtor’s view is not required for issuing a payment order
The Judge issuing the payment order must have an international jurisdiction. In general, there is an international jurisdiction according to the Greek Law if there is local Court jurisdiction. In addition the provisions of the EU Regulation 44/2001 and the new EU Regulation 1215/2012 are also applied.
The payment order must be served to the debtor within a time period of two (2) months from its issuance, otherwise it shall automatically lapse.
The petition for issuing a payment order as well as the issuance and the service of such order to the debtor does not prevent the claimant from bringing in parallel an ordinary action
Which are the rights of the party against which a payment order has been issued?
The debtor against which a payment order has been issued has the right to bring an opposition to the competent Court at the place where the payment order was issued.
The deadline for opposing the payment order is fifteen (15) working days in case that the payment order has been issued against a party which has its residence or the head office in Greece, and thirty (30) working days in case that the payment order has been issued against a party which has its residence or the head office abroad or has an unknown address.
In case of a foreign resident the opposition period commences with the receipt of the payment order as it is defined by the law of the country of residence or at the actual reception time which is proved by written or judicial admission.
Opposition requires two actions: a) its submission to the competent court and b) a copy served to the party the opposition is against. Both these actions must take place within the above mentioned period. The serving of the opposition and of the application for suspension may take place either at the attorney who signed the petition for the issuing of the payment order or to the address of the party the opposition is against as it is stated in the payment order except if there is a change notified by a formal notice.
If the opposition has been submitted legally on time and contains legitimate and valid grounds, the Court annulates the payment order. Otherwise it rejects the opposition and validates the payment order.
If the opposing party is not present during the Court procedures, the Court deliberates at its absence and rejects the opposition
When a payment order is actually enforced?
The payment order is enforceable.
The opposition procedure does not suspend the enforcement of the payment order.
By way of derogation, the enforcement of the payment order is suspended in case that this order has been issued against a party with unknown address or foreign residency and for the time period required for bringing an opposition.
Enforcement based on the payment order may not start prior to a time period of three working (3) days from the day the payment order along with the enforcement order is served.
Is it possible to suspend the enforcement of a payment order?
In cases that the enforcement of a payment order is not suspended the party against which the payment order has been issued may ask the Court, the Judge of which has issued the payment order, for a suspension until a final judgment on the opposition.
May the judgment on the opposition be subject to appeal?
The judgment on the opposition may be subject to appeal to the Court of Appeal and furthermore to the Supreme Court.
If an appeal for the judgment is submitted on time, the Court issuing this judgment may, in case that it is probable that the appeal will be accepted, to suspend in total or in part the enforcement until a final judgment, with and without security. Under the same circumstances the Court deliberating on the appeal may, during any interval of the trial, upon a petition of the debtor which is submitted along with the appeal documents, to suspend the enforcement according to the previous paragraph. The possibility for such suspension by the Court of Appeal exists also even if it had not been granted by the judge of the Court of First Instance.
What happens if the party against which the payment order has been issued does not oppose?
In case that an opposition has not been submitted on time the party petitioning the payment order may service once more the order to the debtor which has the right to oppose within a period of fifteen (15) working days from the new service. In this case suspension is not permissible. If an opposition is not submitted during the above stated period, the payment order gets the force of final judgment and may be challenged only by reopening.
What is happening with the statute of limitations?
The serving of the payment order interrupts the statute of limitations and the limitation period.
If the payment order is annulated, the statute of limitations or the limitation period is considered as suspended from the day of servicing the payment order until a final judgment is issued regarding the opposition.
Charges, interest and expenses
In order to issue a payment order the petitioner must pay the judicial stamp duty which is estimated as a percentage of the amount claimed. Presently, this percentage is approximately 1%.
Along with the payment order not only the capital but also interest and judicial expenses are awarded borne by the party against which the payment order has been issued.
Moreover, an amount equivalent to the judicial expenses, which appears underneath the copy of payment order and which has been served to the debtor, is awarded to the attorney who drafted the enforcement order.
