Action for Annulment of Objection

An action for annulment of objection is brought by the creditor in the general courts so that enforcement without judgment, stopped by the debtor’s objection, can continue (Enforcement and Bankruptcy Law Art. 67). If the objection is annulled, the proceedings resume where they stopped.

Time Limit

The action must be filed within one year of service of the debtor’s objection on the creditor. This is a forfeiture period. After it expires, the creditor may still bring an ordinary claim, but the enforcement proceedings lapse and bad faith denial compensation cannot be claimed.

Court and Mediation

• The action is filed with the competent general court depending on the nature of the claim; for commercial cases, with the commercial court.
• In commercial cases about monetary claims, applying to mediation is also mandatory before an action for annulment of objection. The mediation process is taken into account in calculating the one-year period.
• The competent court is the court where the enforcement office is located or the court determined under the general jurisdiction rules.

Proof

An action for annulment of objection is in substance a claim for payment; the creditor proves the claim under the general rules of evidence. Commercial books, invoices, contracts and correspondence are the main evidence. A court expert examination is ordered where necessary.

Consequences

• If the objection is annulled, enforcement continues.
• If the claim is liquidated, bad faith denial compensation is awarded against a debtor who objected without justification.
• If the enforcement is found unjustified and the creditor acted in bad faith, compensation may be awarded against the creditor.

Difference from Removal of Objection

Removal of objection is decided by the enforcement court through a quick document-based review, within six months. Annulment of objection is decided by the general courts after a full trial. Claims without sufficient documentation use the annulment route.