#NewCCP: Changes to payment order procedure

Coming into force on 7 November 2019, the amendment to the Polish Code of Civil Procedure implements major changes to the current legal framework with respect to the payment order procedure, which is commonly and readily used by enterprises to seek fast and efficient recovery of claims. Although the requirements associated with securing a payment order in the payment order procedure are among the most stringent requirements in use, this procedure offers quick injunction ahead of the final resolution and does not require high legal costs.

Below is an overview of the key changes to the payment order procedure that apply to procedures initiated after 7 November 2019.

Grounds for issuing a payment order 

As of 7 November 2019, a payment order will be issued if the facts providing grounds for the claim sought will be evidenced by a public document; bill accepted by the debtor; notice of payment to the debtor and the debtor’s written acknowledgement of debt; and a promissory note or bill or exchange or a cheque.

In the light of the new legislation, it will no longer be possible to rely on a request for payment accepted by the debtor and returned by a bank and not paid because of no sufficient funds in the bank account. A payment order will not be available against a debtor under a warrant or reversal.

The court will no longer issue a payment order where a bank seeks recovery of claims by relying on an extract from bank books signed by individuals authorised to make binding declarations in respect of the bank’s property rights and obligations and bearing the stamp of the bank and a proof of delivery of a written notice of payment to the debtor.

Unknown whereabouts of the defendant

The provisions which establish the prerequisites for refusal to issue or set aside ex officio a payment order have been partially repealed. Following the amendment, circumstances such as unknown whereabouts of the defendant and inability to serve a certified copy of a payment order on the defendant within the country will not qualify as prerequisites for the Court to set aside ex officio an issued payment order.

Senior Judicial Clerks

Another change is empowering Senior Judicial Clerks to proceed in a payment order procedure. Previously, this privilege rested exclusively with judges. The above measures are aimed at further expediting the procedure and speeding up the processing of cases resolved in payment order procedures.