The Law Applicable to a Payment Made by a Third Party in Performance of a Contractual Payment Obligation Contested in Insolvency Proceedings as an Act Detrimental to All Creditors
The Law Applicable to a Payment Made by a Third Party in Performance of a Contractual Payment Obligation Contested in Insolvency Proceedings as an Act Detrimental to All Creditors

Summary/Abstract: In the commentary, the author discusses the judgment of the Court of Justice of 22 April 2020 inCase C-73/20, ZM, as receiver in the bankruptcy of Oeltrans Befrachtungsgesellschaft mbH, v. E.A. Frerichs. This judgment concerns a payment made by a third party in performance of a contractualobligation and challenged in bankruptcy proceedings as an act done to the detrimentof the bankruptcy creditors. The Court rightly held that art. 13 of Regulation No 1346/2000 mustbe interpreted as meaning that the law applicable to the contract also applies to a paymentmade by a third party in performance of a contractual obligation to pay incumbent on one ofthe parties to the contract, where, in the context of insolvency proceedings, that payment ischallenged as an act done to the detriment of all creditors. The author approves of the Court’sdecision both as to the thesis and reasoning.

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