Judgment of the Court of Appeal of Porto of 2014-11-06

Insolvency proceedings – Creditors of the insolvent debtor – Termination of proceedings – No need to adjudicate on the action

In this decision, the Court of Appeal of Porto was requested to rule on the claim of a claimant who sought to obtain the conversion of a contract of purchase of a vehicle or a declaration of nullity of the said contract. However, while this action for the recognition of a credit claim was pending, the defendant was declared insolvent , for which reason the Court of 1st instance considered that the action had become useless, and discharged the defendant from the proceedings.

The claimant argued that the cause of action was complex, since the same did not seek the recognition of a claim but rather the conversion of a purc hase and sale through the acquisition of the good by the seller, or the declaration of nullity of the transaction (with the consequent request that the sum paid in the context of the same be returned ), should the defendant not acquire the good. The claimant thus claimed that the action did not relate to assets of the insolvent estate assets, and that the same were therefore outside the reach of the administrative receiver.

The Court of Appeal of Porto disagreed with the arguments of the claimant , stating that the acquisition of an asset represents its inclusion in the insolvent estate , much like the request for a declaration of nullity of the transaction represents the demand of a claim , in line with the Judgment of the Supreme Court of Justice of 12.12.2013. Accordingly, this court agreed with the decision appealed against and considered the proceedings terminated on account of the absence of any need to adjudicate .