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Unenforceability of the lien in an insolvency and outside or "Attention twist!"

Publication at Faculty of Law |
2015

Abstract

The article is dedicated to a recent substantial shift in the case law of the Czech Supreme Court in the area of avoidance of the pledge, to negative impacts, which this impact generates, and to the possibilities of their solution. It actually follows from this case law that in the regime of general avoidance it is possible to attack just an exercising act of a creditor and not the very pledge agreement and in the regime of insolvency avoidance, there is basically an opposite situation.

As a consequence of this incompatibility there can be a factual incontestability of the pledge establishing by the way of avoidance. The authors of the article stand by the opinion that this incompatibility shall be eliminated by means of the admission that even in the regime of general avoidance there will be possible to attack the very pledge agreement.