By: A.G. Paphitis & Co Law Firm
On September 30th, 2022 we successfully obtained a judgment in favour of our client, against two judgment debtors that have been attempting to circumvent the repayment of a loan since 2013.
After the original court judgment ordering them to repay the loan, the debtors proceeded with transferring their immovable property in an attempt to fraudulently impede or delay our clients from recovering the debts by registering an encumbrance or applying for the sale of the said properties. The litigation battle lasted for 10 years before the District Court of Limassol, and has now ended successfully for our client after the judge ruled that the debtors had indeed transferred their immovable property in an attempt to hinder our clients from recovering their dues, whilst deeming the registration of the properties to the new owners as a fraudulent one. The court issued an order for the cancellation of the fraudulent transfers and re-registration of the same onto the name of the debtors.
Background
Our clients granted a loan to the couple in 2008 which they eventually defaulted by not making the payments on time. The debtors were requested to pay the due amount within 21 days but did not comply with our client’s request, which resulted in the initiation of legal proceedings against them. After we successfully acquired a default judgment against them, they sought to have the judgment set-aside which the court dismissed. Consequently, they moved to have their properties transferred to their relatives, in an attempt to impede our clients from taking enforcement measures against them (i.e. registering an encumbrance over the immovable property and/or their sale). Once our clients were made aware of this incident, we submitted an application to have the immovable property declared as transferred fraudulently, whilst seeking re-registration of the same to the original owners, the debtors.
Collectively, the case took 10 years in court and recently the presiding judge ruled in favor of our clients for the cancellation of the transfers, whilst an order was also issued deeming the same as “fraudulent transfer of the property”, ordering that the properties be re-registered to the debtors.
The judgment was decided on the basis of Article 3 and 4 of Chapter 62 that any donation or other transfer of immovable or movable property which occurs before and/or after the initiation of a claim or other procedure in which the right to recover the debt has been proven, may be cancelled by order of the Court.
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