The role of the judge commissioner in bankruptcy proceedings.

Bankruptcy proceedings are a judicial process aimed at solving the problem of the debtor's insolvency. In the Polish legal system, one of the key entities of this procedure is the judge-commissioner. His role is extremely important, as he performs a supervisory, decision-making and coordination function in the process of implementing bankruptcy proceedings. This article discusses in detail the tasks, competences and importance of the judge-commissioner in the Polish bankruptcy law system, with particular emphasis on his impact on the effectiveness and fairness of the proceedings.

Contents:

Legal basis for the functioning of the judge commissioner.

The role of the judge commissioner is defined in Act of 28 February 2003 – Bankruptcy Law (hereinafter referred to as the "Bankruptcy Law"). According to Article 151 of this Act, a judge-commissioner is appointed by the bankruptcy court at the time of declaring bankruptcy of the debtor. His/her activity is limited to a specific bankruptcy proceedings and ceases at the moment of its completion.

Basic tasks of a judge commissioner.

The main duties of the judge commissioner include:

1. Supervision over the course of bankruptcy proceedings – the judge-commissioner ensures that the proceedings are conducted in accordance with the law and in the interests of all creditors.
2. Control of the trustee's actions - trustee as a responsible person for managing the bankruptcy estate and satisfying creditors, is subject to the direct supervision of the judge-commissioner.
3. Dispute resolution – the judge-commissioner is responsible for making decisions on disputes that may arise during the proceedings, e.g. regarding the recognition of receivables, the distribution of funds or complaints filed against the actions of the trustee.
4. Approval of the trustee's actions – many of the actions of the trustee require the consent of the judge-commissioner, e.g. the sale of assets of significant value or concluding an agreement with creditors.
5. Convening a meeting of creditors – the judge-commissioner organizes meetings of creditors, where key decisions regarding the proceedings are made.

Judge Commissioner and Trustee – Cooperation and Supervision.

In bankruptcy proceedings, the key role is played by the trustee, who manages the bankrupt's assets and implements the plan for dividing the funds among creditors. The judge commissioner has a supervisory function over the trustee, which means that he or she controls the legality and expediency of his or her actions.

The judge commissioner has the right to:

• demand regular reports from the trustee on his activities,
• make recommendations for specific actions,
• dismiss the trustee if serious irregularities are found in his work.

Cooperation between the trustee and the judge commissioner is crucial for the smooth running of the proceedings. Lack of coordination between these entities can lead to delays and difficulties in implementing the bankruptcy plan.

Decision-making powers of the judge commissioner.

The judge commissioner has broad decision-making powers that allow him to effectively manage bankruptcy proceedings. Within his powers, the judge commissioner:

• Decides on the recognition of receivables – creditors report their claims to the bankruptcy estate, and the judge-commissioner decides whether to acknowledge or dismiss them.
• Approves the bankruptcy estate division plan – funds obtained from the liquidation of the bankrupt’s assets are divided among the creditors in accordance with the established plan, which must be approved by the judge-commissioner.
• Makes decisions about selling assets – in the case of the sale of an enterprise or an organised part thereof and in the case of the sale of assets through a tender or auction of high-value assets, the judge-commissioner decides whether the sale may be carried out and, if so, under what conditions.

It is worth noting here that the Judge-Commissioner also undertakes all activities reserved for the Council of Creditors, in the event that such council was not established in the proceedings.

The decisions made by the judge commissioner are authoritative in nature, which means that they are binding on all participants in the proceedings.

Protection of creditors' interests.

One of the key tasks of the judge commissioner is protection of creditors' interests. As part of his/her activities, the judge-commissioner ensures that the process of liquidating the debtor’s assets and the distribution of funds is carried out in a fair manner and in accordance with the law.

The judge-commissioner is also responsible for counteracting abuses that may occur during the proceedings. For example, if a creditor reports a non-existent claim, the judge-commissioner is obliged to verify it and, if necessary, reject it.

Judge-Commissioner and the Creditors' Meeting.

The creditors' meeting is a forum where creditors make key decisions regarding bankruptcy proceedings, e.g. they decide on the method of liquidation of the debtor's assets or vote on arrangement proposals, if any were submitted during the proceedings. The judge commissioner acts as the organizer and chairman of these meetings.

His duties include:

• convening meetings at specified times,
• providing creditors with information on the status of the proceedings,
• moderating discussions and ensuring compliance with the agenda.

The judge-commissioner has the right to interfere in decisions made by creditors if he finds that they are contrary to the law or the interests of all participants in the proceedings.

Responsibility of the judge commissioner.

Despite his broad powers, the judge commissioner operates within the law and is subject to judicial review. His decisions may be appealed to the bankruptcy court by the participants in the proceedings if they consider them to be inconsistent with the law or to violate their rights.

In addition, the judge commissioner is liable for any negligence or actions to the detriment of the participants in the proceedings. In such cases, he may be held liable under disciplinary or civil law.

Challenges of the role of a judge commissioner.

The role of a judge commissioner in bankruptcy proceedings is extremely demanding and involves many challenges. The most important of these include:

1. A large number of cases – in practice, judge commissioners often have to supervise several proceedings at the same time, which can lead to work overload.
2. Complexity of matters - many bankruptcy proceedings concerns complex property structures, which requires the judge commissioner to have extensive legal and economic knowledge.
3. Time pressure – bankruptcy proceedings should be conducted efficiently to minimize losses for creditors.

Summary.

The judge commissioner plays a key role in bankruptcy proceedings, being a guarantor of their legality, fairness and effectiveness. Their tasks include both supervision of the trustee's actions and protection of the interests of creditors. In practice, the effectiveness of bankruptcy proceedings largely depends on the competence and commitment of the judge commissioner.

Despite the numerous challenges associated with performing this function, the role of judge commissioner remains one of the pillars of the Polish bankruptcy law system, contributing to the fair resolution of insolvency-related problems.

Daniel Anisimowicz

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