case law

id : 20079

id: 20079

Polish Supreme Court ruling

dated 6 March 1939

Case No. C II 1888/38

Summary by arbitraz.laszczuk.pl:

The plaintiffs moved to quash execution proceedings on the grounds that the claim sought to be enforced against them had been set off against amounts owed the plaintiffs under an arbitration award. The court of appeal dismissed the action on the grounds that the claim could not be set off against the arbitration award because the plaintiffs had not obtained an enforcement clause for the award. The Polish Supreme Court denied the cassation appeal, holding that the award was due and payable and could therefore be set off without first obtaining an enforcement clause. However, the setoff was for the principal amount of the award plus interest and additional costs. Because the interest and additional costs were not specified, the setoff was ineffective, and therefore the plaintiffs’ motion to quash the execution proceedings was properly denied.

Excerpt from the text of the court’s ruling:

The fact that an execution clause has not been affixed to an arbitration award in accordance with Civil Procedure Code Art. 594(2) and Execution Ordinance §54(3) has only the negative consequence that the plaintiffs may not enforce their claim by way of execution before obtaining such clause, due to the lack of a writ of enforcement (Civil Procedure Code Art. 540), but this does not affect the fact that the claim adjudged by such award remains due and payable, or the right to setoff, which is based on the Obligations Code rather than the [Civil Procedure] Code provisions concerning judicial execution proceedings.

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