Separate act page
Tallinna mnt 32: auction invalidated because debtor was not properly notified
Judgment · Tartu Ringkonnakohus · Appeal
Narva linn, Tallinna mnt 32 korteriühistu · OÜ Feksinar · OÜ Aktiva Finants · 80069939 · · 10746479
Entry into force has not been reverified
Participants and roles: Claimant and appellant – XX; Defendant – bailiff XX; Defendants – purchasers XX and XX; Defendants – the association, OÜ Feksinar (bankrupt) and OÜ Aktiva Finants
How it started · editorial summary
The appeal concerned the auction’s validity and the duty to notify the debtor of it.
The dispute and the court’s decision
The circuit court invalidated a repeat auction because debtor XX was not properly notified and ordered correction of the ownership entry. Claimant XX challenged the repeat auction at which an apartment was sold in enforcement proceedings on 10 April 2019. Defendants were the bailiff, two purchasers, Narva linn, Tallinna mnt 32 korteriühistu, bankrupt OÜ Feksinar and OÜ Aktiva Finants. The claimant alleged that notice was sent to an email address he did not use although the bailiff knew another address. He also relied on another co-owner’s rights.
The bailiff and the other objecting defendants considered notification sufficient and relied on register data; the association did not respond to the claim. The county court dismissed it, considering publication and sending notice to the population register address sufficient. Tartu Ringkonnakohus set that judgment aside. It explained that the duty to inform the debtor of an auction notice’s contents applies to real estate sales too. This allows the debtor to object to the auction and protect their rights.
The circuit court found that the bailiff had previously corresponded with the claimant at another address and had not proved using the register address for communication. In these circumstances, the risk of not receiving notice could not be placed on the debtor. The breach was substantial and the repeat auction was invalidated.
The court ordered the purchasers to consent to amendment of the land register entry and registration of the claimant as owner; the judgment replaces their declarations of intent. Registration of the other co-owner is to be resolved under a separate judicial act, as no such demand was made in this claim. The claimant’s costs at both levels were imposed on the bailiff, to be quantified by the county court. The other participants bear their own costs.
Outcome of this decision
Set aside the county court judgment and grant the claim and appeal. Invalidate the repeat auction; the judgment replaces the purchasers’ consents to correction of the ownership entry. The bailiff bears the claimant’s costs.
Translation of an anonymised, abridged excerpt from Estonian
1. Set aside the Viru Maakohus judgment of 2 March 2020.