UPC CFI, LD Hamburg, 26 June 2025: Stay of proceedings because of insolvency
04-09-2025 Print this page
If a party is declared insolvent the parties’ representatives are still able to file the stay application under Rule 311.1 RoP.
This corresponds with the concept of the RoP that the insolvency of a party does not lead to an automatic stay of proceedings, thus upholding the legal ability of the assigned representative to act before the UPC on behalf of the party.
In fact, it is the acting representatives’ obligation to notify the Court of the insolvency.
The proceedings are stayed in their entirety, including the proceedings against the company director. A stay according to R. 311 RoP is generally a stay of the proceedings as a whole.
Due to the stay of the proceedings the three Defendants are no longer obliged to provide the ordered security. This is independent of the fact that the Local Division's power to revoke the security order under R. 335 RoP.
