On May 15, 2018, the Judges’ Council of the Supreme People’s Court issued Resolution No.03/2018/NQ-HDTP guiding the application of a number of provisions of law on settlement of disputes on the handling of bad debts of collateral assets of bad debts in court. This Resolution took effect since July 01, 2018.
One of the prominent features of Resolution No.03/2018 / NQ-HDTP is the regulation on the authorization and re-authorization of individuals and legal persons in initiating lawsuits or taking part in legal proceedings in disputes over the handling of bad debts and security assets of bad debts. Specifically:
1. Individuals are entitled to authorize legal persons or other individuals to participate in legal proceedings at competent courts to settle disputes over the handling of bad debts and security assets of bad debts.
2. Legal persons have the right to authorize legal persons or other individuals to initiate lawsuits or participate in court proceedings at competent courts for settlement of disputes on the handling of bad debts or security assets of bad debts.
3. Individuals or legal persons authorized to re-authorize other legal persons or individuals to participate in legal proceedings if the authorizing party agrees in writing.
In resolving disputes on the handling of bad debts and security assets of bad debts, if the authorization contracts are established before January 1, 2017 between organizations, individuals which have not yet been or are being implemented with content and form in accordance with the provisions of the Civil Code in 2015 and at the time the court accepts the case, there is no dispute about the authorization contract, the court recognized the validity of the authorization contract without requiring the parties to re-establish.
With detailed and specific regulations, Resolution No.03/2018/NQ-HDTP has helped to reduce difficulties and obstacles in the practice of resolving disputes over the handling of bad debts and security assets of bad debts, thereby enabling credit institutions to shorten litigation procedures, save costs, ensure the handling of bad debts, and handle the security assets of bad debts effectively.