Law on enforcement and security interest

Issuing a payment order

Payment order shall be issued in special proceeding which is governed by the provisions of Articles from 455 to 466 of Civil Procedure Law.

Conditions for Issuing Payment Orders

When a civil claim is related to a pecuniary claim which is due, this claim shall be proven by a credible document enclosed with the complaint either as an original document or a certified transcript, the court shall issue an order to the respondent to settle the claim (payment order) on condition that it is accompanied by a proof on delivered request for payment due receivables.

The following shall be considered as credible documents:

  • public documents
  • private documents where the signature of the debtor is certified by a competent body
  • promissory notes and cheques with protest and return accounts if these are required for the foundation of the claim
  • extracts from business accounts
  • invoices
  • documents which are deemed as public documents pursuant to specific provisions.

The payment order shall be issued by the court although the plaintiff did not propose the issue of a payment order in the complaint, and all the requirements are satisfied for a payment order to be issued.

If upon a credible document an execution may be requested pursuant to the Law on enforcement and security interest, the court shall issue a payment order only if the plaintiff satisfies the court that a legal interest for such an act exists. If the plaintiff fails to satisfy the court upon existence of legal interest for issuance of a payment order, the court shall reject the complaint.

When the claim is related to a pecuniary claim which is due and does not exceed the amount in Dinars equivalent to 2.000 EUR, calculated by mean exchange rate of the National bank of Serbia on the day of filing the complaint, the court shall issue a payment order to the respondent although no credible documents were submitted with the complaint, but the complaint indicates the grounds and the amount of debt as well as the evidence upon which the truthfulness of the allegations in a complaint can be established.

The payment order shall be issued only against the principal debtor.

The rules of procedure and the court’s decisions on the proposal to issue a payment order

A payment order shall be issued without holding a hearing.

The court shall state in a payment order that the respondent is obliged to perform the claim from the complaint as well to reimburse costs assessed by the court within time limit of eight days from receiving the order, and in litigations pertaining to promissory notes and cheques, within time limit of three days, or to file an objection against the payment order within the same time limits.

The court shall advise the respondent in a payment order that untimely objections shall be rejected.

A payment order shall be served on both parties.

A copy of the complaint enclosed with relevant attachments shall be served on the respondent with the payment order.

If the court does not grant a motion to issue a payment order, it shall resume the proceedings on the complaint pursuant to the provisions of the Law applicable for the general civil proceedings.

No appeal is permitted against a ruling of the court by which it dismisses a motion to issue a payment order.

The respondent may contest the payment order only by an objection. If a payment order is contested only in respect of the decision on costs, such decision may be contested only by an appeal against a ruling.

In the part which has not been contested by an objection the payment order becomes effective.

The court shall reject untimely, incomplete or inadmissible objections without holding a hearing.

If the objections are submitted in due time, the court shall duly schedule a trial hearing without delay.

Parties may present new facts and propose new evidence, whereas the respondent is entitled to put forward new motions in respect of the contested part of a payment order not later than close of the first trial hearing.

In its decision on the merits of the claim, the court shall adjudicate whether a payment order should entirely or partially remain in force or be annulled.

If the respondent objects that there were no legal grounds for issuing the payment order (Articles 455 and 456 of the Civil Procedure Law) or that some impediments to the further course of the proceedings exist, the court shall first rule on this objection. If it establishes that this objection is well founded, the court shall annul the payment order by a ruling, and upon legal effectiveness of that ruling it shall commence with a hearing on the merits when this is appropriate.

If the court does not allow this objection, it shall proceed with the hearing on the merits of the claim, and the court ruling shall be included in the decision on the merits of the case.

If, upon an objection that the debt is not due, the court finds that the claim had become due subsequent to issuance of a payment order and before the trial hearing was concluded, the court shall annul the payment order by a judgement and adjudicate the claim (Article 343, paragraph 1 of the Civil Procedure Law ).

The court may ex officio declare its lack of territorial jurisdiction, only prior to a payment order being issued.

The respondent is entitled to put forward a motion on the lack of territorial jurisdiction only in an objection against a payment order.

If after a payment order has been issued, the court declares itself lacking subject matter jurisdiction, it shall annul the payment order and refer the case to the court having jurisdiction upon legal effectiveness of a ruling on a lack of jurisdiction.

If subsequent to issuing of a payment order, the court finds that it has no territorial jurisdiction, it shall not annul the payment order, but refer the case to the court having jurisdiction upon legal effectiveness of a ruling on a lack of jurisdiction.

If the court renders a ruling rejecting the complaint in cases provided by the Civil Procedure Law, it shall also annul a payment order.

The plaintiff may withdraw the complaint without the consent of the respondent only before the latter files an objection. If the complaint has been withdrawn, the court shall annul the payment order by a ruling.

If the respondent waives all the objections prior to the conclusion of the trial hearing, the payment order shall remain in force.

In the procedure for issuing payment order before the Commercial courts, the document on the basis of which the payment order is issued shall not be necessarily submitted in the original or certified transcript. The transcript of such document can be certified by an authorised person within a legal entity.

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