Court Victory in Annulment of Time-Barred Payment Order
Papatriantafyllou & Thanasenari secured a significant legal victory by achieving the payment order annulment in Greece on the basis that the underlying claim was time-barred. The case involved an objection to enforcement proceedings initiated by a financial institution against borrowers. Specifically, the claim was based on a loan agreement guaranteed by the Greek State. The court ruled in favor of our clients, confirming that the bank’s claim was barred by the statute of limitations.
Legal Grounds for Payment Order Annulment in Greece
Following years of inaction, the bank issued a payment order in 2024, alleging overdue amounts under a loan agreement. However, it had never terminated the agreement — a necessary legal action to render the full outstanding amount due and payable. Without such termination, the claim could not benefit from the 20-year limitation period under Article 249 of the Greek Civil Code.
The last payment made by the borrowers dated back to 2017. Since then, the bank had taken no action to collect the debt or interrupt the limitation period. Therefore, the repayment installments remained independently enforceable and subject to the five-year limitation period under Article 250(15) of the Civil Code.
Our Legal Approach – Raising the Limitation Defense
On behalf of our clients, we filed an objection (opposition to enforcement), citing the statute of limitations as grounds for payment order annulment in Greece. Our legal argument relied on Article 250 of the Civil Code, which applies when no loan termination has occurred, triggering a shorter limitation window of five years.
The Court’s Decision – Full Annulment of Enforcement Measures
The court fully accepted our arguments and held that:
- The bank had taken no action to interrupt or suspend the statute of limitations
- The payment order was issued based on a time-barred claim
As a result, the court:
- Annulled the payment order
- Annulled the payment notice
- Cancelled all related enforcement actions
- Awarded legal costs in favor of our clients
Legal Significance and Impact
This decision affirms the role of the statute of limitations as a core legal protection for debtors facing stale claims. It reinforces the principle that creditors, including banks, cannot indefinitely delay enforcement without taking the necessary legal steps.
The ruling is consistent with established case law, which emphasizes that the statute of limitations is not a mere procedural tool, but a substantive mechanism to ensure legal certainty and transactional fairness.
Our Approach
At Papatriantafyllou & Thanasenari, our team approached the case with meticulous legal analysis and solid jurisprudential grounding. We prepared thoroughly and presented a clear, well-documented legal position.
This successful outcome demonstrates our strategic commitment to defending clients effectively — especially in complex disputes against financial institutions.
Why This Matters
Timely legal assessment and strategic litigation can reverse enforcement actions that may appear final. For individuals facing similar claims, this case proves that legal remedies are available — provided the response is substantive, evidence-based, and well-planned.