Vietnam: Does the Court have to summon and serve court papers to both the credit institutions and the company buying non-performing loans of the credit institutions when settling the civil case?
- What are the regulations on authorized representatives in civil proceedings of Vietnam?
- What are the regulations on the authorization of filing a lawsuit or participating in legal proceedings in Vietnam?
- Does the Court have to summon and serve court papers to both the credit institutions and the company buying non-performing loans of the credit institutions when settling the civil case?
What are the regulations on authorized representatives of individuals and juridical persons in Vietnam?
Pursuant to Article 138 of the 2015 Civil Code on authorized representatives as follows:
Article 138. Authorized representatives
1. Each natural or juridical person may authorize another natural or juridical person to enter into and perform a civil transaction.
2. Members of a household, co-operative group or a non-juridical person may agree to authorize another natural or juridical person to enter into and perform a civil transaction related to their common property.
3. A person aged from fifteen years to below eighteen years may be an authorized representative, except where the law provides for that the civil transaction must be entered into and performed by a person who has reached eighteen years of age.
Thus, each natural or juridical person may authorize another natural or juridical person to enter into and perform a civil transaction.
What are the regulations on authorized representatives in civil proceedings of Vietnam?
Pursuant to Article 85 of the 2015 Civil Procedure Code on as follows:
Article 85. Representatives
1. The representatives in civil procedures comprise the representatives at law and the proxy representatives. The representatives can be individuals or legal entities as defined in Civil Code
2. The representatives at law as defined in the Civil Code shall be the representatives at law in the civil procedures, except where the representative right is restricted under law provisions.
Agencies, organizations and individuals that initiate lawsuit to protect the legitimate rights and interests of others shall also be the representatives at law of the protected persons in the civil procedures.
3. Employee collective’s representative organizations shall be lawful representatives of collective of employees initiating lawsuits over labor cases, participate in procedures at Courts when legitimate rights and interests of the collective of employees are infringed upon; employee collective’s representative organizations are in charge of representing employees in initiating lawsuits over labor cases and participate in procedures when being authorized by employees.
If multiple employees filing the same claim towards the employer of the same enterprise/unit, such employees may authorize a representative from the employee collective’s representative organization to represent them in initiating lawsuits over labor cases and participate in procedures at the Court.
4. The proxy representatives as defined in the Civil Code shall be the proxy representatives in the civil procedures.
For the divorce, the involved parties must not designate any other persons to participate in the procedure on their behalf. If parents or other relatives of the involved parties petition the Courts to resolve the divorce cases as prescribed in clause 2 Article 51 of the Law on marriage and family, they such be the representatives.
Thus, the authorized representative under the provisions of the Civil Code is the authorized representative in civil proceedings. Accordingly, in Clause 2, Article 86 of the Civil Procedure Code 2015: The proxy representatives in civil procedures shall exercise the procedural rights and obligations of the involved parties according to the written authorization.
What are the regulations on the authorization of filing a lawsuit or participating in legal proceedings in Vietnam?
Pursuant to Article 6 of Resolution 03/2018/NQ-HDTP as follows:
- A natural person is entitled to authorize another juridical person or natural person to participate in legal proceedings at the competent court to settle a dispute over settlement of NPL or collateral associated with NPL.
The lawsuit petition of a natural person shall be made in accordance with Clause 2 Article 189 of the Civil Procedure Code.
- A juridical person is entitled to authorize another juridical person or natural person to file a lawsuit at the competent court to settle a dispute over settlement of NPL or collateral associated with NPL.
- The authorized natural person or juridical person may re-authorize to another natural or juridical person to participate in the legal proceedings if the authorizer gives a consent in writing.
Thus, a juridical person may authorize another juridical person or natural person to file a lawsuit, or participating in legal proceedings at the competent court to settle a dispute over settlement of NPL or collateral associated with NPL.
Does the Court have to summon and serve court papers to both the credit institutions and the company buying non-performing loans of the credit institutions when settling the civil case?
Pursuant to subsection 4, Section IV of Official Dispatch 02/TANDTC-PC in 2021, in this case, the company bought non-performing loans of the credit institutions, then the company gave a written authorization to the credit institution with the content that the credit institution could initiate a lawsuit and participate in court proceedings to settle a dispute over the settlement of non-performing loans or collateral, the authorized credit institution shall have the civil procedural rights and obligations of the involved party. Therefore, when settling the case, the Court must summon and serve the court papers to the authorized credit institution, not summon and serve the court papers to the company.
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