The new Enforcement and Security Act (hereinafter: the “Act”) entered into force on the 1 July 2016, except for certain provisions which came into force on 29 November 2015. The long expected innovation of enforcement and security procedures in Serbia brings significant changes. Among others, these are related to the scope of authorities of enforcement agents.
Under the Act, the final stage of enforcement proceedings, i.e. the process of execution, was transferred to the jurisdiction of enforcement agents. Exceptionally, a court will remain in charge of the process of execution in cases related to sale of property in joint ownership, family relations, and returning of an employee to work. These novelties are a huge step forward compared to the previous provisions which allowed creditors to decide whether this procedure would be conducted by a court of by an enforcement agent.
In addition to the process of execution, enforcement agents have exclusive authority to decide on the motions for initiation of enforcement proceedings in case of claims resulting from communal services and related activities. Nevertheless, in these proceedings the enforcement agents are under judicial control as both a creditor and a debtor have the right to file a complaint to the court and contest the enforcement agent’s decision.
The Chamber of Enforcement Agents is set to adopt new internal rules which will be in line with the new provisions of the Act. We are proud to say that our law firm, SOG / Samardzic, Oreski & Grbovic, participated in the preparation and drafting of these rules as part of the Deutsche Gesellschaft für Internationale Zusammenarbeit’s (GIZ) project “Rule of Law and Enforcement” which was sponsored by the Government of the Federal Republic of Germany.
By Radovan Grbovic, Partner, and Nikola Kasagic, Senior Associate, SOG / Samardzic, Oreski & Grbovic