The huge lawsuit in the amount of NIS 2.5 million was rejected: "Inflated and disproportionate"
A company against which a liquidation petition was filed for a debt of NIS 17,000 claimed that the petition caused it enormous damages and sued for NIS 2.5 million.
The Tel Aviv District Court dismissed the claim and ruled: The request was justified
Legal Zap system, in conjunction with Legal Zap
20/01/2022
Thursday, 20 January 2022, 16:00 Updated: 16:09
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Lawyers deal with lawsuit (Photo: ShutterStock)
A request for the liquidation of a company filed by two companies against a third company for non-payment of a verse debt of NIS 17,000 was not an idle proceeding.
This is what the Tel Aviv District Court recently ruled.
This, as part of a dispute between the companies over investment in a power plant in the Golan Heights.
In a NIS 2.5 million lawsuit filed by the company against which the liquidation petition was filed, it claimed that the liquidation petition caused severe damage to its credit rating and irreversible damage.
The court dismissed the claim and ruled that it was inflated and disproportionate.
The company claimed an idle proceeding that caused enormous damage.
The background to the ruling concerns legal proceedings that have been going on for several years between the companies regarding the investment in a power plant in the Golan that is powered by wind turbines.
As part of the proceedings, one of the companies was ordered to pay legal expenses of NIS 17,000 to the other two companies.
A little less than two months later, after the company did not repay the debt, the two companies filed a liquidation petition against it in court.
Following the filing of the application and on the recommendation of the then president of the district court, the Honorable Justice Eitan Orenstein, the company repaid the debt two weeks later and the liquidation application was canceled
. Shekel to the Tel Aviv District Court.
In the lawsuit, the company claimed that the companies had committed the "accessible" tort against it.
The
damages caused to her.
In the written defense, the defendant companies rejected the allegations against them.
The defense brief, filed on behalf of one of the companies and managed through attorney Paz Yitzhaki-Weinberger, argued that this was an inflated and disproportionate lawsuit, that the liquidation petition was proper and that the company was not harmed as a result
. Explains Adv. Yitzhaki-Weinberger.
"Our main contention was that the company was not harmed as a result of the proceeding, and that even if it were harmed - it did it itself because it could repay the debt at any stage."
The court, as stated, dismissed the claim and ruled that it was not an idle proceeding. According to the ruling, the filing of the liquidation petition was proper and no wrong was committed.
The court further ruled that no damage had been proven as a result of the act and that the company itself was liable, as it was indifferent to the debt and did not pay it and even delayed in this matter. The court explained that this was not an idle proceeding since in the end it did indeed bear fruit: the company kindly granted to repay the debt.
However, before the rule of law, the court does not charge the plaintiff with expenses despite the rejection of the giant claim in full, for all its components. The court held that in this case the companies should have exhausted the enforcement proceedings first, rather than rushing and resorting to liquidation proceedings. In the bottom line, the huge claim of NIS 2.5 million was rejected.
The insight emerging from the judgment is that it is not advisable to rush and file claims in the court for inflated amounts detached from the ground of reality, but to go to court only in real cases where actual damage has been proved and the causal link between the act and the damage.
On the other hand, one must of course be careful to pay debts on time.
In this case the payment of the debt by the company would have made the filing of the liquidation application unnecessary and impossible, saving all the unnecessary hassle and all the management of the procedure.
Need legal assistance in the civil-commercial field or in the field of insolvency?
Paz Yitzhaki Weinberger will be happy to assist you - you can contact us here
Phone: 077-2303726 Article
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courtesy of Zap Legal
The information presented in the article does not constitute legal advice or a substitute for it and does not constitute a recommendation to take proceedings or avoid proceedings.
Anyone who relies on the information in the article does so at his own risk
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