The judgment deals with the content of Notice type IA in relation to the specification of the amount due and the interest.
Τhe recent decision dated 11/6/2024 in Civil Appeal 83/2019 deals with the right of the mortgagor to know precisely the amount due and the amount of interest on Notice type IA.
In this case, Notice type IA, in addition to the amount due and the interest, stated the following: “at an annual variable interest rate (1 month Euribor plus margin 2,25 per cent per annum) with capitalization of interest once from 1/4/2018“. It was argued at first instance that the said notice did not comply with the form of the Second Schedule of The Transfer and Mortgage of Property Law Ν. 9/1965 (the Law 9/65) as it did not indicate the amount due, and the amount of interest and thus the applicant requested the notice to be set aside. The application/appeal was dismissed at first instance.
Subsequently, an appeal was filed against the judgment on the same ground as mentioned at first instance procedure.
The decision of the Court of Appeal is interesting since it was not unanimous and there were different opinions in regards to the matter.
The majority of the Judges adopted a more formalistic approach and emphasized that there should be reference and specification to the amount due, to the amount of interest (instead of its description) and to the amount of expenses. Therefore, they concluded that in this case the Bank did not comply with those requirements. Accordingly, it was held that Notice type IA did not meet the required form and content of the Law 9/65 and consequently an order was issued to set aside the Notice type IA.
On the other hand, the minority of the Judges argued that there is no clear requirement as to the manner the interest is expressed, concluding that the description of the interest meets the requirement of the form and content of the of the Law 9/65, since it includes the amount due plus interest which is described with the necessary details for its calculation.
In conclusion, it becomes clear that the auction notices must be fully consistent with the form of the Law 9/65 and they should specify the amount due and the amount of interest without any derogations.
By: Margarita Avraam
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