Problems in the execution of debt settlement judgment of Him Lam Nghe An Joint Stock Company

(Baonghean) - The process of enforcing civil judgments related to handling bank collateral assets still has many problems, typically the case of Him Lam Nghe An Joint Stock Company at the Vietnam Joint Stock Commercial Bank for Industry and Trade, Nghe An Branch (VietinBank).

Land and assets on land of Mr. Nguyen Van Duoc and Ms. Vu Thi Phien in Van Tien block, Hung Dung ward (Vinh city). Photo: PV

Him Lam - Nghe An Joint Stock Company (abbreviated as Him Lam Company) has business registration number 2901129080, issued by Nghe An Department of Planning and Investment on August 27, 2009, address at 104 Herman Street, Hung Phuc Ward, Vinh City. The registered business line is construction.

In 2011, at the request of the company, VietinBank Nghe An and the company signed a contract for the company to supplement capital for construction works in the province. The collateral for the debt is the value of land use rights (plot number 67; map sheet 32) with an area of ​​460 m2 (150 m2 of residential land + 310 m2 of garden land) and assets attached to the land at Van Tien block, Hung Dung ward, Vinh city according to Land Use Rights Certificate No. W679254; recorded in the land use rights certificate book No. 05027 QSDD/No. 01 QD/UB (TP) 2002 issued by Vinh City People's Committee on January 6, 2003 in the name of Mr. Nguyen Van Duoc and Ms. Vu Thi Phien. During business operations, due to poor capacity and qualifications, the management of the leaders did not cover the entire system, the company suffered losses.

After facing difficulties, the bank created many conditions for the company to balance its debt repayment sources, but the company could not do so, so the bank requested the company and the property owner to fulfill the commitment in the credit contract to hand over the property for debt collection. However, the company and the property owner did not cooperate, causing many difficulties, the bank initiated a lawsuit and requested enforcement after the judgment was issued.

On November 26, 2015, the Vinh City Civil Judgment Enforcement Office issued a decision to enforce the judgment, seize assets and transfer to the auction center the assets of Mr. Nguyen Van Duoc and Ms. Vu Thi Phien at Van Tien block, Hung Dung ward, Vinh city, the starting price for the auction of assets is 4,008,437,000 VND.

Up to now, the notice of sale of Mr. Duoc - Ms. Phien's assets has been over 1 year, the asset has reduced the selling price, the starting auction price of the asset at the present time is only 3,270,036,886 VND, but the asset has not been sold yet.

It is worth mentioning that the current selling price of the property is very suitable, even lower than the transaction price on the market and there are many customers who want to buy but still cannot handle it.

This is not the only case of trouble in the enforcement of civil judgments related to the handling of bank collateral in Vinh City.

The reason is due to the inadequacies in the provisions of the Law on Civil Judgment Enforcement. After the decision to enforce the judgment is made, if the property owner does not voluntarily enforce the judgment, the property must be seized and appraised to be transferred to the Property Auction Service Center. After there is a buyer, the enforcement agency coordinates with the auction center to hand over the seized property to the auction winner.

However, after the property is seized, it is still given to the property owner/relatives for use. Therefore, while the customer is researching the property to buy, the property owner is still in the house, so the buyer feels uncomfortable. On the other hand, according to the feedback from customers who come to see the property, the property owner has talked back and forth, causing difficulties, obstacles... so the customer does not want to buy because of fear of complications and inconvenience.

In addition, the support and coordination of relevant agencies and departments such as the People's Committees of communes, wards, police, natural resources and environment, banks and enforcement agencies are also the reasons leading to ineffective enforcement.

PV