Approval of an instalment agreement for debt owed to an association

The association and two debtors agreed on instalments and payment of current invoices. The court approved the settlement and closed the case without establishing actual compliance with the schedule.

Narva linn, A-A. Tiimanni tn 10 korteriühistu (now — Narva linn, Soldina tn 10 korteriühistu) sought payment from two individuals identified as XX. After their objections, the case was transferred from payment-order proceedings to Viru Maakohus. The participants submitted an agreement acknowledging a debt comprising principal, late-payment interest and costs, to be paid in instalments over six months. Current invoices from the February 2022 invoice onward remain payable in addition to instalments on the old debt. For delay, the agreement provides daily late-payment interest of 0.022% on the unpaid principal. The act does not provide for acceleration of the entire debt. The court found no conflict with law or good morals, approved the settlement and discontinued proceedings. Costs were dealt with as agreed, with no further reimbursable costs. The court explained the availability of enforcement if the agreement is breached and the bar on a new action between the same parties about the same subject. Approval of the schedule does not establish that payment has been made.

The instalment settlement was approved and proceedings discontinued. Current invoices remain separately payable and agreed late-payment interest applies to delay. This act does not establish actual compliance with the schedule.