Vahtra tn 6: instalments and consequences of breaching settlement

The court approved an acknowledged obligation with instalments and conditional late-payment interest.

Narva linn, Vahtra tn 6 korteriühistu sought management charges and late-payment interest in expedited payment-order proceedings. After service of the payment proposal, two joint and several debtors XX and the association submitted a written settlement. The claim was transferred from Pärnu Maakohus to Viru Maakohus, which approved the settlement before starting to examine the underlying debt application and discontinued the case. The acknowledged obligation includes debt, accrued late-payment interest, a state fee of 25 euros and legal costs of 166.80 euros. Payment was deferred into twelve monthly instalments. Breach of the schedule makes the entire obligation immediately payable; upon breach, the association may also claim late-payment interest of 0.02% per day solely on the principal specified in the settlement, running from 1 January 2026. Costs outside the settlement remain with each party. The order does not establish payment of future instalments. Joint and several liability permits recovery from any debtor without recovering the same debt twice.

The settlement was approved and proceedings discontinued. Breach triggers immediate payment and conditional late-payment interest.