The auction of a luxury yacht in Cannes. The seizure of an Airbus A320 on the tarmac at Roissy airport. These operations are governed by special rules. Transport goods - ships, inland waterway vessels and aircraft - represent considerable assets whose compulsory sale requires a procedure distinct from that applicable to ordinary movable property.
The dedicated legal framework
The Transport Code provides a framework for these specific procedures. Unlike traditional seizures of movables governed by the Code of Civil Enforcement Procedures, the seizure and sale of ships, boats and aircraft follows a special regime.
In the case of ships, articles R. 5114-15 to R. 5114-19 of the French Transport Code govern protective seizure, while articles R. 5114-20 to R. 5114-34 govern enforcement seizure. Distribution of the price is governed by articles R. 5114-35 to R. 5114-46.
Inland navigation boats are subject to a similar regime defined in articles R. 4123-3 to R. 4123-13 for seizure, and R. 4123-14 to R. 4123-24 for distribution of the prize.
Following decree no. 2023-1008 of 31 October 2023, aircraft are now subject to articles R. 6123-1 to R. 6123-17 of the same code.
List of registered creditors
A critical stage is the precise identification of creditors. The enforcement judge plays a central role here.
If there is more than one creditor, the pursuing party applies to the court for an amicable distribution of the price. The judge then notifies the registered and preferential creditors of a request for a statement of claims.
A word of caution: the statements of account must be submitted in the form of legal submissions within a fortnight. If this is not done, the creditor loses the benefit of his security for the distribution. However, they may be entitled to the distribution of any balance.
For aircraft, the procedure is slightly different. The winning bidder must pay the price to the Caisse des Dépôts et Consignations within three days, then within five days submit a request to the judge who will set the distribution hearing.
Systematic price distribution
The distribution process is divided into several phases:
- Drawing up a distribution plan by the enforcement judge, notified to the registered creditors and the debtor
- Possible challenge phase within a fortnight (by legal document with supporting documents)
- Project approval - If no objection is lodged within the time limit, the pursuing party shall request that the enforcement order be issued
For aircraft, in the event of disagreement between creditors, a statement of claims and counter-claims is drawn up. Each creditor files a request for collocation with the Registry within eight days.
The resulting judgment is not subject to opposition, and the time limit for appeal is reduced to ten days from the date of service.
Respecting the order of creditors
The most technical aspect concerns the classification of creditors.
If the proposed distribution is contested, the enforcement judge will summon the parties, rule on the disputes and draw up the final statement of distribution. There is one notable difference: an appeal against this ruling has suspensive effect, which differs from ordinary law.
Caisse des Dépôts must make the payment within one month of being notified of an enforceable copy of the decision approving the statement of distribution.
The firm regularly receives cases where the hierarchy of liens poses practical difficulties. For example, in the case of a ship, seafarers' claims for wages, legal costs, harbour dues and insurers' claims often take precedence over conventional mortgages. This hierarchy may come as a surprise to financial institutions.
Purge of mortgages and liens
The procedure concludes with an essential step for the successful bidder: the purging of mortgages and liens. At the buyer's request, the enforcement judge confirms that the mortgages and liens have been purged and orders the cancellation of the encumbrances on the property.
This deregistration definitively releases the property and secures the acquisition. It represents a fundamental guarantee for the purchaser, who obtains a title deed that is free of all prior rights in rem.
Essential support
The complexity of the rules applicable to forced sales of ships, boats and aircraft makes it essential to be assisted by a specialist lawyer. Whether you are a creditor seeking to recover your debt or a debtor facing seizure and sale proceedings, legal expertise can make the difference between an orderly distribution and lengthy, costly litigation.
The firm works closely with stakeholders to optimise their legal positions in these technical proceedings. Please do not hesitate to contact us for a preliminary analysis of your situation.
Sources
- Transport Code, articles R. 4123-3 to R. 4123-24 (inland waterway vessels)
- Transport Code, articles R. 5114-15 to R. 5114-46 (ships)
- Transport Code, articles R. 6123-1 to R. 6123-17 (aircraft)
- Decree no. 2023-1008 of 31 October 2023 on the sixth regulatory part of the Transport Code
- Guinchard report, proposal no. 8, June 2008
- Martin, R., & Bour, R. (2024), Distribution des deniers : meubles, aéronefs, bateaux, navires, Répertoire de procédure civile
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