Applicable law to reintegration actionsin insolvency proceedings (commentary to CJUE judgment 8 June 2017 Vinlys Italia)
Abstract
In Vinyls Italy Case, the CJEU reminds that the law governing the insolvency proceeding is not a sufficient basis to revoke a contract detrimental to all creditors, if the contracting party provides proof that the law governing that contract does not allow its revocation. One of the hits of the Judgment is that this defense should not cover fraudulent practices, as well as procedural aspects shall be governed by lex fori. However, the Judgment presents serious doubts when it obviates that the determination of the law governing the contract, and its international consideration, shall be made by the Rome I Regulation and not by the European Insolvency Regulation. The reference to the lex fori is also doubtful in relation with the possible ex officio application of this defense; rather, that defense should play at the request of a party according to a literal and final interpretation of the European Insolvency Regulation.
