Dismissal of the bankruptcy petition due to repayment of the debt - Reimbursement of the creditor's party costs

Facts

On 4 February 2005, Bank X. applied to the bankruptcy court of the district of Zurich for the opening of bankruptcy proceedings against Y. AG. On the day before the hearing on 12 April 2005, the debtor paid the debt, interest and costs. The bankruptcy judge then dismissed the bankruptcy petition. Bank X. appealed against this decision, which was rejected by the High Court and the Court of Cassation of the Canton of Zurich. Bank X. then filed a civil law appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court concluded that under Art. 172 para. 3 of the Federal Debt Enforcement and Bankruptcy Act, the debtor must also reimburse the creditor's party costs for the bankruptcy proceedings in addition to repaying the debt, interest and costs, in order to avert the bankruptcy. The…