Facts
In the context of a real estate lien realization procedure, Bank X. requested the Enforcement Office of Geneva to proceed with the auction sale of plot no. 988, located in an agricultural zone. On July 25, 1995, the Agricultural Land Commission authorized the division of the property and set the maximum legal price of the agricultural part at CHF 10/m2. On December 16, 1996, during the auction, the enforcement officer informed Bank X. that its bid could only be accepted if no agricultural operator made an offer. Among the four persons who presented themselves in this capacity and bid up to the legal price, he retained those who provided sufficient collateral and a certificate issued by the Geneva Chamber of Agriculture certifying their qualifications as farmers. He then proceeded with a draw, which designated R., who was given a ten-day deadline to request authorization from the Agricultural Land Commission to acquire the property.
Bank X. requested the annulment of the auction sale, on the grounds that it could not be denied the right to overbid. The Supervisory Authority for Debt Collection and Bankruptcy Offices of the Canton of Geneva rejected this complaint on June 4, 1997.
Bank X. appealed to the Debt Collection and Bankruptcy Chamber of the Federal Tribunal, essentially concluding for the annulment of the auction of December 16, 1996.
Considerations
The Federal Tribunal upheld the appeal and annulled the auction. It considered that, according to Articles 67 and 68 of the Federal Act on Rural Land Law (LDFR), any person can participate in the auction, without having to demonstrate that they would be authorized to acquire, since this point must be dealt with after the…