🇭🇺 Hungary

1. The status of digitalisation in enforcement of the judgments under the regulation in

question (a) under EOP Regulation, and (b) under EEO Regulation

under both EOP and EEO Regulation Act CIII of 2023 on the digital state and certain rules for the provision of digital services (2023. évi CIII. törvény a digitális államról és a digitális szolgáltatások nyújtásának egyes szabályairól) took effect on 1 July 2024 in Hungary. This act provides a unified framework for digital administration in the digital space by organizations subject to providing digital services or assuming such services and for the digitalization of private law relationships. Section 9 of the aforementioned act lists the court, the notary public and the court bailiff among the bodies subject to providing digital services. Pursuant to Section 22(1) of the Act on the Digital State, documents in the digital space are created electronically. Exceptionally, documents may be issued on paper. (2) During electronic administration, the organization providing digital services a) prepares a certified electronic copy of the document received on paper or has one made, b) makes a certified paper-based copy of a decision issued electronically or has it turned into a certified paper-based document. (3) The probative force of electronic documents is the same as that of their paper-based counterparts a) if a certified copy is made of the paper-based document in accordance with the rules of generating electronic counterparts of paper-based documents, b) if a certified copy of an electronic document is made pursuant to the rules of transforming an electronic document into a paper-based document. The following rules are governing for the application of both regulations. The ePost service introduced by the new legislation is expected to be a step forward in the rules governing document service. The ePost service, available as a digital framework service, provides an electronic storage space corresponding to the electronic delivery service address provided for the user, it allows the sending of electronic documents, additionally confirms the success or failure of the delivery and allows the download of the delivered document by the receiving party. The application of the specific provisions of the law are carried out gradually, the provisions on the ePost service are applicable as of 1 January 2006. The creation of the Hungarian enforcement law connected to this is still underway.

Procedural aspects

2. Competent court or authority and procedure involved in the enforcement (a) under EOP

Regulation, and (b) under EEO Regulation

a) Under EOP Regulation In Hungary, enforcement of European Orders for Payment (EOP) is governed by the Judicial Enforcement Act and the Act on Order for Payment Procedures, with the Code of Civil Procedure applying as background law. A European order for payment issued in another Member State is enforced under the same substantive conditions as one issued domestically, namely through the issuance of an enforcement sheet. The key distinction concerns the authority ordering enforcement. Where the European order for payment was issued in another Member State, enforcement is ordered by the district court of the debtor's domicile or registered seat (or, in Budapest, the Central District Court of Buda). By contrast, where the European order for payment was issued by a Hungarian notary, enforcement is ordered by the issuing notary. If that notary is unable to act, an acting notary is appointed by the President of the National Chamber of Notaries. Upon application by the creditor, the competent authority must order enforcement by issuing the enforcement sheet within 15 days. Applications for enforcement may be submitted in paper form or electronically, using standardised forms provided by the Hungarian Chamber of Civil Law Notaries, and electronic submissions must be sent to the notary's secure official electronic gateway. b) Under EEO Regulation For the European Enforcement Order (EEO), enforcement is likewise based on the issuance of an enforcement sheet, but competence lies with the district court of first instance. The competent court is determined by the debtor's domicile or registered seat, or, failing that, by the location of the debtor's enforceable assets or branch; in Budapest, jurisdiction lies with the Central District Court of Buda. The same court attaches an enforcement clause to foreign authentic instruments certified as European Enforcement Orders. In addition, Hungarian courts of first instance are competent to issue certificates attesting the lack or limitation of enforceability and replacement certificates for court judgments and settlements, while for authentic instruments these certificates are issued by the district court of the issuing authority at the creditor's request.

3. rules on service In Hungary, service of documents in European Order for Payment (EOP) proceedings is governed by national law, notably the Act on Order for Payment Procedures and the Code of Civil Procedure, supplemented by EU instruments on cross-border service. A key feature is that bailiffs are excluded from EOP service: European orders for payment are not served by bailiffs, and general civil procedure rules apply instead. Service with proof of receipt under Article 13 of the EOP Regulation is mainly carried out through the postal service or electronically. Paper-based European orders for payment are served by registered mail with acknowledgement of receipt via the Hungarian Postal Service. Parties subject to electronic administration receive service electronically through official digital platforms (business gate, client gate or official gate). Although Hungarian law allows personal collection of documents at the court office after identity verification, this option is rarely used in practice. Service corresponding to personal service by a bailiff is not applicable, as bailiff service is expressly excluded in EOP procedures. For cross-border service within the EU, service is primarily effected by the notary public using international registered mail with acknowledgement of receipt or through interinstitutional service, whereby the notary contacts the designated receiving authority in the Member State of destination under Regulation (EU) 2020/1784. Service costs and any required translations must be paid in advance by the claimant. For service outside the EU, service follows applicable international treaties, notably the Hague Service Convention or, where relevant, the 1954 Hague Convention on Civil Procedure, with the involvement of the Ministry of Justice or Ministry of Foreign Affairs as required. For the European Enforcement Order (EEO), Hungarian law does not provide special service rules. Accordingly, the same service regime applies as for EOP procedures, based on Sections 135-136 of the Code of Civil Procedure. Judicial documents are normally served by postal service, with the possibility of personal collection at the court office. Where a party is represented, service is made on the agent or statutory representative; for legal persons, service is effected at their registered seat or, failing that, on their statutory representative.

4. Language of the certificate and documents to be appended

a) Under EOP Regulation In Hungary the language of the enforcement of European orders for payment deemed enforceable in another Member State shall be Hungarian, therefore a certified translation of the enforceable European order for payment issued in the other Member State must be submitted to the competent court together with the enforcement application. The application must be made on a form. The court shall decide on the enforcement application through the application of the general rules of the Judicial Enforcement Act. In the case of a European order for payment issued by a Hungarian notary, the notary issues the G form in Hungarian and sends it to the claimant together with the certified copy of the European order for payment (E form) issued in Hungarian, so the issue of translating the documents does not arise.

b) Under EEO Regulation Pursuant to Section 2b) of Government Decree 2057/2005. (IV. 13.), the accepted languages for the completion of a European Enforcement Order are Hungarian and English. It is sufficient to attach the original decision in the language it was composed in. In contrast, although the certificate is issued in the original language of the decision, the court of the enforcing state may request translation.

5. enforcement fees a) Under EOP Regulation The person requesting enforcement must pay a fee as set out in Section 55(1) of the Act on Order for Payment Procedures for the submission of the application for enforcement of a European order for payment. The fee is 1% of the fee base, but no less than HUF 8,000, and no more than HUF 150,000, where the fee base is the amount of the payment at the launch of the proceedings less contributions. The fee is payable in full to the notary in cash or in cash deposited to a payment account selected by the party (in such cases a receipt of the payment must be attached to the enforcement application), or by bank transfer or credit card transfer.

b) Under EEO Regulation Based on Sections 57t) and u) and Section 103(2)c) of Act XCIII of 1990 on Fees (1990. évi XCIII. törvény az illetékekrol, hereinafter: Act on Fees), the issuance of a European Enforcement Order Certificate is exempt from fees in Hungary. The application for enforcement, however, entails a court fee depending on the amount the enforcement is requested for. These court fees shall be paid in line with the Act on Fees which is applicable for the enforcement of Hungarian decisions as well. In enforcement procedures, the fee base is the value of the subject-matter of the proceedings at the time of the opening of the proceedings, less any contributions, unless provided otherwise in law. [Section 30(1) of the Act on Fees] An interest receivable on a pecuniary claim that is enforced together with the pecuniary claim shall not be included in the fee base even if the claimant enforces another interest claim on the interest claim concurrently with the interest claim. On the fee base, the rate of the fee is 1%, but no less than HUF 5,000, and no more than HUF 350,000. [Section 42(1)d) of the Act on Fees].

6. Refusal, stay, or limitation of the enforcement procedure under the regulation in question in

the intended Member State (a) under EOP Regulation, and (b) under EEO Regulation

a) Under EOP Regulation

If the Member State of enforcement is Hungary, the defendant may request the withdrawal of the enforcement sheet in accordance with Section 211(3)b of the Judicial Enforcement Act with reference to Article 22 Section (1) of the Regulation on European order for payment procedures. The court ordering the enforcement decides on the application, i.e. the notary issuing the order in the case of enforcement based on a European order for payment issued in Hungary, and the district court of the court of the debtor's domicile in the case of enforcement of a European order for payment issued in another Member State (in Budapest the Central District Court of Buda) in line with Section 16(i) of the Judicial Enforcement Act. Pursuant to Section 212(1) of the Judicial Enforcement Act, the court ordering the enforcement may, at the request of any of the parties, withdraw the enforcement sheet, and cancel the enforcement clause based on the bailiff's report or on its own initiative at any time. (2) The order must be served to the parties, who have the right to lodge an appeal against it. The Hungarian legislator has not laid down any special provisions for applications requesting the rejection of an enforcement based on performance by the defendant. In case of enforcement underway in Hungary, an application as per Article 23 of the Regulation on European order for payment procedures is adjudicated by the court implementing the enforcement [Section 48(8) of the Judicial Enforcement Act]. If the implementing court finds the debtor's application well-founded, it shall decide to apply a limitation to protective measures within the meaning of Article 23(a) by suspending the enforcement. [Section 48(8) of the Judicial Enforcement Act]. This stay, however, has a specific scope, since in the case of the enforcement of a pecuniary claim, the stay covers the garnishment of the debtor's wages, the preparation of a notice of sale of movable and immovable property, the sale of the property and the payment of the proceeds of the enforcement; other enforcement acts must be implemented during the limitation period as well [Section 50(5) of the Judicial Enforcement Act]. The Judicial Enforcement Act does not explicitly regulate the making of enforcement conditional on the provision of a security, so if the enforcement court granting the debtor's application decides to apply this legal consequence, it may determine the security at its own discretion, directly on the basis of the Regulation. 14

b) Under EEO Regulation

Pursuant to Section 31/C(7) of the Judicial Enforcement Act, upon request, the court rectifies or withdraws a European Enforcement Order Certificate in accordance with Article 10 of Regulation (EC) No 805/2004; the decision on the rectification or withdrawal is served to the parties who may challenge the decision. If the rectification or withdrawal was carried out, the debtor may request the stay or limitation of the enforcement in the issuing state. In Hungary, it can be issued by the court of first instance in the case of a decision or court settlement, or by the court of the place where the authority issuing the authentic instrument is located. 15 In accordance with Section 48(8) of the Judicial Enforcement Act, the court implementing the enforcement adjudicates the debtor's submission for the stay or limitation of the enforcement. If the court stays the enforcement at the request of the debtor, in the case of the enforcement of a pecuniary claim, the stay covers the garnishment of the debtor's wages, the preparation of an announcement on the sale of their private property and real estate, the sale of their private property and the payment of the amounts received during the enforcement; other enforcement acts must be implemented during the limitation period as well. At the reasoned request of any of the parties, the court reviews the justification for maintaining the stay which it ordered [Section 50(5)-(6) of the Judicial Enforcement Act]. Refusal of the enforcement in Hungary is carried out by withdrawing the enforcement sheet or cancelling the enforcement clause as per Section 211 of the Judicial Enforcement Act.

7. Availability of any legal aid for guidance on the enforcement procedures under the

regulation in question in the intended Member State (a) under EOP Regulation, and (b) under EEO Regulation In Hungary, legal representation is in principle mandatory in civil litigation, unless an Act provides otherwise. An important exception applies to cases falling within the subject-matter jurisdiction of district courts, where legal representation is not mandatory, including related appeals and retrial procedures. Courts are required to inform parties of the obligation to appoint a legal representative, the possibility of being represented by a legal aid lawyer, and the consequences of acting without representation. Where a party appears without a lawyer in proceedings requiring mandatory representation, the court must grant an appropriate time limit to arrange representation and may postpone or repeat hearings if necessary. Hungarian law provides several forms of legal aid, mainly through cost deferral or exemption, rather than automatic appointment of counsel. Under the Act on Order for Payment Procedures, natural persons who are unable to pay procedural costs due to their financial situation may request partial or full cost deferral. This may cover procedural fees for applying for a European Order for Payment, advances on enforcement costs, and court fees related to appeals or the transformation of the procedure into ordinary litigation. Full cost deferral is granted where the applicant's net monthly disposable income does not exceed 30% of the national average gross monthly income and the applicant has no assets. Partial or full deferral may also be granted where the anticipated costs would impose a disproportionate burden relative to the party's income and assets. Certain procedural acts are exempt from fees, such as applications for rectification or supplementation of decisions, and reduced fees apply where the claimant withdraws the application for an order for payment before it is issued. Applications for legal aid may be submitted together with the application for a European Order for Payment or, for defendants, together with the submission contesting the claim. The notary decides on legal aid requests at an early stage of the procedure, without hearing the opposing party. Decisions refusing or revoking legal aid may be appealed before the competent district court, and once granted, legal aid remains effective if the case proceeds to litigation.

8. Critical assessment of the enforcement procedures under the regulation in question in the

intended Member State (a) under EOP Regulation, and (b) under EEO Regulation The national regulation on electronic communications, including the regulation on delivery, is currently being reformed and is expected to change significantly over the next two years. It will lead to progress in the application of both regulations.