The Supreme Court ruled that creditors may demand the banks to return everything the banks had collected under the loan contracts declared null and void.


In the resolution adopted on February 16 the Supreme Court decided that the creditors who repaid the loan in performance of the contracts declared null and void is entitled to a claim the return of the repaid funds as an undue payment (Art. 410 § 1 in conjunction with Art. 405 of the Civil Code), regardless of whether and to what extent he is the debtor the bank for the return of an unduly received loan amount.

As the rapporting judge, Roman Trzaskowski, pointed out, the interpretation of art. 410 of the Civil Code is crucial for the problem. A performance is undue if the person who makes it is not under any obligation or is not under any obligation towards the person to whom he makes the performance, or if the basis of the performance has ceased to exist or the intended purpose of the performance is not attained, or if the legal act binding him to make the performance is invalid and does not become valid after the performance is made.

The Supreme Court assumed that the general principles of Polish law regarding the return of undue payments are sufficient. According to the art. 405 of the Civil Code undue performances should be returned. However, the maturity of this kind of obligation depends on whether the debtor has been called on to make the performance.

The Supreme Court also stated that the so-called “ balance theory” cannot be legally justified – since the contract concluded by the parties to the trial has been deemed null and void, the borrower has the right to demand the return of the amounts already provided even if he had not yet repaid the loan’s principal amount in PLN.

Additionally, at the hearing scheduled on March 25, 2021, the Supreme Court is to settle the question of law presented by the President of the Supreme Court regarding legal loopholes left in the loan agreements after determining that some provisions are null and void – whether it is possible to  perform such a contract without such provisions, and the estimation of the bank’s remuneration for operating bank’s capital.

More on the resolution of February 16, 2021 –

More on legal questions of the President of the Supreme Court –