HISTORICAL DEVELOPMENT OF AUCTIONS IN BANKRUPTCY PROCEDURES: FROM “BONORUM VENDITIO” TO THE FORMATION OF THE UKRAINIAN MODEL OF COMPETITIVE SALE

Abstract

The article presents a comprehensive study of the historical development of the legal regulation of the sale of debtor’s property within the framework of bankruptcy procedures, starting from classical Roman law and the institution of bonorum venditio to the modern Ukrainian model. The main attention is paid to the analysis of the key stages of the evolution of the mechanisms for the sale of debtor’s property, which influenced the formation of approaches to the organization of auctions in bankruptcy procedures. The historical evolution of the institution of bonorum venditio established in Roman law is separately studied, taking into account the peculiarities of certain eras. Roman law approved the basic principles of the forced sale of property through the procedure of bonorum venditio, which consisted in the sale of the debtor’s property in favor of creditors. Further, in medieval Europe there was a certain decline in the development of the institution of auctions in bankruptcy, but already in modern times the formation of systematized codes and special laws (in particular, the Napoleonic Code) consolidated the form of auction as the main form of property sale in bankruptcy procedures. Attention is paid to how these approaches influenced the formation of modern Ukrainian bankruptcy legislation, where the principle of mandatory open bidding for the sale of debtor’s property has been preserved. The article emphasizes that the evolution of the institution of auction sale in bankruptcy testifies to the continuity of the desire of legislators of different eras to ensure a balance between the protection of the rights of creditors and the debtor, taking into account certain features of such an era. Historical experience proves the effectiveness of the principles of publicity, openness of the property sale process, which have been preserved and improved in Ukrainian law. The conducted research has practical significance for understanding the basic principles and ideas of an auction for the sale of debtor’s property in bankruptcy procedures, as well as for a deeper understanding of the nature of the auction process. Analysis of recent research and publications: To date, the topic of the evolution of property sales in bankruptcy cases is not widely studied in Ukrainian scientific literature. However, some aspects of this topic were covered in the works of scholars dealing with the sale of debtor’s property in bankruptcy cases: Yu. Tyurina, O. Boyko, R. Polyakov.