The European Commission for the Efficiency of Justice

Information concerning the candidate (institution / organization)

Name: Court Administration Republic of Latvia
Address: 6 Antonijas Street, Riga, LV-1039
Country: LATVIA
Tel.: +371 67063840
E-mail: kanceleja@ta.gov.lv

Represented by:

First name and surname: Mr Edvins BALSEVICS
Function: Director of Court Administration
Tel: +371 67063801
E-mail: Edvins.Balsevics@ta.gov.lv

(Application submitted by Ms Dace Ezeriete, Project Manager of Project Management and International Cooperation Unit, Dace.Ezeriete@ta.gov.lv

Initiative

Title: SITE OF ELECTRONIC AUCTIONS

Date of introduction of the application form: 10.05.2017

Brief description of the initiative

As of 1 July 2015 Executive Case Register module - Electronic Auction Site (hereinafter - the Site) commenced the work, providing the sworn bailiffs with a possibility to post announcements on auctions of the immovable property, to perform examination of the person for participation in the auction and authorisation thereof, to hold the auction, to send notifications to participants of the auction as well as to perform other activities related to organisation and course of the auction.
In its turn, since 1 January 2016 the Site provides with a possibility for administrators of the insolvency proceedings to post announcements on auctions of the immovable property, and since December 2016 also auctions of aggregation of property, consisting of the immovable property and movable property.
The Site is established with a purpose to decrease dishonest or unlawful action of persons during the auctions of the immovable property and to make the course of the auction more convenient and economical, thus providing that even bigger number of participants will participate in auctions and it is possible to recover bigger amount of claims during auction for covering of credits, because when organising auctions of the immovable property in presence there were cases established, when participants of other auctions were affected as a result of coordinated activities between dishonest persons. Such practice caused harm not only to the interests of creditors, but also caused a negative perception on the activities performed by sworn bailiffs and administrators of the insolvency proceedings, as well as preventing from participation of honest persons in auction.
The key functions of the Site is to ensure auction of the immovable property in an electronic way, maintaining the process of auction of the immovable property stipulated in the Civil Procedure Law and Insolvency Law, to ensure uniform electronic environment for auctions and a possibility to organise and participate in auctions, regardless of the actual place of location of the person, as well as to ensure link with the sworn bailiffs record-keeping system - Executive Case Register and authentication by using the uniform login module of the state and local governments service portal www.Latvija.lv www.latvija.lv.
In order to participate in auction, a person shall register with the Site’s users register. A person may register with the Site him of herself by identifying via one of the means offered at www.latvija.lv (eID card, electronic signature smart card e-ME or online banking). In case of not having any of the above mentioned identification means - by turning in presence to the most convenient sworn bailiff or administrator of the insolvency proceedings and presenting a valid personal identity document. Any natural or legal person - both, a resident or non-resident - may register at the Site.
24 hours after the closure of auction, the system sends to the participant of the auction a statement of auction and information regarding further activities to be performed. A statement of auction is prepared electronically and shall be valid without a signature of the organiser of the auction.
In order to reduce to the minimum, the cases, when auctions have to be terminated due to interruptions in the operation of the Site, amendments to the regulatory enactments were made in 2016, stipulating that the time of closure of auction shall be prolonged as a result of interruption in the operation of the Site until 13:00 o’clock of the next working day. Therefore, improvements are made on the Site, providing for automatic prolongation of the time of auction due to interruptions in the system, in accordance with regulatory enactments.
Key advantages achieved, when organising auctions on the electronic environment are - fair competition, anonymity, broader access, bigger recovered amount for creditors and convenient authorization and payment of invoices by using authentication and uniform service payment system www.latvija.lv (payment module).
Currently the Site ensures not only publication of auction announcements, but also other services:
1) service “My executive cases” for a registered Site user - a possibility to receive information free of charge from the Executive Case Register regarding executive cases, where the particular person is a participant - registered as a debt-collector or a debtor;
2) paid service “Information monitoring in the Executive Case Register regarding executive cases of natural and legal persons and amount of debt thereof by sending the requested information electronically”;
3) paid service “Automatic bidding step of auction”;
4) paid service for receipt of information in e-mail regarding results of auction or the fact of offering a higher price;
5) service to administrators of the insolvency proceedings regarding receipt of information online from the Executive Case Register regarding executive cases of an insolvent person.
6) Open data regarding auctions registered on the Site.
Besides, supplementations were introduced on the Site for convenience of users, providing with an opportunity for participants of auctions to fill in a submission on the Site regarding automatic repayment of the participation fee of auction and fee for auction's agent, thus ensuring more convenient and faster repayment of paid monetary funds.
9704 auctions (9028 of sworn bailiffs and 676 of administrators of the insolvency proceedings) were organised on the Site between 1 July 2015 and December 2016.
In 2015 the Site was visited 834 thousand times, while in 2016 the Site was visited 6.33 million times, which confirms the fact that the interest of persons regarding auctions of the immovable property is increasing.
Upon implementing the electronic auctions, the increase of amount of auctions from the initial price constituted 26% in 2015, but in 2016 it constitutes already 33%.
While, according to ROI calculation the investment returns in electronic auctions reached 58% in 2016, but 125% - in 2016. The planned investment returns in 2017 is 111%.
Upon further development of the Site it is planned to introduce auctions of the movable property, translation of the Site in several foreign languages, reflection of the objects of auctions of the immovable properties on the interactive map and link of the Site with the State Unified Computerized Land Register that will enable to receive a service of looking into the true copy of the immovable property division.

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