Recovering Payment for Supplied Materials: What Creditors Can Do Under Portuguese Law
Margarida Tempera| Lawyer
In commercial transactions, particularly within the construction, manufacturing and supply sectors, it is regrettably common for suppliers to experience non-payment despite having fulfilled their contractual obligations by delivering materials.
This situation is especially burdensome for suppliers who, having already incurred costs related to the purchase, transport and sometimes installation of the goods, are left without the agreed remuneration. For companies that depend on stable and predictable cash flow, this generates financial strain and can compromise operational continuity and long-term viability.
Portuguese law provides a fast, cost-effective and accessible solution through the injunction procedure, established by Decree-Law no. 269/98 of 1 September. This mechanism was designed to streamline enforcement in uncontested claims, reduce court congestion and allow judicial resources to focus on more substantial matters.
In response, the legislator created an accessible, extrajudicial alternative capable of facilitating the recovery of uncontested debts with minimal delay and reduced costs, while allowing judicial resources to be reserved for more complex or socially relevant disputes.
The injunction procedure enables a creditor to obtain an enforceable title without initiating a full declaratory lawsuit. With this title, the creditor may immediately begin enforcement proceedings to recover the outstanding amount, which can include the seizure of bank accounts, wages or other assets.
This procedure can be used to recover debts that are clearly defined, already due, and supported by written proof. The maximum amount of debt for recovering through this procedure is €15,000. Nevertheless, when the debt results from a commercial transaction between professionals (not involving consumers), there is no upper limit.
To initiate the process, the creditor must submit a request, including the identification details of both parties, a concise description of the contractual relationship and the amount owed. The request may be submitted in electronic format, at the Balcão Nacional de Injunções (BNI), by completing and sending an electronic form available for the lawyers and solicitors in the CITIUS computer system, which is Portugal’s centralised court information system or, in paper format, by delivery to the competent court registry, which is responsible for entering the data contained in the request into the computer system, sending it, electronically, to the BNI.
Within 5 days, the court secretary notifies the debtor, by registered letter with acknowledgement of receipt, to pay the claimant the amount requested, plus the court fee paid by the creditor, within 15 days, or to file an opposition to the claim.
If the debtor, once correctly notified, fails to either pay or file an opposition within the prescribed time limits of fifteen days, and the requested amount does not exceed fifteen thousand euros, the court registry will affix an enforceability clause to the request, which includes the imposition of legal interest and procedural costs. Interest typically accrues at a statutory rate of around four per cent per annum unless otherwise agreed.
Failure to oppose the claim within the legal timeframe precludes the debtor from later raising defences that could have been presented at that stage, and the creditor may proceed directly to execution. In practice, this process is often concluded within 30 to 45 days if uncontested.
This transforms the application into an enforceable instrument with the same legal weight as a final court judgment.
This instrument provides the legal foundation for initiating enforcement proceedings, including asset seizure, without further judicial deliberation.
That said, when the debt is acknowledged, it is strongly recommended that the debtor engage with the creditor to arrange payment, ideally through a written agreement. Payment plans may be negotiated, but should always be documented in writing to prevent future disputes.
Should the debtor file an opposition, the case is referred to a court, continuing as a standard declaratory action under civil procedure rules, converted into a special judicial procedure designed specifically for the enforcement of monetary obligations arising from contracts, provided that the amount claimed does not exceed fifteen thousand euros. This procedure is streamlined in comparison to ordinary civil litigation, as the hearing may proceed even in the justified absence of the parties or their legal representatives, and the fact that the claim is already formalised before the court often encourages settlement or payment.
To further incentivise use of the system, the legislator reduced court fees and eliminated unnecessary formal requirements.
The injunction procedure is particularly well suited to situations in which suppliers have delivered goods or materials, but payment has not been received despite clear contractual terms. When supported by written evidence such as invoices, delivery notes or correspondence confirming the transaction, the procedure offers a cost-effective and expeditious solution to recovering debts while reinforcing the principle of contractual accountability.
Debt recovery mechanisms should not rely solely on the capacity of a judicial system already under pressure. The Portuguese injunction procedure offers a practical, proportionate and legally sound alternative that promotes legal certainty and supports the stability of commercial relationships. In supplying materials or services, businesses have the right to expect timely and full payment. Where this does not occur, the law provides a swift and accessible route to redress.
