" ... It's important to understand, as soon as Yigal decided that he wasn't paying and all the checks, I said take them all out, there's no money in the account, everything will come back. We also went to their warehouses and saw that everything was a mess, that they were stealing goods there, and that people were overloading them right and left. We realized that the story was over. On the advice of my lawyer, I took the checks that I had accumulated, because each time we made new deployments, we took all the checks and deposited them in the bank, so that he would be limited, yes, he deserved it. I admit. He deserves it. Let him pay." (See p. 63, paras. 10-15 of the minutes of the hearing of April 19, 2023).
These statements of the plaintiff's manager aroused Discomfort Very much, since the purpose of submitting checks for execution is not an act of remuneration that "deserves" or "does not deserve" the debtor, and it should have been done in good faith and only for the purpose of collecting an existing debt, and to the extent of collecting that debt, and that only.
- On the other hand, and contrary to the plaintiff's claims, this is not an incident in which Paragon was not entitled to deposit checks held by it, subject to the fact that there would be no over-collection, nor could it be ignored that the check was deposited after the plaintiff violated, time after time, the arrangements reached with him.
- Above all, it should be added and clarified, explicitly, that I do not find that the deposit of the checks amounted to a breach of the (alleged) concession agreement, which is the subject of the claim before me, but rather an attempt to collect a debt.
All of this is where it has not been proven that the alleged concession agreement included a commitment by Paragon to add and sell goods to those who do not pay for it, or that it was agreed between the parties to continue and maintain a business relationship, without a time limit, while one of the parties to the same agreement has a balance of debt estimated at millions of shekels.