Question:
In the case where a business or cooperative is required to initiate bankruptcy proceedings and must repay debts according to a legally effective civil judgment that has been annulled by the director and referred for re-examination, should it be included in the bankruptcy case for resolution or separated and resolved through a civil case?
Answer:
In this case, the Lower Court assigned to re-examine the civil case must temporarily suspend, suspend, and transfer the case file to the Court currently conducting the bankruptcy proceedings for resolution, as stipulated in Article 41 and Article 71 of the Law on Bankruptcy.
Question:
In the case where an appeal is filed against the first-instance judgment and one of the parties involved in this case, which is a business or cooperative, has been issued a decision by another Court to initiate bankruptcy proceedings, should the appellate Court continue to handle the appeal according to the provisions of the Civil Procedure Code or issue a decision to suspend the case and include it in the bankruptcy case for resolution?
Answer:
Clause 2, Article 41, and Clause 2, Article 71 of the Law on Bankruptcy dictate that if the first-instance Court is resolving the civil case, it must issue a decision to suspend the case, and if the appellate Court is handling it, it must also issue a decision to suspend the case.
When a party appealed a civil case, and one of the parties involved unable to pay is a business or cooperative, and another Court issued a decision to initiate bankruptcy proceedings, it necessitates distinguishing whether the insolvent business or cooperative assumes the role of the plaintiff, defendant, or a party with related rights and obligations in the case. If the business or cooperative unable to pay is the plaintiff or defendant in the civil case, the appellate Court shall continue to adjudicate the civil case. Subsequently, the appellate Court shall issue a decision to suspend the resolution of the civil case and transfer the case file to the Court currently conducting the bankruptcy proceedings for further resolution, as stipulated in Clause 2, Article 72 of the Law on Bankruptcy.
If a party involved, who requested to declare bankruptcy, holds related rights and obligations, the civil case does not directly sue them. Instead, the determination of their rights and obligations relies on the dispute between the plaintiff and the defendant, following the principle. Therefore, in this case, the Court still resolves the civil case according to general procedures. In this case, the effective judgment that determines their rights and obligations will transfer to the bankruptcy proceedings, making the person with rights or obligations a creditor or debtor in the bankruptcy case.
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