The issue of whether the court handles the consequences of invalid transactions and, if so, the methodology it employs for resolution, is a matter of significant importance within the legal landscape. This inquiry delves deeply into how the judiciary rectifies transactions considered invalid, while also illuminating the mechanisms and principles governing these processes. Consequently, understanding how courts handle the aftermath of such transactions becomes crucial, as it guarantees fairness, legality, and compliance with established legal norms. Within this exploration, we will extensively examine the judicial procedures and approaches used to address the consequences of invalid transactions, thereby offering valuable insights into this essential aspect of the legal system’s operation.
Question:
When the Law on Bankruptcy declares a transaction void, does the Court need to address the consequences of the voided transaction and determine how to resolve them?
Answer:
Clause 1, Point b, Article 60 of the Law on Bankruptcy provides: “Declare the transaction invalid, cancel the preservation measures and handle the results of the invalid transaction according to the regulation of the Law.” Therefore, when declaring a transaction void, the Court is obliged to address the consequences of the voided transaction in accordance with the law, specifically resolving the legal consequences of the voided transaction as stipulated in Article 131 of the Civil Code 2015.
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