Navigating bankruptcy cases often involves complex legal decisions, and one such decision revolves around the declaration of the nullity of transactions. Within the process of resolving bankruptcy cases, a critical question emerges: should the Court apply the provisions of the Law on Bankruptcy or the Civil Procedure Code when considering the declaration of nullity of transactions? This query delves into the heart of bankruptcy proceedings, touching upon the legal framework and principles that guide the Court’s actions in addressing transactions deemed null and void. The choice between the Law on Bankruptcy and the Civil Procedure Code significantly influences the outcome and fairness of these cases. In this exploration, we will delve into the intricacies of this matter, seeking to understand the legal landscape that informs the Court’s decisions regarding the nullification of transactions during bankruptcy proceedings.
Question:
During the bankruptcy proceedings, the Court applies the provisions of the Law on Bankruptcy or the Civil Procedure Code to consider the declaration of invalidity of transactions.
Answer:
In Clause 1, Article 3 of the Law on Bankruptcy provides that the Law on Bankruptcy applies when resolving bankruptcy for businesses and cooperatives established within the territory of the Socialist Republic of Vietnam.
Article 207 of the Enterprise Law provides that the bankruptcy business shall be conducted in accordance with the provisions of the law on bankruptcy.
Therefore, during the bankruptcy proceedings, the Court applies the provisions of the Law on Bankruptcy to consider the declaration of invalid transactions.
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