Bankruptcy Proceedings and Contractual Vehicle Transfer Ownership Dispute
On January 1, 2002, Mr. Neung executed a contract to sell and buy three vehicles belonging to him to Mr. Song at market price. The vehicles were transferred on January 5, 2003. Subsequently, on March 1, 2002, Mr. Neung filed for bankruptcy, and the court ordered the sequestration of Mr. Neung’s assets as bankrupt. The court issued a definitive order for the sequestration of Mr. Neung’s assets on January 31st. On January 5, 2003, Mr. Neung transferred ownership and delivered the vehicles to Mr. Song pursuant to the contract. Mr. Song paid the vehicle price to Mr. Neung, unaware that Mr. Neung had already been subject to a definitive sequestration order. Therefore, the question is whether Mr. Song acquires ownership of the vehicles, and the reason for this.
The fact that Mr. Neung performed the act of transferring ownership by delivering the vehicles to Mr. Song on January 5, 2003, which occurred after the court had issued a definitive order regarding Mr. Neung is a clear violation as stipulated in Section 24 of the Bankruptcy Act, which prohibits debtors from taking any action regarding their assets or business without the court’s order or approval; such actions are void according to the Civil and Commercial Code, Section , concerning ownership of the vehicles, without regard to whether Mr. Song, the recipient of the transfer, received the vehicles and compensation.
The presiding judge of the Uthai Thani District Court constituted the panel.