Bankruptcy Rehabilitation Petition Suspension and Asset Sequestration Dispute
Article 3, Thong Company Limited, is the owner of a box manufacturing factory. Subsequently, financial difficulties led to the leasing of the factory to Chai Company Limited for a term of three years following the failure of Thong Company Limited to pay the bank. Puth Company Limited was declared bankrupt due to the insolvency of Thong Company Limited. The court scheduled a hearing for the absolute sequestration of assets on July 20th.
The court accepted the petition for the rehabilitation of Thong Company Limited on July 10, 2546, for consideration. Regarding the following issues: (a) Can Puth Company Limited continue to pursue litigation for bankruptcy, if it has already filed such action, and in such a case, can Thong Company Limited oppose the petition to the court filed by Puth Company Limited? (b) Can Puth Company Limited and Chai Company Limited oppose the request for rehabilitation of Thong Company Limited to protect their interests?
Thong Company Limited responded, citing Section 90/12 of the Bankruptcy Act B.E. 2483, Section 4. When there is a prior pending lawsuit, the consideration of other orders shall be suspended. Therefore, once the court has accepted the petition for the rehabilitation of Thong Company Limited, the court considering the bankruptcy case of Puth Company Limited must issue an order to suspend the consideration of the bankruptcy case filed by Puth Company Limited.
/12 (4) of the Bankruptcy Act B.E. 2483.
(b) Can Thong Company Limited oppose the petition for rehabilitation of Thong Company Limited before the first hearing date of the petition for rehabilitation, not less than one week? The debtor seeks rehabilitation without good faith and the business has no means to rehabilitate, and is in the position of a lessee, therefore, it is entitled to use or benefit from one of the factories during the term of the lease, according to the Civil and Commercial Code, Section 537. The debtor must perform its duties as a lessee, and therefore is entitled to oppose the rehabilitation petition of the petitioner, according to Section 90/9, paragraph three of the Bankruptcy Act B.E. 2483. The debtor has the same right to file a protest against the rehabilitation petition as Puth Company Limited.