Official Receiver’s Limited Authority in Leasehold Bankruptcy Claims
G. Regarding Mr. Daeng, during the installment payments of the leasehold property, Mr. Daeng defaulted twice consecutively. Subsequently, the creditor filed a lawsuit against Mr. Daeng as a bankruptcy case. The Official Receiver appointed as a Receiver of Assets managed to seize assets in the bankruptcy case, specifically the attached building, which was under a civil eviction case against Mr. Daeng to vacate the aforementioned building. The Official Receiver had the power to collect assets in the bankruptcy case, or did he?
The short answer is: The Official Receiver did not have the power to collect assets in the bankruptcy case, as the assets available for collection by the creditors were those as stipulated in the Bankruptcy Act, Section 109. However, the attached building, which was a leasehold, was not property of Mr. Daeng; it was under the ownership of United Air. The installment payments of the leasehold property remained the ownership of Company G. At the commencement of the bankruptcy, as stipulated in Section 109 (1) and according to the Act on Immobilized Property and various objects, the building was real property, meaning the ownership remained with Company G, even though it was in the possession of Mr. Daeng. The name of the business was also not yet established, and the circumstances did not yet indicate that Mr. Daeng was the owner of the building, which could have divided the assets for the benefit of creditors. When Mr. Daeng was definitively declared bankrupt by the Bankruptcy Act, Section 109, it prohibited creditors from filing lawsuits against the bankrupt debtor for claims for payment of money only, Sections 26, 27.
Regarding debts relating to acts of forbearance, abstaining from acts, or the delivery of other assets, or payment to the Official Receiver, it did not prohibit filing lawsuits. The lawsuit for claims for payment of money did not require prohibition as stipulated in Section 26. Company Daeng was subject to a civil lawsuit. The Code of Civil Procedure, the Prosecutor is the plaintiff, filing a lawsuit against the defendant before the Provincial Court requesting the imposition of penalties against the defendant for the offense.