Bankruptcy law needs wider definition<\/p>\n
JAKARTA (JP): The committee for the drafting of the bill on
\nthe revision of the Indonesian Bankruptcy Law has proposed a
\nbroader definition of \"debt\" than is contained in the current
\ninsolvency law.<\/p>\n
Kartini Muljadi, one of the committee members, said that
\n\"debt\" should mean any obligation that needs repayment or
\nfulfillment.<\/p>\n
\"The obligation here should not only be related to a debt in a
\nmonetary sense,\" she said, at a seminar on the implementation of
\nthe country's bankruptcy law.<\/p>\n
\"Debt might be a monetary indebtedness but this is not all,\"
\nshe said.<\/p>\n
One party's obligation to deliver a service or goods can also
\nbe considered as debt, according to Kartini. For example, if a
\nparty cannot make a delivery, then that party is equivalent to a
\nparty which is failing to repay debts, or also termed as being in
\na state of default. Kartini, one of the country's senior lawyers,
\nsaid that the meaning of the debt should be re-defined to avoid
\ndifferent interpretations.<\/p>\n
This difference in interpretation was seen in the bankruptcy
\ncase filed earlier this year by individuals Husein Sani and Johan
\nSubekti against PT Modernland Realty at the Commercial Court.<\/p>\n
The two individuals filed a bankruptcy petition against the
\nproperty developer for the latter's failure to deliver units of
\napartments, for which the plaintiffs had partially paid.<\/p>\n
The Commercial Court accepted the claim and declared PT
\nModernland Realty bankrupt.<\/p>\n
The property developer then filed an appeal to the Supreme
\nCourt.<\/p>\n
The Supreme Court accepted the property developer's appeal and
\nautomatically lifted the company's insolvency status previously
\ngiven by the Commercial Court.<\/p>\n
The Supreme Court said in its appeal verdict that the
\nbankruptcy status of PT Modernland Realty should be revoked
\nbecause there was no debt involved in the deal between the
\nproperty developer and the two businessmen. The obligation to
\ndeliver units of apartments could not be considered as debts, the
\nappeal verdict added.<\/p>\n
Kartini said to avoid such unfair court rulings in the future
\nthe drafting committee had proposed a broader definition of the
\nword debt.<\/p>\n
\"The word \"debt\" shall mean any amount payable, and if not
\npaid, will entitle the creditor to receive settlement thereof
\nfrom the debtor's assets,\" the proposed definition clause said.<\/p>\n
The drafting committee who are completing the amendments of
\nthe bankruptcy law are working under the auspices of the
\nDirectorate General of Law at the Ministry of Justice. It
\nconsists of senior lawyers, legal experts and Ministry officials.<\/p>\n
The existing bankruptcy law, which was introduced only late
\nlast year, has been widely criticized. Debtors said that the law
\nwas enacted only to protect creditors. The creditors, on the
\nother hand said that the law was not strong enough to safeguard
\ntheir interests.<\/p>\n
Kartini said that the bill was in the final stage of revision
\nand it would be submitted to the new House of Representatives for
\napproval.<\/p>\n
However, she said that there were still issues not addressed
\nby the bill, including whether a creditor in a syndicated loan is
\nentitled to file a bankruptcy claim. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bankruptcy-law-needs-wider-definition-1447893297",
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