Bankruptcy claim over Modernland approved
JAKARTA (JP): In only its second decision since opening in August, the Jakarta Commercial Court approved on Monday the bankruptcy petition filed by Hussein and Johan Subekti against property firm PT Modernland Realty for a Rp 94.13 million (about US$10,460) debt.
Trading of Modernland Realty stocks were suspended on Monday following the court decision in the morning, the Jakarta Stock Exchange announced in a statement.
Hussein and Johan Subekti filed their claim with the commercial court late last month after Modernland Realty failed to repay their down payment to purchase apartments it developed.
The bankruptcy law allows either party to appeal to the Supreme Court. The appeal must be heard within 30 days.
In its one other verdict, the commercial court rejected the claim filed by American Express Bank last month against publicly listed PT Ometraco Corporation, on the grounds the plaintiff's charge overlapped with its suit against Ometraco subsidiary PT Ometraco Multi Artha.
Chairman of the Bankruptcy Litigation of Lawyers Club, Hotman Paris Hutapea, who is also a bankruptcy attorney of Makarim and Taira S law firm, said the panel of judges should not have approved the claim against Modernland Realty because both parties were still seeking an out-of-court settlement.
"This decision will only spur other small creditors to file more petitions to the court seeking more bankruptcies," he told The Jakarta Post separately.
He said that although the country's bankruptcy law did not stipulate the minimum amount of debt which could be brought before the commercial court, Modernland Realty's debt obligation to the plaintiffs was relatively small.
"With such a small amount, the judge should have been wiser with his decision," he said.
Lawyers for both the plaintiffs and Modernland Realty were not available for comment on Monday.
Hotman said Modernland could appeal to the Supreme Court, but the court's decision had already tarnished the property firm's image, "and that is bad". (aly)