The Legal Implications of the Actions of the Bankrupt in the Doubt Period – A Comparative Study
Dr. Ayedh Almarri
Assistant Professor – Law Dept.- Business Studies College – The Public Authority for Applied Education and Training
Abstract:
We focused in this study on the effects of the debtor’s actions in the Gulf Cooperation Council Countries (GCC) due to the practical importance of this issue.
In fact, suing the unenforceability of the actions concluded by the bankrupt during the doubt period provides protection to creditors, and grants them a general security. This legal action ensures also the principle of equality between all the creditors of the bankrupt given that the actions carried out by the bankrupt in the suspect (doubt) period are considered as a breach of these principles.
The geographical scope of this study encompasses the Gulf Cooperation Council Countries (GCC), in order to assess the legal situation in those countries in terms of organization of the doubt period in their respective national legislations.
We subdivided this study into Three Chapters: We covered in the First Chapter the period of doubt and we dedicated the First Section to its historical evolution. In the Second Section, we dealt with the unenforceability action regulated in the civil law and we concluded that the required conditions are hardly applicable in the trade practice. This verdict conducted the legislator to presage special provisions for trade and merchants. In the Third Section, we examined the doubt period and we defined who is entitled to determine its duration, and when this period starts. In the Second Chapter, we dealt with the mandatory unenforceability of the actions of the merchant including the nature,the conditions and classes of such actions, and the implications of that in three consecutive subsections sections. In the Third Chapter, we overviewed the unenforceability derogations delegated by the legislator to the Court. We subdivided this Section into Four Subsections: The first Subsection was dedicated to the Conditions of the unenforceability derogations and the classes of related actions, in the Third Subsection we listed its effects and in the Fourth Subsection we reviewed the unenforceability of the mortgage and privilege registrations if the registration occurs after fifteen days starting from the decision granting mortgage or privilege following cessation of payment.