Where a decision to abolish reorganization proceedings becomes final and conclusive during the continuation of an action of denial under the Company Reorganization Act, the validity of the action of such denial.

The right to set aside under the Company Reorganization Act is a special system under the Company Reorganization Act, which is recognized to restore the company's assets illegally disposed prior to the decision to commence reorganization proceedings and to maintain and restore the company's business, and is entitled to exercise only the custodian under the premise of the progress of reorganization proceedings. Thus, even if the right to set aside has been exercised during the reorganization proceedings, if the reorganization proceedings are terminated prior to the recovery of the company's assets to the company, then the right to claim return of the assets to the other party or to claim redemption of the value thereof shall also be deemed extinguished as the effect of exercising the right to set aside if the decision to abolish the reorganization proceedings becomes final during the period of the continuation of the claim based on the exercise of the right to set aside or the right to set aside, and at the same time,

Articles 69, 78, and 272 of the Company Reorganization Act

[Plaintiff-Appellant] Plaintiff 1 and 1 other (Law Firm Gyeong, Attorneys Jeon-soo et al., Counsel for plaintiff-appellant)

The Dong Yang Heavy Industrial Company, which is a request for taking over by a receiver of the Dong Yang Heavy Industrial Company

Han Bank Co., Ltd. and one other, Counsel for defendant-appellee

Seoul High Court Decision 95Na2175 delivered on June 14, 1995

The appeal is dismissed.

The costs of appeal shall be assessed against the appellant.

As to the Grounds of Appeal

The right to set aside under the Company Reorganization Act is a special system under the Company Reorganization Act, which is recognized to restore the company's assets illegally disposed prior to the decision to commence reorganization proceedings and to maintain and restore the company's business, and is entitled to exercise only the administrator under the premise of the progress of reorganization proceedings. Thus, even if the right to set aside has been exercised during the reorganization proceedings, if the reorganization proceedings are terminated prior to the recovery of the company's assets to the company, then the right to claim return of the assets to the other party or to claim redemption of the value thereof shall also be deemed extinguished.

Therefore, in cases where a decision to abolish reorganization proceedings in the course of a claim based on the avoidance action or the exercise of the avoidance power becomes final and conclusive as in this case, the qualification of the Plaintiff custodian, who is the plaintiff in the lawsuit, shall be extinguished as well as the rights related to the lawsuit in question, and no one shall succeed to them.

In the same purport, the court below rejected the appellant's petition for the acceptance of lawsuit and at the same time dismissed the appellant's appeal on the ground that it is unlawful since the appellant is not recognized as a party to the lawsuit of this case, and there is no error of law by misunderstanding the legal principles, such as the theory of lawsuit. All arguments are

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing appellant. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Jong-sik (Presiding Justice)