Article 281 of the Company Reorganization Act

The provisions of Article 281 of the Company Reorganization Act, with the exception of cases under Article 23 or 27 of the same Act, where a decision to abolish the reorganization proceedings becomes final and conclusive, the receiver shall, in his capacity, repay the claims for public interest with the assets of the reorganization company and, if any, deposit for such creditors. The reorganization company’s claims are not obligated to be repaid with the assets of the reorganization company, and when the decision to abolish the reorganization proceedings becomes final and conclusive, the receiver shall not be deemed as tort unless the former receiver takes the measures under Article 281 of the above Act.

Article 281 of the Company Reorganization Act

Attorney Song Young-young et al., Counsel for defendant-appellee

Seoul Bank of Korea (Attorney Kim Jong-soo, Counsel for defendant-appellee)

Seoul High Court Decision 72Na1894 delivered on May 23, 1973

The appeal is dismissed.

The costs of appeal shall be borne by the plaintiff.

We examine the grounds of appeal.

1. The provisions of Article 281 of the Company Reorganization Act, when the decision to abolish the reorganization proceedings becomes final and conclusive, shall be interpreted as the purport that the receiver shall pay the reorganization company's claims (public-interest claims) with the assets of the reorganization company in its capacity and make deposits for creditors, except in the case of Article 23 or 27 of the same Act, and therefore, the receiver shall not be deemed to have the obligation to pay the reorganization company's public-interest claims with its assets. Thus, the court below's rejection of the plaintiff's principal claim in the above purport cannot be adopted as a legitimate and opposing opinion that the defendant company, who was the receiver of the reorganization company, is obligated to pay the reorganization company's public interest claims.

2. The court below rejected the plaintiff's claim on the ground that the defendant company, who was the manager, did not take measures under the above Article 281, since the plaintiff's first preliminary claim, that is, the defendant company, was not a secured claim, and the liquidation company, caused damages to the defendant bank due to the insolvency of the reorganization company, and thus, at the time of August 2, 1971, the reorganization company's property at the time of the above reorganization company's discontinuation decision on reorganization proceedings against the above reorganization company was confirmed to be 423,00,000 won, and the total amount of public interest claim is 594,00,0000 won. If the above reorganization company's circumstance is identical to the above recognition, it is difficult to conclude that the defendant bank, who was the manager, was liable for damages due to the tort against the defendant bank, which was the administrator. The above reorganization company's property at the time of the above reorganization company's dismissal, the court below's determination that the defendant did not take measures under the above Article 281 cannot be viewed as a legitimate ground for appeal.

Therefore, the appeal shall be dismissed and the costs of the lawsuit shall be borne by the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Kim Young-chul (Presiding Justice)