1. Case summary
ㅇ Case background: Barun Law (attorneys in charge: Roh Seok-jun, Yi Min-Hoon and Kwon Eun-young) successfully advised on the merger and acquisition deal prior to the approval of a 바카라쿠폰 proceedings for Jeju Country Club engaging in the operation of a golf course in Jeju. The defendants completed the registration of ownership transfer regarding certain real estate owned by JCC after they had purchased and had paid for part of the real estate in the discretionally sale process taken place during the 바카라쿠폰 proceeding.
ㅇ Litigation: Representing JCC, we claimed for the cancellation of the ownership transfer registration made in the name of the defendants, asserting that even though the defendants had paid for the real estate in the discretionally sale process, but the 바카라쿠폰 proceeding had been commenced before the dividend payout date, and thereafter, the 바카라쿠폰 plan for the debtor had been finally approved, and thus, the sale became invalidated and the ownership transfer registration became null and void.
2. Decisionㅇ On August 23, 2021, the Jeju District Court accepted all the claims filed by JCC, determining that a general injunctive order was issued for the plaintiff before the dividend payout date commenced with regard to the sale under the Debtor Rehabilitation 바카라쿠폰 and the rehabilitation proceeding was commenced thereunder, and therefore, the sale became invalidated, and the ownership transfer registration, which had been made in the sale in relation to the real estate, was null and void.
3. Our case and roleㅇ After thoroughly analyzing legal theory and precedents regarding the Debtor Rehabilitation 바카라쿠폰, we obtained a confirmation that the ownership transfer registration based on the sale proceeding should be null and void by convincing the court that in relation to the suspension and invalidation of a sale, the 바카라쿠폰 on Rehabilitation and Bankruptcy of Debtor, which is a special law, prevails over the Civil Execution 바카라쿠폰, which provides that a purchaser shall acquire title to real estate only when it has fully paid for the real estate in a sale made to foreclose a creditor’s security interest in the real estate (Articles 268 and 135 of the Civil Execution 바카라쿠폰), and therefore any proceeding to compulsorily execute a creditor’s right arising from its rehabilitation claim or rehabilitation security interest should be suspended with regard to the debtor’s property when there is a general injunctive order or a decision on the commencement of a rehabilitation proceeding, and the suspended sale should be invalidated when there is a decision on the approval of a rehabilitation plan.
4. Implicationㅇ This decision has implications in that it specifically embodies the Supreme Court of Korea’s decision in which it confirms that the 바카라쿠폰 on Rehabilitation and Bankruptcy of Debtors prevails over the Civil Execution 바카라쿠폰 with regard to the suspension and invalidation of a sale proceeding in the case of conflicts between the two acts and the suspended sale proceeding should be invalidated when there is a decision on the approval of a rehabilitation plan, and it gives a clear conclusion regarding the ownership of a purchaser. It is expected that this decision will help resolve a dispute over precedence between a rehabilitation proceeding under the Debtor Rehabilitation 바카라쿠폰 and a sale proceeding under the Civil Execution 바카라쿠폰 in a more appropriate and expeditious manner.
ㅇ Attorneys in charge: Roh Seok-jun, Yi Min-Hoon and Kwon Eun-young
