Open Decision Ledger · Rehabilitation & bankruptcy
Whether a lawsuit terminates and whether continuation may be granted when a decision concluding reorganization proceedings becomes final during the pendency of a lawsuit for avoidance
Translated from the Korean original. Read the Korean
Supreme Court, Oct. 12, 2006, 2005Da59307 (judgment)
Case name: 정리채권에대한부인의소
Official text on the National Law Information Center
Question
If a decision concluding reorganization proceedings becomes final while a lawsuit for avoidance is pending under the former Corporate Reorganization Act, does that lawsuit terminate, and may the company continue it?
Holding
The right of avoidance is a right that may be exercised only by the trustee on the premise that the reorganization proceedings are in progress, and therefore it is extinguished if the reorganization proceedings are concluded before the property is recovered. The Supreme Court declared that the lawsuit had terminated by virtue of the decision to conclude the proceedings and dismissed the company's application to continue the lawsuit.
Summary of the holding, verbatim
부인의 소 또는 부인권의 행사에 기한 청구의 계속중에 정리절차종결결정이 확정된 경우에는 관리인의 자격이 소멸함과 동시에 당해 소송에 관계된 권리 또한 절대적으로 소멸하고 어느 누구도 이를 승계할 수 없다.
Unofficial English translation
Where an order terminating the reorganization proceeding becomes final and conclusive while an action for avoidance or a claim based on the exercise of the right of avoidance is pending, the trustee's qualification is extinguished and, at the same time, the rights pertaining to the relevant lawsuit are also absolutely extinguished, and no one may succeed to them.
Disposition
Other Stated in the decision
원고와 피고 사이의 이 사건 소송은 서울중앙지방법원 2003회9 회사정리사건의 2005. 9. 27. 자 회사정리절차종결결정으로 종료되었다.
Unofficial English translation
This lawsuit between the plaintiff and the defendant was terminated by the order terminating the reorganization proceeding dated September 27, 2005, in Corporate Reorganization Case No. 2003Hoe9 of the Seoul Central District Court.
Form of the test
Existing test applied Read from the decision
관리인의 자격이 소멸함과 동시에 당해 소송에 관계된 권리 또한 절대적으로 소멸하고 어느 누구도 이를 승계할 수 없다.
Unofficial English translation
the trustee's qualification is extinguished and, at the same time, the rights pertaining to the relevant lawsuit are also absolutely extinguished, and no one may succeed to them.
Factors
- 정리절차의 진행을 전제로 관리인만이 행사할 수 있는 권리
- 회사에 재산이 회복되기 전에 정리절차가 종료한 때
- 관리인의 자격이 소멸함과 동시에
- 이에 대한 수계신청의 가능 여부(소극)
Unofficial English translation
• A right that only the trustee may exercise on the premise that the reorganization proceeding is in progress
• Where the reorganization proceeding is terminated before any property is recovered to the company
• At the same time as the trustee's qualification is extinguished
• Whether an application for continuation thereof is permissible (negative)
Relation to precedent
Follows earlier decisions Stated in the decision
대법원 1995. 10. 13. 선고 95다30253 판결
Unofficial English translation
Supreme Court Decision 95Da30253 decided October 13, 1995
Decisions referred to
대법원 1995. 10. 13. 선고 95다30253 판결(공1995하, 3775), 대법원 2004. 7. 22. 선고 2002다46058 판결
Burden of proof
Not addressed Not in the decision
Open question and revisit condition
If the property has already been recovered by the company through the exercise of the right of avoidance and the reorganization proceedings are concluded thereafter, how are the effect of that recovery and any subsequent disputes to be handled?
This reading will be checked again if Article 100, etc. of the Debtor Rehabilitation and Bankruptcy Act, which are the provisions concerning the right of avoidance, are amended, or if a new Supreme Court decision is handed down on the relationship between the conclusion of rehabilitation proceedings and a lawsuit for avoidance.
Cross-family AI independent reading & axis check
7 of 8 axes matched GPT-6 Astra (OpenAI, codex CLI) · 2026-10-16
As a result of comparing an independent reading by another family of AI (GPT-6 Astra), which read only the original text without seeing the initial reading, 7 of the 8 axes matched, while the readings diverged on the fourth axis (Form of the test).
Axis 4 (Form of the test): Primary “Application to the facts” vs Independent “Elements stated”
Because the original text sets out the general legal principle of the extinguishment of the right and the impossibility of continuation while also declaring the actual termination of the lawsuit and the dismissal of the application for continuation, the classification may vary depending on whether the focus is placed on the result of the application or on the general requirements.
부인의 소 또는 부인권의 행사에 기한 청구의 계속중에 정리절차종결결정이 확정된 경우에는 관리인의 자격이 소멸함과 동시에 당해 소송에 관계된 권리 또한 절대적으로 소멸하고 어느 누구도 이를 승계할 수 없다.Raw responses and comparison record: Protocol · Blind readings (JSONL) · Axis comparison (JSONL) · SHA-256 (JSON)
Lower-court contrast & scope of application
Lower-court reading vs. Supreme Court holding
Lower-court context: The court below (Seoul High Court Decision 2004Na81224 announced September 2, 2005) adjudicated a lawsuit for avoidance filed on the ground that the act of endorsement was subject to avoidance, but the specific content of the findings of the court below cannot be confirmed from the reasoning. The decision concluding the reorganization proceedings was rendered on September 27, 2005, after the judgment of the court below.
Supreme Court standard: The Supreme Court took the view that, while the appeal was pending, the decision concluding the reorganization proceedings had become final and binding, so that the right of avoidance and the claim for return based thereon had been absolutely extinguished, and, without addressing the grounds for final appeal, declared the termination of the lawsuit and dismissed the application for continuation filed by the plaintiff, the applicant for continuation of the lawsuit.
Distinguishing conditions
- A case in which the reorganization proceedings were concluded after the property had already been recovered by the company as a result of the exercise of the right of avoidance
- A lawsuit based not on the right of avoidance but on an ordinary claim originally held by the company or on a right that continues to exist independently of the reorganization proceedings, such as an action to set aside a fraudulent act
- A case in which the reorganization proceedings ended for a reason other than their conclusion, so that a separate provision applies
Record verification notes
Before asserting the same conclusion, one must first check whether the decision to conclude the proceedings has actually become final and binding, and whether the subject matter of the suit is limited to a claim based on the right of avoidance or whether rights inherent to the company are also asserted.
From the official text
Points at issue
구 회사정리법상 부인의 소 또는 부인권의 행사에 기한 청구의 계속중에 정리절차종결결정이 확정된 경우, 그 소송의 종결 여부(적극) 및 이에 대한 수계신청의 가능 여부(소극)
Unofficial English translation
Whether, where an order terminating the reorganization proceeding becomes final and conclusive while an action for avoidance under the former Corporate Reorganization Act or a claim based on the exercise of the right of avoidance is pending, such lawsuit is terminated (affirmative), and whether an application for continuation of the lawsuit is permissible (negative)
Summary of the holding
구 회사정리법(2005. 3. 31. 법률 제7428호 채무자 회생 및 파산에 관한 법률 부칙 제2조로 폐지) 제78조의 부인권은 정리절차개시 결정 전에 부당하게 처분된 회사재산을 회복함으로써 회사사업을 유지·갱생시키기 위하여 인정된 회사정리법상의 특유한 제도로서 정리절차의 진행을 전제로 관리인만이 행사할 수 있는 권리이므로 정리절차의 종결에 의하여 소멸하고, 비록 정리절차 진행 중에 부인권이 행사되었다고 하더라도 이에 기하여 회사에 재산이 회복되기 전에 정리절차가 종료한 때에는 부인권 행사의 효과로서 상대방에게 재산의 반환을 구하거나 또는 그 가액의 상환을 구하는 권리 또한 소멸한다. 따라서 부인의 소 또는 부인권의 행사에 기한 청구의 계속중에 정리절차종결결정이 확정된 경우에는 관리인의 자격이 소멸함과 동시에 당해 소송에 관계된 권리 또한 절대적으로 소멸하고 어느 누구도 이를 승계할 수 없다.
Order
원고와 피고 사이의 이 사건 소송은 서울중앙지방법원 2003회9 회사정리사건의 2005. 9. 27. 자 회사정리절차종결결정으로 종료되었다. 원고 소송수계신청인의 수계신청을 기각한다. 소송수계신청으로 인한 비용은 원고 소송수계신청인이 부담한다.
Unofficial English translation
This lawsuit between the plaintiff and the defendant was terminated by the order terminating the reorganization proceeding dated September 27, 2005, in Corporate Reorganization Case No. 2003Hoe9 of the Seoul Central District Court. The application for continuation of the lawsuit filed by the plaintiff, applicant for continuation of the lawsuit, is dismissed. The costs arising from the application for continuation of the lawsuit shall be borne by the plaintiff, applicant for continuation of the lawsuit.
Provisions referred to
구 회사정리법(2005. 3. 31. 법률 제7428호 채무자 회생 및 파산에 관한 법률 부칙 제2조로 폐지) 제78조(현행 채무자 회생 및 파산에 관한 법률 제100조 참조), 제82조(현행 채무자 회생 및 파산에 관한 법률 제105조 참조), 제271조(현행 채무자 회생 및 파산에 관한 법률 제283조 참조)
Read 2026-10-16 · Cross-read 2026-10-16. All quotes matched against the official text. The Chinese-character placeholders the court used for anonymised parties are given in their Korean readings, and parenthetical Chinese-character glosses are omitted.
Every entry is published only after all quotes have been matched character by character against the official text, and audited by an independent second reading from a different model family across all eight axes. Both agreed axes and text-grounded interpretive divergences are recorded openly. The ledger is a research record, not an assessment of the court or advice on any matter.
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