The Boundaries to Approve the Indisputability of the Claims in Bankruptcy Proceedings

Abstract

The Law on Bankruptcy of the Republic of Armenia (hence LBA or the Law) makes it possible to declare the debtor bankrupt and register creditor’s claim if the letter one entails from indisputable claims. Indeed, those indirect rules on approval of the claim in combination with the rules of moratorium apparently put the law enforcement practice either in non-conformity with the principal task of bankruptcy proceedings or deprive an entity from the right to fair trial (article 18, the Constitution of Armenia ). Though the court is vested only in to approve the indisputable nature of the claim, the law enforcement practice has drifted far from this crucial point of departure suggesting us entirely different case law practice. Needless to say, that this kind of case law is not in compliance with the features of bankruptcy proceedings, however it provides a reasonable opportunity to the potential creditors to resolve the dispute and to apply for the registration of relevant claim under the same bankruptcy procedure. And this is in the case when the potential creditor possesses no right to initiate a civil lawsuit under the Code of Civil Procedure of the Republic of Armenia (hence CPC) given to the limitations existing as a part of moratorium.