The Court shall dismiss the application for Protective Composition in the following cases:
- If the Debtor is already subject to Protective Composition, restructuring, bankruptcy or liquidation of the Debtor’s Assets in the State in accordance with the provisions of this Law.
- If the Debtor fails to submit the documents and details provided for in Articles (9) and (11) of this Law, or if the application is unjustifiably incomplete.
- If it is established that the Debtor is acting in bad faith or the application is an abuse of process.
- If a final judgment is issued convicting the Debtor of one of the crimes provided for in Chapter Six of this Law or of any crime of forgery, theft, fraud, breach of trust, or embezzlement of public funds, unless the Debtor has been rehabilitated.
- If the Court finds that the Protective Composition Procedure is not appropriate for the Debtor on the basis of the information submitted by the applicant or the report prepared by the Expert pursuant to Article 13(2) of this Law.
- If the Court decides to commence bankruptcy procedures pursuant to the provisions of Chapter Four of this Law.
- If the Debtor fails either to pay the required deposit amount or to provide the required bank guarantee, pursuant to the provisions of Article (12) of this Law.
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.