Civil suit filed after bankruptcy declaration regarding post-bankruptcy employee wages is not inadmissible but must be transferred to the bankruptcy judge.
Legislator summary
AI generatedThe Supreme Court resolved a legal question regarding a civil lawsuit filed after a debtor's bankruptcy declaration concerning employee wages generated by the bankruptcy administrator. The bankruptcy administrator argued the claim was inadmissible because the debt was already included in the official creditor list, while the plaintiffs sought monetary compensation for their termination. The court ruled that while the civil court lacks jurisdiction, the claim is not inadmissible and must be transferred to the bankruptcy judge to prevent duplicate satisfaction.
Legislator headnote
AI generatedArt. 60 of the Bankruptcy Act; Art. 201 of the Code of Civil Procedure: A civil suit filed after bankruptcy declaration regarding post-bankruptcy employee wages is not inadmissible but constitutes an improper procedure, requiring transfer to the bankruptcy judge.