Crisis Factories in Iranian Law with a Look at the Laws of the United States and France

Subject Areas : International Legal Research

Shahrokh Sayadian ¹ , Mohammad Saghari ² , Farid Mohseni ³

1 - PhD Candidate in Private Law, South Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Assistant Professor, University of Judicial Sciences, Tehran, Iran
3 - Associate Professor, University of Judicial Sciences, Tehran, Iran

Received: 2020-10-29 Accepted : 2021-02-14 Published : 2021-03-21

Keywords: reconstruction, suspension, Temporary Administration, composition need, Keywords: Bankruptcy Law,

Abstract :

Field and Aims: With the enactment of the Commercial Code in 1996, the custom of commercial usury during the constitutional period was abolished, and with the dissolution of the Commercial Court, only this bankruptcy became dominant only due to non-payment of debt at maturity. On the other hand, the late conclusion of the composition need, due to the lack of a preventive aspect to the bankruptcy order, practically failed to prevent the liquidation of the merchant's property. The rule of law of liquidation and attention to the interests of creditors also led to the neglect of other components such as factory maintenance and employment of workers and property rights of the debtor.Methodology: The research method is comparative-analytical and the data collection method is documentary research. The data analysis method is a descriptive-analytical approach.Findings and Conclusion: In the bankruptcy regulations, efforts have been made to preserve the factory and to express the difference between stoppage and bankruptcy, but due to insufficiency and inconsistency with the provisions of the Commercial Code, it has not achieved much success in reviving crisis-prone factories. Examining the process governing the above-mentioned regulations and comparing it with the reconstruction institution confirms the necessity of changing the philosophy of bankruptcy law.

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