What is The Renvoi Procedure in a Bankruptcy Case
Follow Us

What is The Renvoi Procedure in a Bankruptcy Case

The provisions of Article 127 of Law Number 37 the Year 2004 concerning Bankruptcy and Suspension of Obligation for Payment of Debts clearly stipulate that the settlement of disputes regarding the amount of debt between the bankrupt debtor and creditors is carried out by a panel of judges at the commercial court, known as the Renvoi Procedure. This mechanism can only be adopted when the curator and the supervisory judge cannot resolve the dispute. This is what is meant by Renvoi Procedure in bankruptcy. 

Renvoi is applied to certain cases, namely if there are denials or differences of opinion regarding claims between the Curator and the Debtor or Creditors in a bankruptcy case, while the supervisory judge fails to resolve the difference of opinion, the supervisory judge will order both parties to resolve the difference of opinion to the Court Judge who will be decided through a simple procedure.

The problems raised through the Renvoi Procedure will later result in a decision. The renvoi decision must have been decided seven days from the first trial, there should be no reply-rejoinder in this renvoi hearing, it is enough with attachments of evidence and legal basis and denial to the list of claim compiled by the curator, as well as the curator, it is sufficient to make an answer to the creditor's claim with the evidences. In practice, this Renvoi Procedure usually only has 3 (three) sessions that are preamble, evidence examination, and decision.

Suria Nataadmadja & Associates Law Firm

Advocates & Legal Consultants