CHAPTER V APPROVAL OR DISAPPROVAL OF COMPOSITION

Article 54 (Approval or Disapproval of Composition)

(1) If the composition has been approved in the meeting of creditors, the court shall determine the approval or disapproval of composition on the fixed date or the immediately announced date.

(2) The persons as provided in Article 50 (1), the administrator and the liquidation commissioner may express their opinions on the approval or disapproval of composition.

(3) The proviso of Article 211 of the Bankruptcy Act shall apply mutatis mutandis to the decision which determines the fixed date for the approval or disapproval of composition.

Article 55 (Cases where Disapproval of Composition my be Decided)

1. Only in cases falling under any of the following subparagraphs, the court may decide the disapproval of composition ex officio or upon the request of a composition creditor:
2. If the proceedings or the resolution of composition is contrary to the provisions of any Act and the subsequent remedy of its defect is impossible;
3. If there are causes of Subparagraph 2 or 3 of Article 18;
4. If a resolution of composition has been made by unlawful manners; or 4. If a resolution of composition is contrary to the general interest of composition creditor.

Article 56 (Announcement and Public Notification of Approval or Disapproval of Composition)

The decision of approval or disapproval of composition shall be announced, and the judgement and the abstract of reasoning shall be notified publicly; provided, that the service thereof shall not be required.

Article 57 (Immediate Appeal)

(1) An immediate appeal may be filed against the decision of approval or disapproval of a composition.

(2) Article 291 of the Bankruptcy Act shall apply mutatis mutandis to the composition creditor.

Article 58 (Entering-into-Force of Composition)

The composition shall enter into force by the final conclusion of the decision of approval.

Article 59 (Recording in Credits List)

If the approval decision of composition has become final and conclusive, the court administrative officer or clerk shall record the conditions of composition in the credits list.

Article 60 (Payment of Credits without Effect of Composition)

(1) If the decision of approval of composition has become final and decisive, the debtor shall pay the credits coming into existence for composition, the cost of composition procedure, and credits with general priority.

(2) The credits as provided in the preceding paragraph and dissented shall be deposited for the creditor.

Article 61 (Application Mutatis Mutandis of Provisions over Effect of Compulsory Composition in Bankruptcy)

Articles 297 through 299 and 314 of the Bankruptcy Act shall apply mutatis mutandis to the effect of composition.

Article 62 (Invalidation of Bankruptcy Proceeding, Compulsory Execution, Conservative Measures during Suspension)

If the decision of approval of composition has become final and decisive, the application for bankruptcy suspended pursuant to the provisions of Article 17 and the compulsory execution, the provisional attachment and the provisional disposition suspended pursuant to the provisions of Article 40 (2) shall lose the effect.

Article 62-2 (Duty of Report of Debtor)

A debtor shall report to the court semiannually the matters prescribed by the court as necessary measures to determine the performance or non-performance of composition conditions, circumstances of income and expenditure of funds of a debtor, and other circumstances of the performance of composition conditions, after the decision of approval of composition is confirmed finally. [This Article Newly Inserted by Act No. 5518, Feb. 24, 1998]