The Legal Nature of the Liquidator in Bankruptcy (A Comparative Study of Iraqi and Iranian Law)

Abstract

This study examines the legal status of the liquidator during the bankruptcy process in both Iraqi and Iranian law. This research seeks to shed light on the legal relationship between the liquidator during the bankruptcy period and the legal nature of the liquidator\'s actions. The answer to this question bears crucial legal implications, notably in terms of determining the scope of the liquidator\'s discretion in the liquidation process, such engaging in the sale or purchase of the bankrupt business person\'s assets or conducting transactions with the debtor. These issues are crucial in determining the liquidator\'s legal status. The present research tackles these questions by adopting a descriptive-analytical methodology to conduct a comparative approach a comparative analysis of the legal systems of Iran and Iraq. Findings suggest that determining the liquidator’s legal status in Iraqi and Iranian legal systems requires attention to various factors. Some legal scholars have addressed this issue by describing the liquidator as an agent of the bankrupt business person or the creditors, while others view the liquidator’s role as representing the business person, with still others considering the liquidator a surrogate. Nevertheless, what holds true in both legal systems is that since the liquidator is appointed by the judiciary authorities and acts on behalf of both creditors and the bankrupt business person, this role arguably possesses a special legal nature.