Royal Decree No. 53 - 2019 Issuing The Bankruptcy Law

10/18/23, 5:36 PM Royal Decree No. 53/2019 issuing the Bankruptcy Law – Qanoon.
om
Royal Decree No. 53/2019 promulgating the bankruptcy law

>/July 1, 2019 < https://qanoon.om/p/2019/rd2019053
We Qaboos bin Said, Sultan of Oman
, >/After reviewing the Basic Law of the State issued by Royal Decree No. 101/96 < https://qanoon.om/p/1996/rd1996101
the Commercial Registry Law No. 3/74, the
Insurance Companies Law issued by Royal Decree No. 12/79 < https://qanoon.om/p/1979/rd1979012/> , the Trade Law issued by
, >/Royal Decree No. 55/90 < https://qanoon.om/p/1990/rd1990055
and Royal Decree No. 2 / 98 with the issuance of the Land Registry System < https://qanoon.om/p/1998/rd1998002/> , and on the
Judicial Authority Law issued by Royal Decree No. 90/99 < https://qanoon.om/p/1999/rd1999090/> , and on the Criminal
Procedure Law issued by Royal Decree No. 97/99 < https://qanoon.om/p/1999/rd1999097/> , and on the Banking Law issued by
Royal Decree No. 114/2000 < https://qanoon.om/p/2000/rd2000114/> , and on the Civil and Commercial Procedures Law issued
by Royal Decree No. 29/2002 < https://qanoon.om/p/2002/rd2002029/> , and on the Labor Law issued by Royal Decree No.
35/2003 < https://qanoon.om/p/2003/rd2003035/> , and on the Law of Evidence in Civil and Commercial Transactions issued by
Royal Decree No. 68/2008 < https://qanoon.om/p/2008/rd2008068/> , and on the Civil Transactions Law issued by Royal Decree
No. 29/2013 < https://qanoon.om/p/2013/rd2013029/> , and on the Penal Code issued by Royal Decree No. 7/2018 <
https://qanoon.om/p/2018/rd2018007/> , and the National Payment Systems Law issued by Royal Decree No. 8/2018 <
https://qanoon.om/p/2018/rd2018008/> , and the Commercial Companies Law issued by Royal Decree No. 18/2019 <
https://qanoon.om/p/2019/rd2019018/> , and after presenting it to the Council of Oman, and based on what the public interest
>/requires. < https://qanoon.om/p/1990/rd1990055
>/https://qanoon.om/p/1998/rd1998002 <
We were drawn to what was coming
Article one
.The provisions of the attached Bankruptcy Law shall apply
second subject
The Minister of Commerce and Industry, in coordination with the competent authorities, shall issue the necessary regulations and
.decisions to implement the provisions of the attached law
Article Three
https://qanoon.om/p/2019/rd2019053/ 1/43
10/18/23, 5:36 PM Royal Decree No. 53/2019 issuing the Bankruptcy Law – Qanoon.om
.Book Five of the Trade Law is repealed, as is everything that contravenes or conflicts with the provisions of the attached law
Article Four
.This decree shall be published in the Official Gazette, and shall be effective one year after the date of its publication
Issued on: Shawwal 27, 1440 AH

Corresponding to: July 1, 2019 AD
,Qaboos bin Said

Sultan of Oman
. >/This decree was published in the Official Gazette No. (1300) issued on 7/7/2019 < http://gazette.qanoon.om/p/2019/og1300
Bankruptcy law
The introductory section

definitions and general provisions :
Article (1)
In applying the provisions of this law, the following words and phrases will have the meaning indicated next to each of them, unless
:the context of the text requires another meaning
:A - Ministry
.Ministry of Commerce and Industry
:B - Minister
.Minister of Trade and Industry
:C - The competent department

.the Department of Audit and Control of Commercial Establishments in the Ministry
:D - Register
.Commercial Register
:E - Registrar
.Secretary of the Commercial Registry
:F - Schedule
.The schedule of bankruptcy experts stipulated in Article (5) of this law
:G - Court
The court competent to hear lawsuits and disputes arising from the application of the provisions of this law, in accordance with
.Article (4) thereof
:H - Precautionary measures
the necessary measures taken by the court, or taken by the conciliation judge or bankruptcy judge in accordance with the
provisions of this law, with the aim of preserving or managing the debtor merchant’s assets in a safe manner, or preventing the
.bankrupt debtor from escaping, or hiding his money
:I - Restructuring
Measures that would help the debtor merchant emerge from the stage of financial and administrative turmoil to pay off his debts,
.in accordance with the restructuring plan
:J - Restructuring Committee
.The committee formed from experts registered in the schedule to prepare the restructuring plan
:K - Assistant
The person responsible for assisting the debtor merchant in evaluating his financial and administrative situation, and following up
.on the implementation of the restructuring plan
:L - Protective settlement
The settlement made by the conciliation judge between the debtor merchant and the creditors to avoid declaring his bankruptcy
.based on a request submitted by the debtor merchant
:M – Magistrate Judge
.The judge appointed to supervise protective conciliation procedures
:N - Conciliation Trustee
The person responsible for initiating and following up on conciliation procedures between the applicant for protective conciliation
.and the creditors
:S - Supervisor
.The person appointed to monitor the implementation of the protective settlement contract
:A - Bankruptcy
.All the funds of the bankrupt debtor who lost his possession of them pursuant to the bankruptcy declaration ruling
:F - Bankruptcy Judge
.The judge appointed to supervise bankruptcy procedures
:R - Bankruptcy Administrator
.The legal representative of the bankruptcy appointed by the court to manage the bankruptcy work
:Q - Bankrupt Debtor
.The merchant who has been declared bankrupt by a court ruling
:T - Controller
.The person appointed by the bankruptcy judge from among the creditors to monitor the bankruptcy proceedings
:U - Creditors’ Union
.The union that achieves among creditors one of the cases stipulated in Article (181) of this law
:T - Creditors Union Secretary

.The bankruptcy representative who is chosen by the creditors when a union occurs between them
Article (2)
.The provisions of this law apply to the merchant in accordance with the definition contained in the Trade Law
Excluded from its provisions are institutions licensed by the Central Bank of Oman in accordance with the provisions of the Banking
.Law, or any other law, and insurance companies licensed in accordance with the provisions of the Insurance Companies Law
The application of the provisions of this law is without prejudice to the exception contained in the text of Article (44) of the
.National Payments Systems Law
Article (3)
The provisions of the Trade Law, the Civil Transactions Law, the Law of Evidence in Civil and Commercial Transactions, and the Civil
.and Commercial Procedures Law apply to matters not provided for in this law
Article (4)
The court within whose jurisdiction the main office of the debtor merchant is located has jurisdiction to hear the lawsuits arising
from the application of the provisions of this law. If its main office is outside the Sultanate, the court within whose jurisdiction the
.local center (branch) of the debtor merchant in the Sultanate is located has jurisdiction
Without prejudice to the international agreements in force in the Sultanate, it is permissible to declare the bankruptcy of a foreign
merchant who has a branch or agency in the Sultanate, even if no ruling has been issued declaring his bankruptcy in a foreign
country. In this case, the court competent to declare bankruptcy in the Sultanate is the one within whose jurisdiction the branch or
.agency is located. agency
Article (5)
A roster of experts shall be established called (the Bankruptcy Experts Roster), to which a sufficient number of persons, offices, and
companies specialized in the field of restructuring, asset management, and bankruptcy, bankruptcy managers, appraiser experts,
.and others, when necessary, shall be registered
The Minister of Justice, in coordination with the Minister, shall issue the regulations governing registration in the roster, the controls
.for selecting experts, how they carry out their work, holding them accountable, and the criteria for determining their fees
Chapter One
.Restructuring and Protective Reconciliation :
Chapter One
.Restructuring :
Section One
Restructuring Request :
Article (6)
The debtor merchant who has not committed fraud may request restructuring, provided that he has practiced trade continuously
during the two years preceding the submission of the application. The heirs of the debtor merchant may, during the year following
.his death, request restructuring of his activity with the approval of all heirs
.It is not permissible to restructure the company while it is in the process of liquidation
Article (7)
It is not permissible to submit a restructuring application in the event that a final ruling is issued declaring the debtor merchant
.bankrupt, or a ruling is issued to open protective settlement procedures
Submitting a restructuring application will result in the suspension of the bankruptcy and protective settlement applications until
.the restructuring application is decided upon
It is not permissible to submit another request for restructuring until three (3) months have passed from the date of rejection or
.filing of the previous request
Article (8)
The restructuring request must include the reasons for the financial and administrative turmoil, the date of its inception, the
measures taken to avoid its occurrence or treat its effects, and the measures that the debtor merchant deems necessary to get out
of it. The request must be submitted within (6) six months from the date of the turmoil in the debtor merchant’s business. Attached
:are the following documents
.A - Documents supporting the data mentioned therein
B - A certificate from the registrar proving that the debtor merchant has done what is required by the special provisions in the
.register for the two years preceding the restructuring request
C - A certificate from the Oman Chamber of Commerce and Industry stating his affiliation with the chamber for the two years
.preceding the restructuring request
.D - A copy of the audited financial statements for the two years preceding the restructuring request
E - A statement of the total personal expenses associated with or related to the accounts of the debtor merchant for the two years
.preceding the restructuring request
F - A detailed statement of the movable assets and real estate of the debtor merchant, and their approximate value when
.requesting restructuring
G - A statement of the names of creditors and debtors, their addresses, the amount of their rights or debts, and the insurances
.guaranteeing them
H - A certificate from the Ministry stating that a restructuring application has not previously been submitted, or a previously filed
.application has been filed, and three (3) months have passed since that
I - A certificate from the registrar stating that the debtor merchant has not been declared bankrupt, or that a protective settlement
.contract has not been concluded
.J - Evidence of payment of the prescribed application fee
If the application is for a company, it must be accompanied by - in addition to the documents mentioned in the previous items - a
copy of the company’s contract and bylaws certified by the registrar, the documents confirming the status of the debtor merchant,
and the decision of the majority of partners, the association of partners, the owner of the company, or the extraordinary general
assembly, as appropriate. Status of the restructuring request, and a statement of the names of the joint partners, their addresses
.and nationalities
These documents must be dated and signed by the debtor merchant, and if some of them cannot be submitted or their information
.completed, the request must include the reasons for that
Article (9)
.Restructuring requests are submitted to the competent department and recorded in the register prepared for that purpose
The competent department must maintain the confidentiality of information related to the restructuring plan requests, unless its
.disclosure is necessary by law, or for the purposes of enforcing the settlement
The second section

examines restructuring and settlement requests
Article (10)
The competent department shall examine the restructuring requests, complete the application documents, prepare them, and
prepare a memorandum of the opponents’ requests and their supports, within a period not exceeding (60) sixty days from the date
.of registering the request
Article (11)
The competent department holds mediation sessions for restructuring requests in the presence of the parties to the dispute, or an
agent authorized on their behalf to settle the dispute. If the concerned party or his agent fails to attend two consecutive sessions,
.the request will be filed
The competent department may meet with the parties to the dispute or their agents, or take each party separately, and take what it
deems appropriate to bring the points of view closer together with the aim of reaching a settlement agreement binding on both
parties. It may seek the assistance of one or more experts from the experts registered in the schedule and assign either party to the
.dispute to pay his fees
Article (12)
If a settlement of the dispute is reached, a settlement agreement shall be drawn up and signed by all parties, detailing the details of
.the agreement and the mediation procedures undertaken
.The competent department confirms the acceptance of the settlement and refers the file to the court for approval
Article (13)
If a settlement is not reached, the application is considered rejected, and the concerned party may appeal this decision before the
court within (15) fifteen days from the date of being notified of the rejection of the application at his address stated in the
application, provided that the court decides on it within (7) seven days from The referral date, and the decision issued in this regard
.shall be final
:Section Three
Restructuring Plan
Article (14)
The competent department may, during the mediation stage, settle restructuring requests, and the court - in all cases - may, at any
stage in which the dispute arises, form a committee called (the restructuring committee) from the experts registered in the
schedule, and this committee is responsible for developing a restructuring plan and managing the assets of the debtor merchant.
And its evaluation, in addition to other tasks assigned to it, and the competent department or the court, as the case may be, is
.responsible for estimating the committee’s fees
Article (15)
The restructuring committee shall submit a report to the competent department or the court, as the case may be, within three (3)
months from the date of assignment, including its opinion on the reason for the disruption in the debtor merchant’s business, the
feasibility of restructuring, and the proposed plan for that, provided that the restructuring plan is implemented within a period not
.More than five (5) years
Article (16)
The competent department shall refer the restructuring plan submitted by the Restructuring Committee - based on the approval of
.the parties signing it - to the court for approval, and in the event of approval, this plan will be binding on its parties
The court may appoint an assistant for the debtor merchant, if it deems it necessary, from among the experts registered in the
roster or others chosen by the parties, provided that the assistant’s fees are determined in accordance with what is agreed upon
between them. In the event that this is not possible, the court shall determine his fees, and the court may - on its own or on its own
.initiative. Upon a justified request from any of the parties to the restructuring plan - replacing the assistant
Article (17)
:The assistant is responsible for the following
.A - Helping the debtor merchant to evaluate his financial and administrative situation
.B - Providing advice and technical support to the debtor merchant
.C - Establishing a mechanism for implementing the restructuring plan procedures
.D - Assisting the debtor merchant in implementing the restructuring plan in cooperation with his creditors
E - Prepare a report every three (3) months regarding the implementation of the restructuring plan, and present it to the
competent department and the parties to the plan to inform them of the progress of its procedures and the extent of the debtor
.merchant’s compliance with it
Article (18)
The debtor merchant continues to manage his funds during the implementation phase of the restructuring plan, and remains
responsible for the resulting obligations or contracts prior or subsequent to the date of approval of the restructuring plan, in a
.manner that does not contravene this plan
Article (19)
The debtor merchant may not carry out any actions that affect the interests of creditors, including sales that are not related to the
practice of his usual business, donation, gift, borrowing or lending, or any of the acts of donation, guarantees, mortgage, or any
.similar act, in violation of Restructuring plan
Article (20)
.Any interested party may resort to court regarding any action related to the restructuring plan during its implementation period
Article (21)
Without prejudice to the provisions of Article (7) of this law, the competent department must file the restructuring request in the
:following cases
.A - If it is not possible to agree on a restructuring plan with the creditors
B - If the debtor merchant does not attach to his request the information or documents set forth in Article (8) of this law, or which
.he was required to submit within the period specified for that
C - If the debtor merchant does not meet the costs and expenses necessary for the restructuring procedures, including the
.assistant’s fees, or if it turns out that his assets are not sufficient to meet them
.D – The disappearance of the reasons that prompted the debtor merchant to submit a restructuring request
E - If the restructuring procedures are inappropriate for the debtor merchant based on the data and documents submitted with the
.application, or based on the report prepared by the restructuring committee
Article (22)
After the restructuring plan is approved, it is prohibited to file any lawsuit between the debtor merchant and the parties who signed
the plan if it is related to the plan’s procedures or progress. The statute of limitations related to their lawsuits, claims, and debts
.shall be suspended until the end of the implementation of the restructuring plan
Any lawsuit or judicial order requested by the parties signing the plan that would hinder its implementation is included in the
.prohibition stipulated in the previous paragraph
Article (23)
The restructuring plan shall end upon completion of its implementation, and it may be terminated before that if the financial and
administrative conditions of the debtor merchant improve and he repays his debts, or if the plan cannot be implemented or is
violated for any reason, based on a request submitted by the parties signing the plan, and a court decision shall be issued for
.termination
:Chapter Two
.Protective Conciliation
Section One
Procedures for Requesting Protective Conciliation :
Article (24)
The debtor merchant may request a protective settlement if his financial business is disturbed in a way that would lead him to stop
paying his debts, and he has not committed fraud or an error that would not be the result of an ordinary debtor merchant, provided
.that he has practiced trade during the two years preceding the submission of the application
Article (25)
It is permissible for those to whom the merchant has transferred by inheritance or will to request a protective settlement if they
decide to continue the trade, and the merchant in debt before his death was among those who may request a settlement, in
. .accordance with the provisions of Article (24) of this law, within (3) three months from the date of death
If the heirs or legatees do not all agree on the request for protective settlement, the court must hear the statements of those who
.object to the request, and then decide on it according to the interests of those concerned
Article (26)
With the exception of joint-venture companies, every commercial company may request a protective settlement if it meets the
conditions stipulated in Article (24) of this law and after obtaining permission to do so from the majority of partners in joint and
limited partnerships, and from the extraordinary general assembly in joint-stock companies and the association of partners in joint-
stock companies. Limited liability companies and one-person company owners. However, it is not permissible to request
.reconciliation for the company while it is in the process of liquidation
.It is permissible to request a protective settlement from the actual company
Article (27)
.During the implementation of the protective settlement, the debtor merchant may not request another settlement
Article (28)
A request for protective conciliation shall be submitted to the court stating the reasons for the financial disturbance, the
:conciliation proposals, and guarantees of their implementation. The following documents must be attached to the request
.A - Documents supporting the data mentioned therein
B - A certificate from the registrar proving that the debtor merchant has done what is required by the special provisions in the
.register for the two years preceding the submission of the application
C - A certificate from the Oman Chamber of Commerce and Industry stating his affiliation with the Chamber for the two years
.preceding the submission of the application
D - A copy of the audited financial statements of the debtor merchant for the two years preceding the submission of the
.application
E - A statement of the total personal expenses associated with or related to the accounts of the debtor merchant for the two years
.preceding the submission of the application
F - A detailed statement of the movable assets and real estate of the debtor merchant, and their approximate value when
.submitting the application
G - A statement of the names of creditors and debtors, their addresses, the amount of their rights or debts, and the insurances
.guaranteeing them
H - A certificate from the Ministry stating that a restructuring application has not previously been submitted, or a previously filed
.application has been filed, and three (3) months have passed since that
I - A certificate from the registrar stating that the debtor merchant has not been declared bankrupt or has entered into a protective
.settlement
.J - Evidence of payment of the prescribed application fee
If the request is for a company, it must be accompanied by, in addition to the documents mentioned in the previous items, a copy of
the company’s contract and bylaws, certified by the registrar, the documents confirming the status of the debtor merchant, and the
decision of the majority of partners, the association of partners, the owner of the company, or the extraordinary general assembly,
as appropriate. The conditions for requesting a protective settlement, and a statement of the names of the joint partners, their
.addresses and nationalities
These documents must be dated and signed by the applicant for protective settlement. If some of them cannot be submitted or
their information completed, the application must include the reasons for this, and the court secretariat shall prepare a report of
.receipt of these documents
The judge may oblige the debtor merchant, within the period he determines, to submit additional documents or information about
.his financial situation
Article (29)
If a request is submitted to the court to declare the debtor merchant bankrupt, and another requests for protective settlement, the
.bankruptcy declaration request may not be decided until after the settlement request is decided
:The second section

deciding on the request for protective settlement
Article (30)
The court considering the protective settlement request may order that precautionary measures be taken on the debtor merchant’s
funds until the request is decided, and it may take measures that enable it to gain insight into the debtor merchant’s financial
.situation and the reasons for its turmoil
The court shall consider the request for protective settlement in a non-public session, as a matter of urgency, and shall decide on
.the request with a final ruling
Article (31)
:The court shall reject the request for protective settlement in the following circumstances
A - If the applicant for protective settlement does not submit the documents and data stipulated in Article (28) of this law, or
.submits them incomplete without justification
B - If the debtor merchant has previously been convicted of a bankruptcy crime or a crime of forgery, theft, fraud, breach of trust,
.or embezzlement of public funds, unless he has been rehabilitated
.C - If he quits trading, closes his shop, or flees
Article (32)
If the court rules to reject the request for protective settlement, it may sentence the debtor merchant to a fine of not less than
(500) five hundred Omani Riyals and not more than (1,000) one thousand Omani Riyals if it becomes clear to it that he deliberately
.misled the court into causing disturbance in his activity, or intentionally caused disturbance in it
Article (33)
If the court rules to accept the protective settlement, it must order the opening of settlement procedures, and the ruling must
:include the following
.A - Assigning a judge to the court to supervise the protective settlement procedures
.B - Appointing one or more conciliation trustees to initiate and follow up on protective conciliation procedures
The court may order, in the opening of protective conciliation proceedings, that the debtor merchant deposit in the court
secretariat a cash amount determined by the court to meet the expenses of the proceedings. The court may order the cancellation
or suspension of the conciliation proceedings if the debtor merchant does not deposit the aforementioned amount within the
.specified time
Article (34)
The conciliation trustee shall be appointed from among the experts registered in the roster, and he must record on a daily basis all
actions related to the protective conciliation in a special notebook whose pages are numbered, and the conciliation judge shall affix
his signature or stamp to them, and mark in the notebook indicating the completion of the conciliation work, and the court, the
.conciliation judge and his parties shall have access to it
Section Three
Appealing the decisions of the magistrate judge :
Article (35)
Taking into account the provisions of Article (30) of this law, it is permissible to appeal the decisions of the magistrate judge, and
the appeal shall be submitted within (10) ten days from the date of filing the decision, in a statement deposited with the secretariat
of the court and announced to the concerned parties. The court shall consider the appeal in the first session without the
.involvement of a judge. Reconciliation in his view
Article (36)
The appeal shall result in the suspension of implementation of the magistrate judge’s decision until the court decides on it, unless it
.orders its continued implementation
If the appeal is rejected, the court may sentence the appellant to a fine not exceeding (1,000) one thousand Omani riyals, if it
.becomes clear to it that he deliberately obstructed the implementation of the magistrate judge’s decision
:Section Four
Opening of protective reconciliation procedures
Article (37)
The court secretariat shall notify the conciliation secretary of the decision issued appointing him immediately upon its issuance.
The conciliation secretary shall, within (5) five days from the date of notification, enter the ruling by opening the protective
composition procedures in the registry and publishing its summary accompanied by an invitation to the creditors to meet in a daily
newspaper or any other widely used means of publication that he determines. The conciliation judge and the conciliation trustee
must send, within the aforementioned date, the invitation to the meeting, along with the conciliation proposals, to the creditors
.whose addresses are recorded
Article (38)
Immediately upon issuance of the ruling, the conciliation judge shall open protective conciliation procedures by approving the
financial statements of the debtor merchant on the date of assignment, and affixing his signature to them. The conciliation
secretary shall, within (24) twenty-four hours from the time of his notification of the issuance of the ruling, initiate procedures for
.inventorying the debtor merchant’s funds in his presence or his representative
Article (39)
After the issuance of the ruling to open protective settlement procedures, the debtor merchant will continue to manage his funds
under the supervision of the settlement trustee, and he may carry out all the normal actions required by his commercial activities.
He may not make any donations after the issuance of the aforementioned ruling, and such donations are not considered effective
.against the creditors
After the issuance of the ruling to open protective settlement procedures, the debtor merchant may not conclude a settlement or
mortgage of any kind, or conduct a transfer of ownership that is not required by his normal commercial activities except after
obtaining permission from the peace judge, and without prejudice to the rights of the person to whom the transfer is made in good
.faith. Any action taken to the contrary shall be protested against the creditors
Article (40)
All lawsuits and implementation procedures against the debtor merchant shall cease as soon as the protective settlement
procedures are opened. As for the lawsuits filed by the debtor merchant and the implementation procedures that he initiated, they
.will remain in effect with the inclusion of the settlement trustee in them
After the issuance of the ruling to open protective settlement procedures, it is not permissible to adhere to the registration of
.mortgages and lien rights imposed on the debtor merchant’s funds vis-à-vis the creditors
Article (41)
The issuance of a ruling to open protective settlement procedures does not result in the maturity of the debts owed by the debtor
.merchant, or the cessation of their proceeds
Article (42)
If, after submitting a request for protective settlement, the debtor merchant conceals or destroys part of his funds, or performs
actions in bad faith that are harmful to creditors, or actions that violate the provisions of Article (39) of this law, the court shall rule
.on its own initiative to cancel the settlement procedures
Article (43)
All creditors, even if their debts are not in a state of payment or are guaranteed by special insurances or fixed by final rulings, must
deliver to the conciliation trustee, within (15) fifteen days from the date of publishing the summary of the ruling to open the
protective conciliation procedures in accordance with Article (37) of this law, the originals of the documents. Their debts are
accompanied by a statement of these debts and their guarantees - if any - and their amount in Omani Riyals. As for creditors
residing outside the Sultanate, they must send the statement and documents to the conciliation secretary. The deadline for
submitting the original documents and a statement of the debts or their guarantees is (30) thirty days from the date of publishing
.the summary of the ruling at the opening of Reconciliation procedures
:Section Five
List of debts and their verification
Article (44)
After the expiry of the period stipulated in Article (43) of this law, the conciliation trustee shall prepare a list called the “list of
debts,” which includes the names of the creditors who have requested to participate in the protective composition procedures, a
statement of the amount of each debt separately, the documents that support it, and the insurances that guarantee it - if any. -
Whatever he sees fit regarding its acceptance or rejection, and he may ask any of the creditors to provide clarifications about the
.debt, complete its documents, or modify its amount or characteristics
Article (45)
Every ordinary creditor has the right to vote on the protective settlement, even if he receives part of his debt from one of the
.obligors to the debtor merchant or from his guarantors
Article (46)
The conciliation secretary must deposit the list of debts with the court secretariat within (40) forty days from the date of issuance
of the ruling opening the protective conciliation procedures. If necessary, this period may be extended by decision of the
.conciliation judge
The conciliation secretary shall, within three (3) working days from the date of deposit, publish a statement of the deposit in two
.widely circulated daily newspapers determined by the conciliation judge
.Any interested party may view the list of debts deposited with the secretariat of the court
Article (47)
The debtor merchant and every creditor whose name appears in the list of debts may dispute the debts listed therein within (10)
ten days from the date of publishing the statement of filing the list in the newspapers, and the dispute shall be submitted to the
.secretariat of the court
Article (48)
Creditors who have not submitted the originals of their debt documents within the time stipulated in Article (43) of this law, nor
creditors whose debts have not been accepted permanently or temporarily, may participate in the protective settlement
.procedures
Article (49)
After completing the debt investigation, the conciliation judge shall set a time for the creditors’ meeting to deliberate on the
protective settlement proposals. An invitation to attend this meeting shall be sent to every creditor who has accepted his debt,
.whether final or temporary. The conciliation judge may order the invitation to be published in a widely circulated daily newspaper
Article (50)
After the expiration of the period stipulated in Article (47) of this law, the conciliation judge shall draw up a final list of undisputed
debts, and mark the statement regarding the debt indicating its acceptance or the amount accepted. The conciliation judge may
. .consider the debt to be disputed, even if no dispute has been submitted regarding it
The conciliation judge shall decide on the disputed debts within (30) thirty days from the expiration date of the dispute period, and
the court secretariat is obligated to notify the concerned parties of the date of the session at least three (3) days before it is held,
.and to inform them of the decision issued in the dispute immediately upon its issuance
Article (51)
The decision issued by the conciliation judge to accept or reject the debt may be appealed before the court within (10) ten days
from the date of filing the decision or notification thereof. The appeal shall not result in stopping protective conciliation procedures
.unless the court orders that
Before deciding on the appeal, the court may order the temporary acceptance of the debt at an amount it estimates, unless a
.criminal case has been filed against it
.If the dispute over the debt is related to its securities, it must be temporarily accepted as an ordinary debt
Article (52)
The conciliation trustee shall submit to the court secretariat at least five (5) days before the time specified for the creditors’
meeting, a report on the debtor merchant’s financial condition and the reasons for its disturbance, and a statement of the names of
the creditors who have the right to participate in the protective composition procedures. The report must include the conciliation
.trustee’s opinion on the matter. Conditions proposed by the merchant debtor for settlement
.Any interested party may ask the magistrate judge for permission to review the aforementioned report
Article (53)
The conciliation judge shall preside over the creditors’ meeting. The debtor merchant must attend in person or a representative of
the debtor company, as the case may be, and it is not permissible for him to appoint an agent on his behalf to attend in his place
.except by virtue of a special power of attorney
It is not permissible to deliberate on the terms of the protective settlement except after reading the report of the settlement
trustee referred to in Article (52) of this law, and the debtor merchant may request that his conditions for the settlement be
.amended during the deliberations
:Section Six
Making a Protective Reconciliation
Article (54)
The protective settlement shall not take place except with the approval of the majority of the creditors whose debts have been
accepted permanently or temporarily on the condition that they hold two-thirds of the value of these debts. Creditors who did not
.participate in voting shall not be counted in these two majorities, nor shall their debts be counted
If the protective composition concerns a company that has issued bonds or instruments whose value exceeds one-third of its total
debts, the composition may not be carried out unless approved by the general assembly of the group of owners of these bonds or
.instruments
Article (55)
The spouse of the applicant for a protective settlement, or his relatives and in-laws up to the fourth degree, may not participate in
.the settlement deliberations or vote on its conditions
If one of the creditors whose debts are accepted permanently or temporarily assigns his debt to a third party after the issuance of
.the ruling to open protective settlement procedures, the assignee may not participate in the settlement deliberations or vote on it
Article (56)
Creditors - holders of real or movable deposits stipulated on the assets of the applicant for a settlement, whether these deposits are
on movable property or real estate - may not participate in voting on the protective settlement with their debts secured by the
aforementioned insurances unless they waive these deposits in advance, and the waiver may be limited to Part of the insurance,
provided that it is not less than the equivalent of one-third of the debt, and the waiver is recorded in the minutes of the
.reconciliation session
If one of the creditors mentioned in the previous paragraph participates in voting on the settlement without declaring the waiver of
.all or part of his security, this will be considered a waiver of all of the security
In all cases, the waiver of the insurance will not be final unless the settlement is concluded and ratified by the court. If the
.settlement is invalidated, the insurance included in the waiver is returned
Article (57)
The protective settlement shall be signed in the session in which it was voted on, otherwise it shall be invalid. If one of the two
.majorities stipulated in Article (54) of this law is not achieved, the deliberation shall be postponed for a period of (10) ten days
It is permissible for the creditors who attended the first meeting or were represented in it and signed the minutes of the
composition not to attend the second meeting. In this case, their approval of the protective composition in the first meeting will
remain valid and effective in the second meeting unless they attend this meeting and withdraw or amend their previous approval, or
If the debtor merchant makes a fundamental amendment to his proposals regarding reconciliation in the period between the two
.meetings
Article (58)
A report shall be drawn up of what took place in the protective settlement session, signed by the settlement judge, the settlement
.trustee, the debtor merchant, and the creditors present
Every creditor who has the right to participate in the deliberations of the protective composition may inform the conciliation judge
in writing of his objection to the composition and its reasons, within (10) ten days from the date of signing the composition
.minutes
The conciliation judge must, within (7) seven days from the expiry of the period stipulated in the previous paragraph, send the
protective conciliation report to the court that issued the order to open the conciliation proceedings for ratification, and attach to
it a report from the conciliation judge on the financial condition of the merchant debtor, the reasons for the disturbance in his
.business, the conciliation conditions, and a statement. The objections presented to the reconciliation and their reasons
Article (59)
Every creditor who has not agreed to the protective composition has the right to attend the ratification session and raise his
objection. The court, after hearing the statements of the debtor merchant and the creditors present, shall decide to ratify the
.composition, or to refuse to ratify it
It is not permissible to appeal the rulings issued to ratify the protective settlement, and the debtor merchant may seek
reconsideration of the ruling issued to refuse to ratify the settlement within (15) fifteen days from the date of its issuance or
.notification to him, as the case may be
If the court refuses to object to the protective settlement, it may sentence the objector to a fine of no less than (100) one hundred
.Omani Riyals and not more than (500) five hundred Omani Riyals if it is found that he deliberately obstructed the settlement
Article (60)
The protective settlement may include granting the debtor merchant deadlines to settle his debts, and it may also include absolving
.the debtor merchant of part of the debt
It is permissible to conclude a protective settlement on the condition of payment if the merchant-debtor relents within a period
specified in the terms of the reconciliation, provided that it does not exceed (5) five years from the date of ratification of the
reconciliation. The merchant-debtor is not considered to have relented unless his assets exceed the debts owed by him by an
.amount equivalent to (10). %) At least ten percent
:Section Seven
Ratification of the protective settlement
Article (61)
The conciliation secretary must publish a summary of the ruling issued ratifying the protective composition in the Official Gazette
within fifteen (15) days from the date of its issuance. The summary of the ruling must include the name of the debtor merchant, his
.domicile, his registration number in the register, the court that ratified the conciliation, and the date of the ratification ruling
Article (62)
The protective settlement shall apply as soon as the ruling is issued ratifying it to all creditors whose debts are considered ordinary
.and not secured by a lien or mortgage, even if they do not participate in its procedures, or do not agree to its conditions
The protective settlement does not benefit the debtors who are in solidarity with the debtor merchant or his guarantors in the
debt. However, if the settlement is concluded with a company, the partners responsible for all their funds for the company’s debts
.will benefit from its conditions, unless the settlement contract stipulates otherwise
The protective settlement does not apply to the alimony debt, nor to the debts that arose after the issuance of the ruling to open
.the settlement procedures
Article (63)
The court that ratified the protective composition may grant the debtor merchant - upon his request - and after hearing the
creditors’ statements, deadlines for repaying debts that are not subject to the composition, and which arose before the issuance of
the ruling to open the procedures, provided that the deadlines granted by the court do not exceed the term stipulated in the
.composition. This ruling applies to alimony debts
The ratification of the protective settlement does not result in depriving the debtor merchant of deadlines that are longer than the
.term stipulated in the settlement contract
Article (64)
In its ruling on ratifying the protective composition, the court orders - based on a report from the conciliation judge - the retention
of the conciliation trustee or the appointment of a supervisor from among the creditors or others to monitor the implementation
.of the terms of the composition and inform the court of any violations of these terms that occur
The conciliation secretary or the censor, as the case may be, shall mark on the debt instrument the amounts paid to the creditors,
and the creditor must deliver to the debtor merchant a receipt for what has been received, signed by the conciliation secretary or
.the censor, as the case may be, under the supervision of the conciliation judge
The conciliation secretary or the censor shall request from the court that ratified the protective conciliation, within (10) ten days
from the completion of the implementation of the terms of the conciliation, a ruling terminating the procedures, and this request
.shall be published in accordance with the provisions of Article (61) of this law
The ruling to terminate the procedures shall be issued within thirty (30) days from the date of publication, and its summary shall be
.recorded in the register
Article (65)
The court - upon the request of any creditor to whom the conditions of the protective settlement apply - may order its annulment
:in the following circumstances
.A - If the debtor merchant does not implement the terms of the protective settlement as agreed upon
B - If, after ratifying the protective settlement, the debtor merchant acts in a way that transfers ownership of his store or any of his
.other properties without acceptable justification
C - If the debtor merchant dies, and it becomes clear that there is no hope of implementing or completing the protective
.settlement
Creditors are not obligated to return what they received of their debts before the ruling to annul the protective composition, and
the annulment of the composition does not result in the release of the guarantor who guarantees the implementation of the terms
of the composition. The guarantor must be required to attend the session in which the request to annul the composition is
.considered
Article (66)
The protective settlement shall be invalidated if after its ratification it appears that there has been fraud on the part of the debtor
merchant. In particular, concealment of funds, concealment of debts, fabrication of them, or intentional exaggeration of their
.estimate shall be deemed fraudulent
Any interested party may request the annulment of the protective settlement within (6) six months from the day on which the fraud
appears, otherwise the request will be considered unacceptable. In all cases, the request will not be accepted if it is submitted after
one year has passed from the date of issuance of the ruling ratifying the settlement, and creditors are not obligated to return it.
What they received of their debts before the ruling to invalidate the settlement, and the debtor merchant is discharged to the
extent that it was paid, and invalidating the settlement results in the release of the guarantor who guarantees the implementation
.of the conditions of the settlement
The court that issued the ruling ratifying the protective settlement has jurisdiction to hear the lawsuit for invalidating the
.settlement
Article (67)
The conciliation judge shall estimate the fees of both the conciliation secretary and the censor, if he is not a creditor. The judge’s
decision in this regard shall be deposited with the secretariat of the court on the day following its issuance. Any interested party
may object to the decision before the court within (15) fifteen days from the date of his learning of it. The ruling issued on the
.objection shall be final
Article (68)
The court may - on its own initiative or based on a report from the conciliation judge - order in the ruling to terminate the
protective conciliation procedures and pay a reward to the supervisor if he is one of the creditors, and it is found that he has
.exerted an extraordinary effort in his work, and the financial condition of the debtor merchant allows this
Chapter Two
.Bankruptcy :
Chapter One
.Declaration of Bankruptcy :
Section One
Application for Declaration of Bankruptcy :
Article (69)
Any merchant who stops paying his commercial debts as a result of disruption in his commercial business may request bankruptcy.
Stopping payment of the debt is considered evidence of business disruption unless proven otherwise. Bankruptcy does not arise
except by a ruling issuing a declaration of bankruptcy, and without this ruling there is no consequence in stopping payment of
.debts. No effect unless the law stipulates otherwise
Article (70)
The debtor merchant is declared bankrupt by a ruling issued upon his request or the request of one of the creditors. The court may
.decide to declare bankruptcy on its own initiative
It is also permissible to declare the bankruptcy of the debtor merchant after his death or retirement from trade if he dies or retires
from trade, while he is in a state of cessation of payment. The bankruptcy declaration application must be submitted within the year
following his death or retirement from trade. This period does not apply in the case of retirement from trade except from the date
.of deletion of his name. Merchant debtor from register
The heirs of the debtor merchant may request the declaration of his bankruptcy after his death, taking into account the period
mentioned in the previous paragraph. If some of the heirs object to the declaration of bankruptcy, the court must hear their
.statements, then decide on the request according to the interests of those concerned
In the event of the death of the debtor merchant, the bankruptcy filing shall be announced to the heirs in the deceased’s last
residence. The creditor’s claim to declare the debtor merchant bankrupt under a fully secured debt shall not be accepted unless the
.value of the debt exceeds the value of the guarantee
Article (71)
The debtor merchant may request his bankruptcy to be declared within (15) fifteen days from the date he stops paying, through a
request submitted to the court secretariat stating the reasons for stopping payment, and the following documents are attached to
:it
.A - Originals of commercial books
.B - A copy of the last audited balance sheet and profit and loss account
C - A statement of the total personal expenses associated with the accounts of the debtor merchant or related to him for the two
.years preceding the filing of the bankruptcy application or for the period of his work in trade if it is less than that
D - A detailed statement of the movable funds and real estate of the debtor merchant, and their approximate value on the date of
.stopping payment, as well as the cash amounts deposited in his name with banks, whether in the Sultanate or abroad
E - A statement of the names of creditors and debtors, their addresses, the amount of their rights or debts, and the insurances
.guaranteeing them, if any
F - A statement of non-fulfillment protests related to commercial papers filed against the debtor merchant during the two years
.preceding the filing of the bankruptcy application
G - A certificate from the registry stating that no ruling was issued to open protective settlement procedures, and a statement
.indicating that he did not submit a request for restructuring
The documents referred to in the previous paragraph must be dated and signed by the debtor merchant. If it is not possible to
submit some of these documents or complete their information, the debtor merchant must explain the reasons for this, and the
.court secretariat shall prepare a report of receipt of these documents
The court may oblige the debtor merchant, within the period it specifies, to submit additional documents or information about his
.financial situation
Article (72)
Every creditor with a commercial debt that is currently paid and free of dispute may request a ruling declaring the bankruptcy of
the debtor merchant if he stops paying the debt. A creditor with a current civil debt has this right if he proves that the debtor
.merchant has stopped paying his outstanding commercial debts, in addition to his civil debt
The creditor of a deferred commercial debt has the right to request bankruptcy if the debtor merchant does not have a known
domicile within the Sultanate, or if he flees, closes his shop, proceeds to liquidate it, or performs actions harmful to his creditors,
.provided that the creditor submits evidence that the debtor merchant has stopped paying. His commercial debts status
The creditor requests the declaration of the bankruptcy of the debtor merchant with a request submitted to the court secretariat
to take precautionary measures against the debtor merchant, and to state the circumstances from which it can be inferred that the
.debtor merchant has stopped paying his debts
The application must be accompanied by evidence that an amount of (200) two hundred Omani Riyals has been deposited with the
.court secretariat to pay the expenses of publishing the ruling declaring bankruptcy in the Official Gazette
Article (73)
A request to declare bankruptcy of the debtor merchant will not be accepted because he has stopped paying the fines, taxes, fees,
.or social security fees he owes
:Section Two
Judgment declaring bankruptcy
Article (74)
If the court decides to declare the debtor merchant bankrupt on its own initiative in accordance with the first paragraph of Article
(70) of this law, the court secretariat must announce it on the day of the session, and his failure to attend or to express his opinion
.does not prevent a ruling on the bankruptcy declaration case
Article (75)
Bankruptcy claims shall be heard expeditiously, and the rulings issued therein shall be immediately enforceable without bail, unless
.otherwise stipulated
Article (76)
The court hearing the bankruptcy case may order that precautionary measures be taken over the debtor merchant’s funds or their
management for a period of (3) three months, renewable for additional periods until the case is decided. It may also take measures
.that enable it to gain knowledge of the debtor merchant’s financial condition and the reasons for its cessation. About payment
Article (77)
The court has jurisdiction to hear all lawsuits arising from the bankruptcy and lawsuits against others in the bankruptcy or against
.others
The lawsuit is considered to arise from the bankruptcy in particular if it relates to its funds, management, or assets, or if its
.resolution requires the application of the provisions of this law
Article (78)
In the bankruptcy declaration ruling, the court sets a temporary date for stopping payment, appoints a bankruptcy administrator,
assigns one of the court’s judges to be a bankruptcy judge, orders seals to be placed on the debtor merchant’s store until an
.inventory of his funds is completed, and sends a copy of the ruling to the public prosecution
Article (79)
The court may use, in determining the date of stopping payment, every action, statement or behavior issued by the debtor
merchant, which reveals the disturbance in his business or his attempt to continue his commercial activity by means that are illegal
or harmful to his creditors, and this includes in particular the debtor merchant’s attempt to flee. Or hiding his money, selling it at a
.loss, contracting loans on exorbitant terms, or engaging in irresponsible speculation
If the bankruptcy declaration ruling does not specify the date on which the debtor merchant stopped paying, the date of issuance of
.the bankruptcy declaration ruling is considered a temporary date for stopping payment
If the bankruptcy declaration ruling was issued after the death of the debtor merchant or after his retirement from trade, and the
date of cessation of payment was not specified, the date of death or retirement of trade shall be considered a temporary date for
.cessation of payment
Article (80)
The court may, on its own initiative, or upon the request of the debtor merchant, one of the creditors, the bankruptcy administrator,
or other interested parties, amend the temporary date for stopping payment, until the date of depositing the final list of debts with
the secretariat of the court. After the expiration of this period, the designated date for stopping is considered. Stop paying
.permanently
In all cases, the date of stopping payment may not be returned to more than two (2) years prior to the date of issuance of the ruling
declaring bankruptcy, and the bankruptcy administrator shall record the ruling by amending the date of stopping payment in the
.register
Article (81)
The secretariat of the court that issued the ruling declaring bankruptcy shall notify the bankruptcy administrator immediately upon
.issuance of the ruling to commence bankruptcy work, and the bankruptcy administrator must record the ruling in the registry
The bankruptcy administrator shall publish a summary of the ruling in the Official Gazette within (2) two weeks from the date of its
issuance. The summary shall include the name of the bankrupt debtor, his domicile, his registration number in the register, the
court that issued the ruling, the date of its issuance, the temporary date of cessation of payment, and the name of the bankruptcy
judge. The name and address of the bankruptcy manager. The publication also includes an invitation to creditors to present their
.debts in the bankruptcy
In the event that the payment cessation date is amended, the publication must include, in addition to the aforementioned data, the
.new date determined by the court
The bankruptcy administrator shall also record the summary in the name of the group of creditors in the real estate registry within
(30) thirty days from the date of issuance of the ruling. This registration shall not result in a mortgage or any other security for the
.group of creditors
Article (82)
Any interested party, other than the litigants, may object to the bankruptcy declaration ruling before the court that issued it within
.(15) fifteen days from the date of publishing the summary of the ruling in the Official Gazette
Article (83)
If the debtor merchant requests the declaration of his bankruptcy and the court rejects the request, it may sentence him to a fine
of not less than (200) two hundred Omani Riyals and not more than (500) five hundred Omani Rials, if it becomes clear to it that he
.intentionally faked bankruptcy, and a summary of the ruling shall be published at his expense. In the Official Gazette
If one of the creditors requests bankruptcy, and the court rejects the request, the creditor will be sentenced to the fine stipulated in
the previous paragraph, and the judgment will be published at his expense in the Official Gazette, if it becomes clear to it that he
deliberately harmed the debtor merchant’s commercial reputation, without prejudice to the right of the debtor merchant to
.request Compensation
Article (84)
If there is no money available in the bankruptcy - at the time of issuance of the bankruptcy declaration ruling - to cover the
expenses of the ruling, its registration, its publication, the placing of seals on the bankrupt debtor’s store, the seizure of his
property, or the lifting of the seizure thereon, these expenses must be paid from the public treasury based on the court’s order, and
they shall be recovered. The public treasury: the amounts it paid by lien on all creditors from the first money entering the
.bankruptcy
Article (85)
If the bankrupt debtor pays all of his commercial debts before the bankruptcy declaration ruling becomes res judicata, the court
.must rule to cancel the bankruptcy ruling, provided that the bankrupt debtor bears all the expenses of the lawsuit
:Section Three
Bankruptcy Administrator
Article (86)
In the bankruptcy declaration ruling, the court shall appoint a legal representative to manage the bankruptcy, called the (bankruptcy
.manager), from among the experts registered in the roster or others, as the case may be
The bankruptcy judge may, on his own initiative, or upon the request of the bankrupt debtor or the controller, order the addition of
.one or more other administrators to the bankruptcy
Article (87)
It is not permissible to appoint a bankruptcy administrator who is a spouse of the bankrupt debtor or a relative of his up to the
fourth degree, or who during the two years preceding the declaration of bankruptcy was his partner, his employee, his accountant,
or his agent, as well as anyone who has previously been convicted of crimes of bankruptcy, theft, or Embezzlement of public funds,
breach of trust, fraud, forgery, bribery, perjury, or any other crime affecting the national economy, or one of the crimes stipulated
.in this law
Article (88)
The bankruptcy administrator manages and maintains the bankruptcy funds, and represents the bankrupt debtor in all lawsuits and
.actions required by this administration
The bankruptcy administrator records on a daily basis all the work related to the administration of the bankruptcy in a special
notebook whose pages are numbered, and the bankruptcy judge places his signature or stamp on them, and marks at the end of the
.notebook indicating its completion
The court, the bankruptcy judge, and the controller have the right to review this book at all times, and the bankrupt debtor also has
.the right to review it with permission from the bankruptcy judge
Article (89)
If there are multiple bankruptcy managers, they must work together and be jointly responsible for their management. The
bankruptcy judge may divide the work among them, or entrust one of them with a specific job. In this case, the bankruptcy manager
.is only responsible for the work he is assigned to do
It is permissible for the bankruptcy managers to delegate each other to carry out the tasks entrusted to them, but they are not
.permissible to delegate others
Article (90)
The bankrupt debtor or the controller may object to the bankruptcy judge against the actions of the bankruptcy administrator
before they are completed. The objection will result in stopping the implementation of these actions. The bankruptcy judge must
.decide on the objection within (7) seven days from the date of its submission, and the bankruptcy judge’s decision will be final
Article (91)
The court may, on its own initiative or upon the request of the bankruptcy judge, the bankrupt debtor, or the controller, order the
dismissal of the bankruptcy manager for reasons that justify this, and the appointment of someone else, or the reduction of the
.number of managers if there are multiple
Article (92)
The bankruptcy manager's fees and expenses shall be estimated by decision of the bankruptcy judge after the manager submits a
report on the end of his administration. The bankruptcy judge may order the disbursement of amounts to the bankruptcy manager
.before submitting the said report, deducting from his fees
:Section Four
Bankruptcy Judge
Article (93)
:In addition to the powers assigned to him under the provisions of this law, the bankruptcy judge shall undertake the following
A - Monitoring the bankruptcy administration, observing the progress of its procedures, and ordering the necessary measures to be
taken to preserve its funds, including assigning the bankruptcy administrator to file lawsuits or initiate other procedures required by
.the bankruptcy administration
.B - Inviting creditors to a meeting in the circumstances specified in the law, and he shall chair these meetings
C - Submitting a report to the court on the status of the bankruptcy every (3) three months, and another report on every dispute
.related to the bankruptcy, which is within the court’s jurisdiction to decide
D - Summoning the bankrupt debtor, his heirs, agents, employees, or any other person to hear their statements regarding
.bankruptcy matters
Article (94)
The bankruptcy judge’s decisions shall be deposited with the court secretariat on the day following their issuance, and he may order
.the court secretariat to notify every interested party of these decisions by the means he deems appropriate
Article (95)
It is not permissible to appeal the decisions of the bankruptcy judge unless the law stipulates that this is permissible, or if the
decision is beyond his jurisdiction. The appeal shall be submitted within (10) ten days from the date of filing the decision in a
newspaper deposited with the secretariat of the court and announced to the concerned parties. The court shall consider it in the
first session following its filing. The appeal, without involving the bankruptcy judge in considering this appeal, and the appeal
.suspends the implementation of the decision until the court decides on it, unless the court orders otherwise
If the court rejects the appeal, it may sentence the appellant to a fine of not less than (100) one hundred Omani riyals and not more
than (300) three hundred Omani riyals, if it becomes clear to it that he deliberately obstructed the implementation of the
.bankruptcy judge’s decision
Article (96)
The court may replace the bankruptcy judge with another judge of the court, and may assign another judge in the event of his
absence, or an impediment prevents him from exercising his duties, or if it is proven that his continued appointment harms the
.interests of the creditors
,Section Five
Monitor
Article (97)
The bankruptcy judge shall appoint one or more controllers from among the creditors who nominate themselves for this purpose.
The bankrupt debtor and each creditor may object to the bankruptcy judge’s decision to appoint the controller without the
objection resulting in stopping the implementation of the decision. The objection shall be submitted to the bankruptcy judge, and it
.must be decided upon within (7) Seven days from the date of submission
Article (98)
.The controller may not be a spouse of the bankrupt debtor, or a relative up to the fourth degree
Article (99)
The Controller, in addition to the powers assigned to him by law, examines the budget and report submitted by the debtor merchant
and the tasks assigned to him by the bankruptcy judge regarding monitoring the work of the bankruptcy administrator, and assists
the bankruptcy judge in this. The Controller may request clarifications from the bankruptcy administrator regarding the progress of
.its procedures, revenues, expenses, and the status of Related lawsuits
Article (100)
The controller does not receive a wage for his work. However, the court may decide for him a total reward for his work if he exerts
.an extraordinary effort, and the financial condition of the bankruptcy allows this
.The controller may be removed by decision of the bankruptcy judge, and the controller is only responsible for his serious mistake
:Section Six
Investigation of bankruptcy debts
Article (101)
The bankruptcy administrator verifies its debts with the assistance of the controller, in the presence of the bankrupt debtor, or after
.notifying him of his presence
If the bankruptcy administrator, controller, or bankrupt debtor disputes the validity of a debt, its amount, or its guarantees, the
bankruptcy administrator must immediately notify the creditor of this, and the creditor may provide written or oral clarifications
.within (10) ten days from the date of receipt of the notification
.Payable debts owed to the government due to fees and taxes of various types are not subject to investigation procedures
Article (102)
After completing the debt investigation, the bankruptcy administrator shall deposit with the court secretariat a list that includes a
statement of its documents, the reasons for dispute therein, if any, and what he deems appropriate regarding their acceptance or
rejection. He also shall deposit a list of the names of the creditors who claim to have special insurances on the bankrupt debtor’s
.funds, indicating the amount. Their debts, the type of insurance, and the funds assigned to them
This deposit must be made within (60) sixty days at most from the date of the second publication in accordance with the provisions
of Article (107) of this law to invite creditors to submit their debts, and the bankruptcy administrator must, within (5) five days from
. .the date of the deposit, publish in a daily newspaper a statement of its receipt
Any interested party may view the list of debts and the statement deposited with the court secretariat. The court secretariat shall
publish the list and statement in the first issue of the Official Gazette issued after the expiration of the five days referred to in the
.previous paragraph, and a copy of it shall also be sent to the bankruptcy judge
Article (103)
The bankrupt debtor and every creditor whose name appears in the list of debts may dispute the debts listed therein within (10) ten
days from the date of publication of the list in the Official Gazette. The dispute shall be submitted to the court secretariat, and the
.court secretariat must present it immediately to the bankruptcy judge
Article (104)
After the expiry of the period stipulated in Article (103) of this law, the bankruptcy judge shall prepare a final list of undisputed
debts within (14) fourteen days at most, and the bankruptcy administrator shall mark the statement to which he attaches the
documents for these debts indicating their acceptance and the amount of the debts accepted. Each debt, and the bankruptcy judge
.may consider the debt to be disputed, even if no dispute has been submitted regarding it
The bankruptcy judge shall decide on the disputed debts within (30) thirty days from the expiration date of the dispute period, and
the court secretariat shall notify the concerned parties of the date of the session at least seven (7) days before it is held. The
.creditors also become in a state of union by law after depositing the final list. For undisputed debts
Article (105)
It is permissible to appeal before the court the decision issued by the bankruptcy judge to accept or reject the debt, within (10) ten
days from the date of issuance of the decision. The appeal shall not result in stopping the bankruptcy proceedings unless the court
orders them to be stopped. The court may, before deciding on the appeal, rule to accept the debt. Temporarily for an amount it
estimates. It is not permissible to appeal the court’s ruling to reject the debt permanently or to accept it. If the appeal against the
debt is related to its securities, it must be accepted temporarily as an ordinary debt. A creditor whose debt is not accepted
.permanently or temporarily shall not participate in the bankruptcy proceedings
Article (106)
All creditors, even if their debts are accompanied by special insurances or are fixed by final rulings, must hand over to the
bankruptcy administrator, following the issuance of the bankruptcy ruling, the original documents of their debts, accompanied by a
statement of these debts and their insurances - if any - and their amount, denominated in Omani Riyals, and the bankruptcy
.administrator shall issue a receipt for receipt of the statement. And debt documents
The statement must include designating a chosen location for the bankruptcy administrator in the court district, and the
bankruptcy administrator will be responsible for returning the documents to the creditors after the bankruptcy is closed, and will be
.responsible for them for a period of one year from the date of the bankruptcy’s end
Article (107)
If all creditors whose names are registered in the balance sheet do not submit the original documents of their debts accompanied
by the statement referred to in Article (106) of this law within the thirty (30) days following the publication of the bankruptcy
declaration ruling and inviting the creditors to submit their debts, the bankruptcy administrator must immediately re-publish it in
.the newspaper. The judge may determine another means of publication, in addition to publication in the Official Gazette
Creditors must submit the originals of their debt documents accompanied by the aforementioned statement within (30) thirty days
.from the date of the second publication in the Official Gazette, otherwise their right to enter into bankruptcy will be forfeited
:Chapter Two
.The effects of the bankruptcy ruling
The first section
The effects of the bankruptcy ruling on the bankrupt debtor :
Article (108)
The bankrupt debtor's civil rights shall be forfeited by declaring his bankruptcy, and he may not perform a public job or task, nor be
.a director or member of the board of directors of any company, until he is restored to his reputation in accordance with the law
It is not permissible for someone who has declared bankruptcy to act on behalf of someone else in managing or disposing of his
money. However, the court may rule, based on a request from the bankruptcy judge, that the bankruptcy manager or the trustee of
the creditors’ union, as the case may be, replace the bankrupt debtor in implementing this delegation on a permanent or temporary
basis, and the court may To authorize the bankrupt debtor to manage the funds of minors - those who must manage their funds - if
.this does not result in harm to them
Article (109)
As soon as the bankruptcy declaration ruling is issued, the bankrupt debtor is restricted from managing and disposing of his funds,
and the actions undertaken by the bankrupt debtor on the day the bankruptcy declaration ruling is issued are considered to have
.occurred after its issuance
If the disposition is one that cannot be invoked against third parties except by registration, registration, or other procedures, it shall
.not apply to the group of creditors unless the disposition has a fixed date before the date of cessation of payment
The handcuffing of the bankrupt debtor does not prevent him from managing and disposing of his money without taking the
.necessary measures to preserve his rights
Article (110)
The handcuff of the bankrupt debtor includes all the funds that belong to him on the day the bankruptcy declaration ruling is issued
and the funds whose ownership transfers to him while he is in a state of bankruptcy. However, the handcuff does not include the
:following
.A - Funds that may not be legally seized, and the expenses that are determined for the bankrupt debtor
.B - Funds owned by someone other than the bankrupt debtor
.C - Rights related to the person of the bankrupt debtor or his personal status
D - Compensations due to the beneficiary in a valid insurance contract concluded by the bankrupt debtor before the issuance of the
bankruptcy ruling. However, the beneficiary is obligated to return to the bankruptcy all insurance premiums paid by the bankrupt
. .debtor starting from the date set by the court to stop payment unless the law stipulates otherwise
Article (111)
.After the bankruptcy declaration ruling is issued, the bankrupt debtor may not fulfill his debts or fulfill his rights
If the bankrupt debtor holds a commercial paper, its value may be paid to him upon its maturity date, unless the bankruptcy
administrator objects to this payment in accordance with the provisions contained in the Commercial Law, and the value of the
.commercial paper shall be deposited in the bankruptcy account
Article (112)
After the bankruptcy declaration ruling is issued, no set-off between the rights of the bankrupt debtor and the obligations he owes
occurs unless there is a connection between them. The connection exists in particular if the rights and obligations arise from a
.single cause or include a current account to which the bankrupt debtor is a party
Article (113)
If an estate is transferred to the bankrupt debtor, his creditors shall have no right over its funds until after the decedent’s creditors
.have recovered their rights from these funds, and the decedent’s creditors shall not have any right over the bankruptcy funds
Article (114)
After the bankruptcy declaration ruling is issued, it is not permissible to file a lawsuit against or against the bankrupt debtor or
:proceed with it, except for the following lawsuits
.A - Claims related to funds and transactions that are not included in the handcuffs of the bankrupt debtor
.B - Lawsuits related to bankruptcy actions that the law permits the bankrupt debtor to carry out
.C - Criminal cases
The court may authorize the inclusion of the bankrupt debtor in lawsuits related to the bankruptcy, and it may also authorize the
.inclusion of the creditor in these lawsuits if he has a special interest in them
If the bankrupt debtor files or is subjected to a criminal lawsuit or a lawsuit related to his person or personal status, the bankruptcy
.administrator must be included in it if it includes financial claims
Article (115)
If, after declaring his bankruptcy, the bankrupt debtor is judged to be compensated for damage he caused to others before filing for
bankruptcy, the adjudged person may enter into bankruptcy with the compensation awarded unless his collusion with the bankrupt
.debtor is proven
Article (116)
The bankruptcy judge - after hearing the statements of its manager - may determine alimony for the bankrupt debtor and his
dependents from the bankruptcy funds based on his request or the request of his dependents. The bankruptcy judge may, at any
.time, based on the request of its manager, reduce the amount of alimony
Article (117)
Taking into account the provisions of Article (108) of this law, the bankrupt debtor may, after the permission of the bankruptcy
judge, practice a new trade using other than the bankruptcy funds, and the creditors whose debts arise in connection with this
.trade shall have priority in recovering their rights from its funds
Article (118)
The bankrupt debtor may not be absent from his domicile without notifying the bankruptcy administrator in writing of his
.whereabouts, and he may not change his domicile except with the permission of the bankruptcy judge
Article (119)
The court - upon the request of the bankruptcy judge - may order, if necessary, to prevent the bankrupt debtor from leaving the
.Sultanate for a period of (3) three months, subject to renewal, if he commits an act that would harm the rights of creditors
The bankrupt debtor may file a grievance against this order before the court without the grievance resulting in a suspension of its
.implementation, and the court may decide at any time to cancel the order preventing people from leaving the Sultanate
:The second section

Effects of the bankruptcy ruling on creditors
Article (120)
By force of law, as soon as the bankruptcy declaration ruling is issued, a group of creditors whose rights against the bankrupt debtor
arose due to a valid reason before the bankruptcy ruling was issued. This group has legal personality and is represented by the
bankruptcy administrator. It is not considered part of the group of creditors who hold debts secured by a mortgage or a special
.lien. Except in cases where they enter bankruptcy as ordinary creditors
Article (121)
Without prejudice to the provisions of Article (115) of this law, it is not permissible to adhere to the debts adjudicated against the
group of creditors according to judgments issued after the declaration of bankruptcy, nor is it permissible to adhere to the
following actions against them if the bankrupt debtor carried them out after the date of stopping payment, and before the ruling to
:declare: Bankruptcy
.A - Giving donations of any kind, except for small gifts that are customary
B - Paying off debts before the due date, regardless of how they are paid. Creating a commercial paper that has not yet matured is
.considered the equivalent of paying off the debt before the due date
C - Payment of outstanding debts with something other than what was agreed upon. Payment through commercial papers or bank
.transfer is considered the same as payment in cash
.D - Everything that is imposed on the funds of the bankrupt debtor as security for a debt prior to the declaration of bankruptcy
It is permissible to rule that any disposition other than what was mentioned will not be enforceable vis-à-vis the group of creditors if
.it is harmful to them, and the recipient knew at the time of the disposition that the bankrupt debtor had stopped paying
If the value of a commercial paper is paid after the date of cessation of payment and before the ruling declaring bankruptcy, it is
not permissible to recover from the holder of the commercial paper what was paid to him. Rather, the drawer or the person on
whose account the commercial paper was withdrawn is required to return the paid value if he knew at the time the commercial
paper was created that the bankrupt debtor would stop paying. In the case of a promissory note, the obligation to return falls on
.the first endorser if he knew at the time of obtaining the promissory note that the bankrupt debtor would stop paying
Article (122)
It is permissible to rule that the rights of mortgage or lien on the assets of the bankrupt debtor are not enforceable against the
group of creditors, if they are recorded after the date of stopping payment, and after the expiration of (30) thirty days from the
date of the report of the mortgage or lien, and the creditor takes the holder of the mortgage or lien next to the mortgage or lien
that It is ruled that this insurance is not enforceable against the group of creditors. However, the aforementioned creditor is not
given from the price resulting from the sale of the property subject to insurance except what he would have obtained assuming the
.validity of the previous mortgage or lien, and the difference goes to the group of creditors
Article (123)
The bankruptcy administrator may, on his own initiative, or upon the request of the bankruptcy judge, request that the actions of
the bankrupt debtor be not enforceable against the group of creditors if the disposition occurred before the issuance of the
bankruptcy ruling. The judgment issued not to enforce the disposition shall apply to all creditors, whether their rights arose before
.the disposition occurred or After it happened
Article (124)
If any disposition is ruled ineffective against the group of creditors, the person to whom it was disposed of is obligated to return to
the bankruptcy what he obtained from the bankrupt debtor pursuant to this disposition or the value of the thing at the time of his
.receipt. He is also obligated to pay the returns or fruits of what he received from the date of receipt
The person to whom it has been transferred shall have the right to recover the compensation he provided to the bankrupt debtor if
this particular consideration was found in the bankruptcy. If it does not exist, the person to whom it has been transferred has the
right to demand from the group of creditors the benefit that accrued to them from the disposal, and to participate in the
.bankruptcy as an ordinary creditor in excess of the value of this amount. Benefit
Article (125)
Lawsuits arising from the application of the provisions stipulated in Articles (120) to (124) of this law shall be dropped after (2) two
.years have passed from the date of issuance of the ruling declaring bankruptcy
Article (126)
After the issuance of the bankruptcy ruling, ordinary creditors or creditors with general lien rights may not file individual lawsuits
.against the bankruptcy or take any other judicial measures against it
The issuance of the bankruptcy ruling shall result in the cessation of the individual lawsuits filed by the creditors mentioned in the
previous paragraph, and the cessation of the implementation procedures initiated by these creditors before the issuance of the
bankruptcy ruling. However, if a day is set for the sale of the bankrupt debtor’s real estate, the implementation procedures may
.continue with the permission of the bankruptcy judge
As for the mortgaged creditors and those with special lien rights on the funds of the bankrupt debtor, they may file individual
lawsuits or continue them against the bankruptcy administrator. They may also file or continue execution on the funds on which
their insurance is located, provided that the bankruptcy judge is notified of the implementation, and the implementation shall be
.against the bankruptcy administrator
Article (127)
The ruling declaring bankruptcy shall extinguish the terms of all monetary debts owed by the bankrupt debtor, whether ordinary or
.guaranteed by a general or special lien
Article (128)
The bankruptcy judge may deduct from the term debt that does not require returns an amount equivalent to the return due for the
.period from the date of the bankruptcy declaration ruling until the date the debt becomes due
Article (129)
The ruling declaring bankruptcy stops the validity of proceeds from ordinary debts with respect to the group of creditors only, and
it is not permissible to claim the proceeds of debts secured by a mortgage or lien except from the amounts resulting from the sale
of the funds guaranteeing these debts. The principal of the debt is deducted first, then the proceeds due before the issuance of the
.judgment declaring bankruptcy, then the proceeds due after Its issuance
Article (130)
Debts subject to a dissolving condition shall participate in the bankruptcy, with the provision of a guarantor. As for debts subject to
.a suspensive condition, their share in the distributions shall be excluded until the outcome of the condition becomes clear
Article (131)
If there are a group of obligors for a single debt, one of them is declared bankrupt, this bankruptcy shall not have any effect on the
other obligors unless otherwise stipulated. If reconciliation is concluded with the obligor who has gone bankrupt, its conditions shall
.not apply to the other obligors
Article (132)
If the creditor collects part of the debt from one of the obligors for one debt, and then the rest of the obligors go bankrupt or one
of them goes bankrupt, the creditor may not participate in the bankruptcy except with the remainder of his debt, and he retains his
right to demand this remainder from the obligor other than the bankrupt debtor, and this obligor may participate in Every
.bankruptcy with what he paid for it
Article (133)
If all those obligated to one debt become bankrupt at once, the creditor may participate in each bankruptcy with all of his debt until
he recovers it in full, including principal, returns, and expenses. The bankruptcy may not have recourse against another bankruptcy
.for what he has paid for it
If the total amount obtained by the creditor exceeds his debt and its liabilities, the excess shall return to the bankruptcy of the
others who are guaranteed according to the order of their obligations in the debt. If this arrangement does not exist, the excess
.shall return to the bankruptcies that have paid more than their share of the debt
Article (134)
The names of the bankrupt debtor's creditors who hold a mortgage or a special lien on movable property or real estate shall not be
.included in the group of creditors except by way of statement
The bankruptcy administrator may, after permission from the bankruptcy judge, pay the debt secured by a mortgage and recover
.the mortgaged items for the account of the group of creditors
Article (135)
The bankruptcy administrator, after the permission of the bankruptcy judge, must pay, within (10) ten days following the issuance of
the ruling declaring bankruptcy, from the bankruptcy money he has in his possession, and despite the presence of any other debt,
the wages, salaries, and amounts due before the ruling declaring bankruptcy is issued for a period of (30) thirty. One day for the
employees of the bankrupt debtor. If the bankruptcy administrator does not have the money necessary to pay these debts, they
.must be paid from the first money entering the bankruptcy, even if there are other debts that precede them in the rank of privilege
Article (136)
Without prejudice to the provisions of Article (140) of this law, the lessor - in the event of termination of the lease of the property in
which the bankrupt debtor practices trade - shall have a privilege to guarantee the rent due to him for the year preceding the
issuance of the bankruptcy declaration ruling and for the current year, and if the movables in the leased property are sold. Or
.transferred, the lessor still retains his right to the concession, whether the lease contract has a fixed date or a non-fixed date
Article (137)
The privilege granted to the government does not include debts arising from taxes of various types, with the exception of the tax
debt owed by the bankrupt debtor for the two years preceding the issuance of the bankruptcy declaration ruling. Other taxes due
.are included in the distributions as ordinary debts
Article (138)
The bankruptcy judge may - based on the proposal of the bankruptcy administrator - order, when necessary, that the first money
entering the bankruptcy be used to satisfy the rights of creditors who have a lien on the movables of the bankrupt debtor, provided
that their names are included in the final list of undisputed debts referred to in the first paragraph of Provision of Article (104) of
.this law: If a dispute arises regarding the concession, payment may not be made except after it has been decided by a final ruling
:Section Three
Effects of the bankruptcy ruling on others
Article (139)
The ruling declaring bankruptcy does not result in the annulment of contracts binding on both sides to which the bankrupt debtor is
.a party unless they are based on personal considerations
If the bankruptcy administrator does not implement the contract or does not continue to implement it, the other party may
request annulment, and every decision taken by the bankruptcy administrator regarding the contract must be presented to the
bankruptcy judge for him to authorize it. The other party may set an appropriate deadline for the bankruptcy administrator to
.clarify his position on the contract
The contracting party may participate in the bankruptcy as an ordinary creditor with the compensation resulting from the
.annulment, unless it is stipulated that the compensation retains the privilege legally assigned to it
Article (140)
If the bankrupt debtor is a tenant of the property in which he carries out trade, the issuance of the bankruptcy ruling does not
result in the termination of the lease contract or the payment of the rent for the period remaining to expire, and every condition to
.the contrary shall be considered null and void
If the lessor has begun execution on the movables located in the property and the execution had not been completed when the
bankruptcy declaration ruling was issued, execution must be carried out within a period of (90) ninety days from the date of this
ruling without prejudice to the lessor’s right to take precautionary measures and to request the eviction of the property. According
.to the general rules
The bankruptcy judge may order a stay of execution for a period of (30) thirty days, renewable once if he deems it necessary, and
the bankruptcy manager must notify the property lessor during the stay of execution period of his desire to terminate the lease
.contract, or to continue it
Article (141)
If the bankruptcy administrator decides to continue the lease contract for the property rented by the bankrupt debtor, he must pay
.the late rent and provide sufficient guarantee to meet the future rent
The lessor may request the bankruptcy judge to terminate the lease contract if the guarantee is insufficient, within (15) fifteen days
.from the date of his notification of the bankruptcy administrator’s desire to continue the lease contract
The bankruptcy administrator may - after obtaining permission from the bankruptcy judge and after the approval of the lessor -
sublet the property or waive the rent in accordance with the provisions regulating the relationship between the landlord and the
.tenant
Article (142)
If the employment contract concluded by the bankrupt debtor in his capacity as an employer is for an indefinite period, the worker
and the bankruptcy administrator may terminate the contract, taking into account the provisions stipulated in the Labor Law. In this
.case, the worker may not claim compensation unless the termination was arbitrary, or without observing notification dates
If the employment contract is for a limited period, it may not be terminated unless it is decided not to continue in trade. In this
case, the worker may demand compensation, and the compensation due to the worker in accordance with this article shall have the
.privilege legally assigned to him
Chapter Three
.Recovery and Bankruptcy Administration :
Section One
The Right of Recovery :
Article (143)
Every person has the right to recover from bankruptcy the things whose ownership or right to recover them is proven to him at the
.time of declaration of bankruptcy
The bankruptcy administrator may, after obtaining permission from the bankruptcy judge, return the item to its owner or the
person who has the right to recover it, and if the return request is rejected, the person requesting it may submit the dispute to the
.court
Article (144)
Items in the possession of the bankrupt debtor may be recovered, as a deposit, or for the purpose of selling them on behalf of their
.owner, or for the purpose of delivering them to him, provided that they are present in the bankruptcy in kind
It is also permissible to recover the price of the goods if it has not been paid in cash, a commercial paper, or by recording it in a
current account between the bankrupt debtor and the buyer, and the recoverer must pay the bankruptcy administrator the rights
.owed to the bankrupt debtor
If the bankrupt debtor has deposited the goods with a third party, it is permissible to recover them from him. If the bankrupt debtor
borrowed by mortgaging the goods and the mortgage creditor did not know at the time of creating the mortgage that the
bankrupt debtor did not own them, then it is not permissible to recover them except after the debt secured by the mortgage has
.been repaid
Article (145)
Commercial papers and other papers of value, delivered to the bankrupt debtor for collection or to be allocated for a specific
payment, may be recovered if they are found in kind in the bankruptcy and their value has not been paid. Currency papers deposited
with the bankrupt debtor may not be recovered unless the person seeking recovery proves that they have been allocated to satisfy
.his right
Article (146)
If the sales contract is terminated by a ruling or by virtue of a condition in the contract before the issuance of the ruling declaring
the buyer’s bankruptcy, the seller may recover all or some of the goods from the bankruptcy, provided that they are available in-
.kind
It is permissible to recover even if the annulment occurred after the issuance of the bankruptcy declaration ruling, provided that the
.recovery lawsuit or the annulment lawsuit was filed before the issuance of this ruling
Article (147)
If the buyer goes bankrupt before paying the price, and the goods are still with the seller, he may withhold them. If the buyer goes
bankrupt after sending the goods to him and before they enter his warehouse or the warehouse of his agent charged with selling
them, the seller may recover possession of them. However, recovery is not permissible if the goods lose their nature after they are
delivered. To the bankrupt debtor, or the bankrupt debtor disposed of it before its arrival without fraud, in accordance with
.ownership or transfer documents
In all cases, the bankruptcy administrator may, after the approval of the bankruptcy judge, request delivery of the goods on the
condition that he pays the seller the agreed upon price. If the bankruptcy administrator does not request that, the seller may insist
.on his right to annulment, request compensation, and participate in the bankruptcy
Article (148)
If the buyer becomes bankrupt before paying the price and after the goods enter his warehouses or the warehouses of his agent in
charge of selling them, the seller may not request annulment of the sale or recovery of the goods, and his right to the lien shall also
be forfeited. Any condition that would enable the seller to recover the goods or maintain his privilege over them is not valid. On the
.group of creditors
Article (149)
Each of the spouses may recover from the bankruptcy of the other his movable and real estate assets if he proves his ownership of
.them, and these funds remain encumbered with the rights that the third party acquired over them in a legal manner
Article (150)
The funds purchased by the spouse of the bankrupt debtor, or which are purchased for the account of this spouse or for the
account of minors who are under the guardianship of the bankrupt debtor from the date he entered into trade, are considered to
have been purchased with the money of the bankrupt debtor, and are included in the assets of his bankruptcy unless proven
otherwise. All debts paid by one of the spouses are owed to his spouse, who Bankruptcy is considered to be in possession of the
.money of the bankrupt debtor spouse unless proven otherwise
Article (151)
Recovery claims directed to the bankruptcy administrator shall expire after one year from the date of publication of the bankruptcy
.declaration ruling
The second section

is to set seals and take an inventory of the bankrupt debtor’s assets
Article (152)
In its ruling declaring bankruptcy, the court must order that seals be placed on the bankrupt debtor’s stores, offices, safes, books,
papers, and movables. The bankruptcy judge shall place the seals immediately upon issuance of the ruling declaring bankruptcy, and
he may designate one of the court’s secretaries for that purpose, and if it becomes clear to the bankruptcy judge that it is possible
to inventory the money and property of the bankrupt debtor. In one day, he or his representative may begin the inventory
immediately without the need to affix seals. A report shall be prepared of the affixing of seals or of the inventory, signed by the
.person who carried out this procedure, and the report shall be delivered to the bankruptcy judge
Article (153)
It is not permissible to place seals on the clothing and movables necessary for the bankrupt debtor and his dependents. The
bankruptcy judge shall specify these things, and they shall be delivered to the bankrupt debtor with a list signed by both the
.bankruptcy judge and the bankrupt debtor
The bankruptcy judge may order, on his own initiative or upon the request of the bankruptcy administrator, not to place seals, or to
:remove them, from the following items
.A - Commercial books
B - Commercial papers and other papers that are due for payment soon or that require procedures to preserve the established
.rights therein
.C - Money necessary to spend on urgent bankruptcy affairs
.D - Items that are subject to rapid damage or immediate decrease in value, or whose maintenance requires heavy expenses
.E - Things necessary to operate the store if it is decided to continue operating it
The items mentioned in the previous paragraph shall be inventoried in the presence of the bankruptcy judge or whomever he
.appoints for this purpose, and shall be delivered to the bankruptcy administrator with a list for him to sign
Article (154)
The bankruptcy judge, upon the request of the bankruptcy administrator, shall order the removal of the seals to begin the inventory
of the bankrupt debtor’s assets. The removal of the seals and the inventory must begin within (5) five days from the date of
issuance of the bankruptcy declaration ruling. The inventory shall be carried out in the presence of the bankruptcy judge or
someone he delegates for that purpose, the bankruptcy manager and one of them. The court secretaries must be notified to the
bankrupt debtor and he may attend. An inventory list shall be drawn up in two copies signed by the bankruptcy judge or his
designee, the bankruptcy administrator, and the court secretary who attended the inventory. One of them shall be deposited with
the court secretariat, and the other shall remain with the bankruptcy administrator and shall be mentioned in the list. Property on
which no seals have been placed or which have been removed. It is permissible to seek assistance from a roster expert or others
.when necessary to conduct the inventory and evaluate the property
Article (155)
If bankruptcy is declared after the death of the debtor merchant, and an inventory list is not drawn up on the occasion of his death,
or if the debtor merchant dies after his bankruptcy is declared, and before starting to draw up the inventory list or before
completing it, the list must be drawn up immediately or continue to be drawn up in the manner specified in Article (154). of this law,
and the heirs must be notified of it and they may attend the inventory procedures. In the event of the death of the bankrupt debtor
after declaring his bankruptcy and completing the inventory list, his heirs or someone on their behalf will take his place in the
.bankruptcy procedures, otherwise the bankruptcy judge will choose someone to represent them in that
Article (156)
After the inventory, the bankruptcy administrator receives the bankrupt debtor’s funds, books, and papers, and signs at the end of
the inventory list to the effect of this. If the bankrupt debtor has not submitted the budget, the bankruptcy administrator must
.prepare it immediately and deposit it with the secretariat of the court
The bankruptcy administrator receives the letters received in the name of the bankrupt debtor and related to his business. The
.bankruptcy administrator may open and keep them, and the bankrupt debtor may review them
Article (157)
The commercial books may not be handed over to the bankruptcy administrator until after the bankruptcy judge closes them. The
bankrupt debtor is invited to attend the closing session of the commercial books, and he may delegate someone else to attend that
session on his behalf. If he or his representative does not attend, the commercial books will be closed without their presence. The
debtor may not The bankrupt person may delegate someone else to attend the book closing session on his behalf, except for
.reasons acceptable to the bankruptcy judge
:Section Three
Bankruptcy Assets Management
Article (158)
The bankruptcy administrator shall carry out all necessary actions to preserve the rights of the bankrupt debtor with others, and
shall claim and fulfill these rights. He shall register the bankrupt debtor’s real rights over his debtor’s real estate, if the bankrupt
.debtor has not made the registration
The bankruptcy judge may, after taking the opinion of the controller and hearing the bankrupt debtor’s statements or notifying him,
.authorize the bankruptcy administrator to conciliate or accept arbitration in every dispute related to the bankruptcy
If the dispute is of indefinite value, or its value exceeds (5,000) five thousand Omani Riyals, then the settlement or acceptance of
arbitration shall not be effective except after the bankruptcy judge ratifies its conditions. The bankrupt debtor is invited to attend
upon ratification, and the bankruptcy judge hears his statements if he attends. His objection shall have no effect, and the
bankruptcy judge’s decision may be appealed before the court if he issued a refusal to ratify the terms of reconciliation or
.arbitration
The bankruptcy administrator may not assign a right to the bankrupt debtor, or acknowledge a third party’s right against him with
.regard to the procedures set forth in this article except in accordance with its provisions
Article (159)
The bankruptcy judge may, upon the request of its manager or the bankrupt debtor, and after taking the opinion of the controller,
authorize the continuation of operating the store, if the public interest, the interest of the debtor merchant, or the interest of the
creditors so requires, and after resorting to a plan to restructure the activity of the debtor merchant as stipulated. In this law, the
bankruptcy judge, upon the request of its manager, appoints someone to manage the store based on the restructuring plan, and
determines his wage. The bankrupt debtor may be appointed to manage, and the wage he receives is considered part of the
expenses assigned to him. The bankruptcy manager supervises whoever is appointed to manage. He must submit a monthly report
.to the bankruptcy judge on the status of trade
The bankrupt debtor, the bankruptcy administrator, and any of the creditors may appeal before the court the decisions of the
.bankruptcy judge in accordance with the previous paragraph
Article (160)
The bankruptcy administrator must submit to the bankruptcy judge, within thirty (30) days from the date of notification of his
appointment, a report on the causes of bankruptcy and the apparent state and circumstances of the bankruptcy. The bankruptcy
judge may extend the time specified for submitting this report for a similar period, and the judge must refer the report with his
observations to the public prosecution. If it becomes clear from the circumstances of the bankruptcy that there is a criminal
.suspicion
The bankruptcy administrator must also submit to the bankruptcy judge reports on the status of the bankruptcy on periodic dates
.determined by the judge
Section Four
Closing and Termination of Bankruptcy :
Article (161)
If the bankruptcy works are halted due to insufficient funds needed to manage it and handle its work, the bankruptcy judge may, on
his own initiative, or based on a report from the bankruptcy manager, or the secretary of the creditors’ union, as the case may be,
.order its closure by a reasoned decision
The bankrupt debtor, every interested party, and the bankruptcy administrator may request the bankruptcy judge to cancel the
closure decision within three (3) months from the date of its issuance, if it is proven that there is sufficient money to meet the
.expenses of completing the bankruptcy work, or if he deposits a sufficient amount for that as estimated by the bankruptcy judge
If the period stipulated in the previous paragraph elapses without anyone submitting a request to the bankruptcy judge to cancel
.the closure decision, the decision shall be considered final
Article (162)
A grievance may be made against the decision to refuse to cancel the bankruptcy closure within (10) ten days from the date of its
issuance, provided that the grievance does not result in stopping the implementation of the decision or interrupting the period
.referred to in Article (161) of this law
Article (163)
The final decision to close the bankruptcy due to insufficient funds results in each creditor having the right to take action and
.initiate individual lawsuits against the bankrupt debtor
If the debt has been finally established in the bankruptcy, the creditor may execute on the assets of the bankrupt debtor based on
an order from the bankruptcy judge in the amount of his debt, and it is considered a final ruling with regard to this execution, and
.an annotation on the debt instrument indicates that the creditor has received this order
.In all cases, the expenses spent on the bankruptcy work must be paid in priority
Article (164)
:The bankruptcy judge shall issue a decision terminating the bankruptcy in the following cases
A - If the debts were realized and resulted in no debts accepted in the bankruptcy, or the debts were limited to penal fines, taxes and
.fees of various kinds, or social insurance, or there was only one creditor, or the debts were combined in the hands of one creditor
.B - Payment of all debts accepted in bankruptcy
.C - Reconciliation with the bankrupt debtor
.D - The bankrupt debtor does not have funds suitable for execution
.E - Liquidating all the funds of the bankrupt debtor and approving the final bankruptcy account
Article (165)
The bankruptcy judge may not order the bankruptcy to be terminated except after reviewing a report from the bankruptcy
manager or the creditors’ union secretary, as the case may be, indicating that one of the cases referred to in Article (164) of this law
.has been achieved
.Bankruptcy ends as soon as the bankruptcy judge issues a decision to terminate it, and the bankrupt debtor regains all his rights
:Chapter Four
Judicial Reconciliation
Article (166)
The bankruptcy judge - upon the request of every interested party, and at whatever stage the proceedings are - may initiate
mediation procedures to reach judicial conciliation, and for this purpose he may order the court secretariat to invite the creditors
.whose debts have been finally or temporarily accepted to attend the deliberation on the conciliation request
The bankruptcy manager or the secretary of the creditors’ union, as the case may be, shall submit a report to the group of creditors
including the status of the bankruptcy, the procedures that have been taken regarding it, and his views on the bankrupt debtor’s
.proposals for reconciliation
Creditors holding real insurances imposed on the bankrupt debtor’s funds may not participate in voting on judicial settlement of
.their debts secured by the aforementioned insurances, unless they waive these insurances in advance
Article (167)
Judicial settlement shall not take place except with the approval of the majority of the creditors whose debts have been accepted
permanently or temporarily and on the condition that they hold two-thirds of these debts. When calculating the aforementioned
two majorities, the debts of the creditors who did not participate in the vote shall be deducted. If none of the aforementioned
.quorums are met, the deliberation shall be postponed until (10) ten. Days after which there is no deadline
The creditors who attended the first meeting or were properly represented in it and signed the minutes of the session may not
attend the second meeting, and their decisions that they took at the first meeting will remain valid unless they attend and amend
.them or the debtor merchant amends his proposals regarding reconciliation in the period between the two meetings
Article (168)
The judicial conciliation report shall be signed by the bankrupt debtor and the creditors at the session in which the conciliation vote
was taken, and the judge shall ratify it, and the conciliation summary shall be published in the publication medium specified by the
.court
Article (169)
It is not permissible to conclude judicial conciliation with a bankrupt debtor who has been sentenced to the penalty of fraudulent
bankruptcy. If an investigation begins with the bankrupt debtor for the crime of fraudulent bankruptcy, consideration of conciliation
.must be postponed
Article (170)
Judging a bankrupt debtor with the penalty of bankruptcy by negligence does not prevent judicial conciliation with him, and if an
investigation begins with the bankrupt debtor for this crime, the creditors have the choice between continuing the conciliation
.deliberations or postponing them
Article (171)
All effects of bankruptcy shall disappear upon the issuance of a ruling ratifying the judicial settlement, including any expense
decided on the bankruptcy funds. The bankruptcy administrator must submit to the bankrupt debtor a final account, and discuss
.the account in the presence of the bankruptcy judge
The bankruptcy administrator's mission ends, and the bankrupt debtor receives his money, books, and papers from him according to
a receipt proving that. The bankruptcy administrator will not be responsible for these things if the bankrupt debtor does not receive
.them within one year from the date of approving the final account, and the bankruptcy judge will write a report of all of the above
Article (172)
The judicial settlement shall be invalidated if, after its ratification, a judgment is issued convicting the bankrupt debtor of one of the
fraudulent bankruptcy crimes. The settlement shall also be invalidated if, after its ratification, fraud is revealed resulting from
concealment of the bankrupt debtor’s assets or exaggeration of his debts. A request to invalidate the settlement must be submitted
within (6) six months. From the day on which the fraud appears, otherwise the request will be unacceptable. In all cases, the request
to invalidate the settlement will not be acceptable if it is submitted after (2) two years have passed from the date of ratification of
.the settlement
Invalidating the settlement results in the release of the guarantor who guarantees the implementation of its conditions, and the
.court that issued the bankruptcy ruling has jurisdiction to hear the lawsuit to invalidate the judicial settlement
Article (173)
If the investigation begins against the bankrupt debtor in the crime of fraudulent bankruptcy after the ratification of the judicial
settlement, or if a criminal case is brought against him in this crime after the ratification of the settlement, the court that issued
the bankruptcy ruling may, upon the request of the controller or any interested party, order to take What precautionary measures it
deems appropriate for the bankrupt debtor’s funds. These measures shall be canceled by law if it is decided to close the
.investigation or a decision is issued that there is no basis for filing a lawsuit or a ruling is issued to acquit the bankrupt debtor
Article (174)
If the bankrupt debtor does not implement the terms of the judicial settlement, it is permissible to request its annulment from the
.court that issued the bankruptcy declaration ruling
Annulment of the reconciliation does not result in the release of the guarantor who guarantees the implementation of its
.conditions, and this guarantor must be assigned to attend the session in which the request to annul the reconciliation is considered
The bankruptcy administrator must, within seven (7) days from the date of issuance of the ruling invalidating or annulling the
settlement, publish a summary of this ruling in a daily newspaper, and in the Official Gazette after the expiration of this period. The
bankruptcy administrator, in the presence of the bankruptcy judge or whomever he delegates for this purpose, shall make an
.inventory of the bankrupt debtor’s funds and prepare List them
Article (175)
In the judgment issued invalidating or annulling the judicial settlement, the court shall appoint a bankruptcy administrator in
.accordance with the provisions of this law, and it may order that seals be placed on the assets of the bankrupt debtor
Article (176)
The bankruptcy administrator shall invite the new creditors - if any - to submit their debt documents in accordance with the debt
verification procedures, and the new debts will be verified without delay, and without re-verifying previously accepted debts,
provided that debts that have been paid in full are excluded, and the remaining debts are reduced to the extent that they have been
.satisfied
Article (177)
The dispositions made by the bankrupt debtor after the ratification of the judicial settlement and before its invalidation or
annulment shall be effective against the creditors, and they may not request their non-enforcement except on the grounds of non-
.enforcement of the disposition in accordance with the provisions of the Civil Transactions Law
The lawsuit referred to in the previous paragraph shall lapse after one year from the date of invalidation or annulment of the
.settlement
Article (178)
After the judicial settlement is invalidated or annulled, their debts are returned to the creditors in full, with regard to the bankrupt
debtor only, and these creditors share in the group of creditors their original debts in full, if they have not received anything of the
amount decided for them in the settlement. Otherwise, their original debts must be reduced by a certain percentage. They got it
.from the aforementioned pot
These provisions shall apply in the event that the bankruptcy of the bankrupt debtor is declared before the completion of the
.implementation of the terms of the settlement
Chapter Five
Reconciliation with the abandonment of funds :
Article (179)
A reconciliation may be concluded between the bankrupt debtor and the creditors, provided that the bankrupt debtor relinquishes
all or some of his property to sell it and distribute its price to the creditors. The provisions of judicial reconciliation shall apply to
.this reconciliation, and the bankrupt debtor shall remain prohibited from disposing of and managing the funds he relinquished
Article (180)
The funds abandoned by the bankrupt debtor shall be sold, and their price shall be distributed in accordance with the rules
.established for the sale and distribution of the bankrupt debtor’s funds in the event of a union of creditors
If the price resulting from the sale of the funds abandoned by the bankrupt debtor exceeds the debts required of him, the excess
.amount must be returned to him
:Chapter Six
Union of Creditors
Article (181)
:Creditors are considered to be in a state of union by law in the following cases
.A - If the debtor merchant does not request reconciliation
.B - If the debtor merchant requests reconciliation, and the creditors reject it
.C - If the debtor merchant obtains a settlement, then it is invalidated or annulled
Article (182)
The bankruptcy judge shall invite the creditors upon the establishment of the state of the creditors’ union to deliberate on the
bankruptcy affairs and consider whether to keep or change the bankruptcy manager. At this stage, the trustee of the creditors’
union shall be called. Creditors who have real deposits imposed on the assets of the bankrupt debtor may participate in these
deliberations and vote without this resulting in the forfeiture of their deposits. If the majority of the creditors present decide to
.change the bankruptcy administrator, the bankruptcy judge must appoint someone else immediately
The former bankruptcy manager must submit to the secretary of the creditors’ union at the time specified by the bankruptcy judge,
.and in his presence, an account of his management, and notify the debtor of the date for submitting the account
.The court may - upon the request of the bankruptcy judge - change the trustee of the creditors’ union if he breaches his duties
Article (183)
The trustee of the creditors’ union may not continue in the business of the bankrupt debtor except with the permission of the
bankruptcy judge, and after obtaining authorization from a majority representing three-quarters of the creditors in number and
amount. The bankruptcy judge may resort to a plan to restructure the activity of the merchant debtor stipulated in the provisions
.of Chapter One of Part One of this. the law
If the implementation of the restructuring plan results in obligations in excess of the funds of the creditors union, the creditors who
agreed to continue trading shall be considered responsible, with their own funds, and without joint liability among them, for the
increase, provided that it results from acts within the limits of the authorization issued by them, and the responsibility of each
.creditor shall be in proportion. His religion
Article (184)
The trustee of the creditors’ union shall deposit the amounts resulting from the sale of the bankrupt debtor’s funds in the court
treasury or a bank determined by the bankruptcy judge, on the day following collection. The creditors’ union trustee shall submit to
the bankruptcy judge a monthly statement on the state of the bankruptcy and the amount of the deposited amounts. The deposited
amounts may not be withdrawn except by order of The bankruptcy judge or a check signed by both the judge and the creditors’
.union secretary
Article (185)
The fees and expenses of bankruptcy administration, the alimony assigned to the bankrupt debtor and his dependents, and the
amounts due to preferred creditors, shall be deducted from the amounts resulting from the sale of the bankrupt debtor’s assets.
The remainder shall be distributed among the creditors in proportion to their realized debts, avoiding the share of disputed debts,
.and shall be reserved until a final ruling is issued to accept them
Article (186)
After the end of the creditor union state, each creditor has the right to execute against the bankrupt debtor to obtain the
remainder of his debt based on an order from the bankruptcy judge for the remainder of his debt. Acceptance of the debt in
bankruptcy is considered a final ruling with regard to this execution, provided that the debt instrument is marked with the following:
.It indicates that the creditor has received the order
Chapter Seven
Bankruptcy of Small Companies and Bankruptcies
Article (187)
.The provisions stipulated in this law, and in particular the articles contained in this chapter, apply to corporate bankruptcy
Article (188)
With the exception of joint venture companies, any commercial company may be declared bankrupt if its financial business is
disturbed and it stops paying its debts. The company may be declared bankrupt, even if it is in the process of liquidation. After the
end of liquidation, every creditor who has not repaid his debt may request the company to be declared bankrupt within (2) Two
.years following its removal from the register
.The actual company may also be declared bankrupt
Article (189)
The company manager or the liquidator may not request the company to be declared bankrupt except after obtaining the approval
of the majority of partners in joint-liability companies and limited partnerships, the extraordinary general assembly in joint-stock
.companies, the association of partners in limited liability companies, and the owner of a one-person company
The request to declare the bankruptcy of joint liability companies or limited partnerships must include the names of the current
joint partners who left the company after it stopped paying, along with a statement of the domicile of each joint partner, his
.nationality, and the date of his departure from the company
Article (190)
The director of the company or one of its creditors may request the declaration of its bankruptcy, even if he is a partner in it. As for
.partners who are not creditors, they may not, in their individual capacity, request the declaration of the company’s bankruptcy
.If the creditor requests that the company be declared bankrupt, all joint partners must litigate
Article (191)
The court - on its own initiative, or based on the company’s request - may postpone consideration of declaring its bankruptcy for a
period not exceeding three (3) months if its financial position is likely to be strengthened, or if the public interest so requires. The
.court may order taking whatever precautionary measures it deems appropriate. On the company's assets
Article (192)
If the company is declared bankrupt, all joint partners in it must be declared bankrupt, and the bankruptcy declaration includes the
joint partner who left the company after it stopped paying if he requested the company to be declared bankrupt before the expiry
.of one year from the date on which the partner’s departure was recorded in the register
The court shall issue a single ruling declaring the bankruptcy of the company and the general partners, even if it does not have
.jurisdiction to declare the bankruptcy of these partners
For the bankruptcy of the company and the bankruptcy of joint partners, the court appoints one judge, one manager, or more.
However, each bankruptcy is independent from other bankruptcies in terms of its assets, liabilities, management, realization of its
.debts, and how it is terminated
The assets of the company's bankruptcy consist of its assets, including the partners' shares, and its liabilities include only the rights
of its creditors. As for the bankruptcy of a general partner, its assets consist of his own funds, and its liabilities include the rights of
.his creditors and the company's creditors
Article (193)
The court - on its own initiative or upon the request of the bankruptcy judge - may rule to waive the rights stipulated in Article (108)
of this law from members of the company’s board of directors or managers who committed serious errors that led to disruption of
.the company’s business and its cessation of payment
If the company is requested to declare bankruptcy, the court may order the bankruptcy of every person who, under the guise of this
company, carried out commercial activities on his own account and disposed of the company’s funds as if they were his own funds,
.without prejudice to any penalty stipulated in any other law
If it becomes clear that the company's assets are not sufficient to pay at least twenty percent (20%) of its debts, the court may -
upon the request of the bankruptcy administrator or the bankruptcy judge - order obligating all or some of the members of the
board of directors or managers, jointly or not, to pay the debts. All or part of the company unless they prove that they exercised
.due diligence in managing the company's affairs
Article (194)
The legal representative of the company that has been declared bankrupt shall act in its place in every matter in which the law
requires the bankrupt debtor to take the opinion or his presence. He must appear before the bankruptcy judge or its manager
.whenever he is requested to do so, and provide the requested information or clarifications
Article (195)
The bankruptcy administrator may, after seeking permission from the bankruptcy judge, demand that the partners or shareholders
pay the remainder of their shares or the remainder of the value of their shares in the capital, even if the due date has not yet
.arrived. The bankruptcy judge may order that this claim be limited to the amount necessary to satisfy the company’s debts
Article (196)
The loan bonds issued by the company are not subject to debt verification procedures, and these bonds are accepted at their
.nominal value after deducting what the company has paid from them
Article (197)
The company's bankruptcy may not end with reconciliation if it is in the process of liquidation, and if the company that is not in the
process of liquidation requests reconciliation, its proposals must be drawn up with the approval of the majority of partners in joint-
liability companies and limited partnerships, and with the approval of the extraordinary general assembly in joint-stock companies
and the association of partners in limited liability companies and the owner. A one-person company, and the legal representative of
.the company is responsible for submitting reconciliation proposals in the presence of the group of creditors
Article (198)
If the company's bankruptcy ends with a union of creditors, and a reconciliation is concluded with one or more of the joint partners,
the company's funds may not be allocated to fulfill the conditions of this reconciliation or to ensure its implementation, and the
.partner who obtained the reconciliation is discharged from solidarity
If reconciliation is concluded with the company, and the bankruptcies of the joint partners in the union are ended, the company will
.continue to exist unless the subject of the reconciliation is the abandonment of all its funds
If the bankruptcy of the company and the bankruptcies of the partners end in reconciliation, each reconciliation shall be considered
.independent from the others, and its conditions shall only apply to the creditors of the bankruptcy related to it
Article (199)
The company shall not be dissolved upon completion of its bankruptcy by the creditors' union. However, this company may be
dissolved if it becomes clear that what remains of its assets after liquidation are not sufficient to continue its business in a
.meaningful manner
Article (200)
If (6) six months have passed from the date of the establishment of the creditors’ union without liquidation being completed, the
trustee of the creditors’ union must submit to the bankruptcy judge a report on the liquidation status and the reasons for the delay
in completing it. The judge shall send this report to the creditors and invite them to a meeting to discuss it, and the same procedure
.shall be taken. Whenever (6) six months have passed without the trustee of the creditors’ union completing the liquidation work
Article (201)
After completing the liquidation work, the trustee of the creditors’ union shall submit a final account to the bankruptcy judge. The
judge shall send this account to the creditors and invite them to a meeting to discuss it. He shall notify the bankrupt debtor of this
.meeting and may attend it
The creditor union is dissolved, and the bankruptcy is considered terminated by law after the account is approved by the bankruptcy
.judge
The trustee of the creditors' union shall be responsible for the books, documents and papers delivered to him for a period of one
.year from the date of the end of the bankruptcy
Article (202)
If, after taking stock of the bankrupt debtor’s funds in small bankruptcies, it becomes clear that their value does not exceed
(100,000) one hundred thousand Omani Riyals, the bankruptcy judge may, on his own initiative, or upon a request from the
bankruptcy manager or one of the creditors, order the bankruptcy procedures to proceed in accordance with the following
: :provisions
A - Those dates stipulated in the first paragraph of Article (103), Article (105), the second paragraph of Article (161), the second
.paragraph of Article (162), Article (163), and the third paragraph of Article (164) of this law shall be reduced by half
B - All decisions of the bankruptcy judge shall not be subject to appeal, unless the law stipulates otherwise, or the decision exceeds
.his jurisdiction
.C - A bankruptcy controller is not appointed
.D - The bankruptcy administrator shall not be changed when the creditors’ union is established
.E - Only one distribution will be made to the creditors after completing the sale of the bankruptcy funds
:Chapter Three
.Conditions and procedures for selling and distributing bankruptcy assets
Chapter One
.Sale :
Section One
General Provisions :
Article (203)
The provisions of this section shall apply with regard to the procedures for selling bankruptcy assets, and unless a special provision
.is provided therein, the provisions of the Civil and Commercial Procedures Law shall apply
Article (204)
It is not permissible to sell bankruptcy assets during the period of preliminary procedures during which seals are placed, publication,
seals are removed, and inventory is carried out. However, the bankruptcy judge may - upon the request of the bankruptcy
administrator - authorize the sale of items that are perishable or have an urgent decrease in value, or whose maintenance requires
heavy expenses. It is also permissible to authorize the sale of the bankruptcy assets if the sale is necessary to obtain money to
spend on its affairs, or if the sale achieves a definite benefit for the creditors or the bankrupt debtor. In the latter case, the sale is
not permissible except after notifying the bankrupt debtor of the sale and hearing his statements, or informing him of the sale, and
.the sale is completed. In the manner determined by the bankruptcy judge
Article (205)
It is permissible to appeal the decision issued by the bankruptcy judge to sell the bankruptcy assets during the preliminary
.proceedings period within (10) ten days from the date of issuance of the decision to start taking the sale proceedings
Article (206)
Mortgaged creditors must take procedures to sell the movables or real estates on which they are mortgaged, in accordance with
the method specified in the security contracts, and to fulfill their rights secured by these movables or real estates, within a
maximum of one year from the date of declaring bankruptcy, provided that this sale takes place in the face of the bankruptcy
administrator, otherwise the administrator may The bankruptcy or the trustee of the creditors’ union - as the case may be, and no
one else after notifying the creditor - has the right to enforce enforcement against it in accordance with the provisions contained in
.this law
In the event that movables or mortgaged real estate are sold at the request of the mortgaged creditor for a price that exceeds the
debt, the bankruptcy administrator or the trustee of the creditors’ union must collect the excess amount for the account of the
.group of creditors and deposit it in the bankruptcy account
The trustee of the creditors’ union may sell the mortgaged movables or real estate after obtaining the approval of the mortgaged
.creditor to sell before the expiry of the period stipulated in the first paragraph of this article
Article (207)
The bankruptcy assets shall be sold by decision of the bankruptcy judge by public auction based on the list of conditions of sale
submitted by the bankruptcy administrator or the creditors’ union secretary to the court secretariat in accordance with Article
.(209) of this law, as the case may be
Article (208)
In the event of selling the bankruptcy assets of real estate, the bankruptcy administrator or the trustee of the creditors’ union - as
the case may be - shall announce the decision issued by the bankruptcy judge to take the sale procedures to the Land Registry
Secretariat for notation without fees within a period not exceeding five (5) days from the date of the announcement, as well as
.Notifying all creditors whose rights are restricted on the property and its actual owner
:Section Two
Conditions of Sale
Article (209)
The bankruptcy administrator or the trustee of the creditors’ union, as the case may be, shall prepare a list of conditions for the sale
by public auction, and shall deposit it with the court secretariat after its approval by the bankruptcy judge within (30) thirty days
:from the date of issuance of the bankruptcy judge’s decision to initiate the sale procedures, provided that it includes the following
A - Identifying the thing sold, specifying the data that will be useful in describing its description, and specifying its area, location, and
.boundaries in the case of selling the property
.B - The date of the bankruptcy judge’s decision to initiate sale procedures
.C - Date, time and place of the sale procedures
.D - Conditions of sale and the basic price for starting the public auction
.E - Dividing the sale into deals, if necessary, mentioning the basic price for each deal
F - The deposit amount for participation in the public auction, which should not be less than (5%) five percent of the basic price of
.the sale
.G - The estimated costs of the sale procedures, and the expenses and fees incurred by the auction bidder
Article (210)
The bankruptcy judge shall appoint an expert from among the experts whose names are listed on the roster, and if necessary, he
:may appoint another expert to evaluate the property according to the following criteria
.A - The value of the property when purchased
.B - Amendments to the property
.C - The impact of inflation rates on real estate
.D - Market value at the time of evaluation
.E - The rental value of the property at the time of evaluation
.The bankruptcy judge may follow the same procedures in selling movables in the cases he deems appropriate
:Section Three
Sales procedures
Article (211)
The list stipulated in Article (209) of this law is approved by the bankruptcy judge, and he has the right to reduce the insurance
.amount stipulated in Clause (F) of the same article in the circumstances that he determines
The bankruptcy administrator or the trustee of the creditors’ union - as the case may be - shall publish the filing of the list of
conditions of sale with the court secretariat, in one of the widely circulated daily newspapers, or by any other means determined by
the bankruptcy judge. In the case of selling the bankrupt debtor’s real estate, this shall be done - in addition to the previous
.procedures. – Paste the sale announcement on the property
Article (212)
The bankruptcy administrator or the trustee of the creditors’ union - as the case may be - in the presence of the bankruptcy judge
.shall conduct the public auction on the day specified for the sale
The public auction begins with the call for the basic price, and ends with the bankruptcy judge approving the sale to the one who
.submitted the highest bid. The bid that is bid on within five (5) minutes is considered to have ended the public auction
Article (213)
If the submitted offer is less than the basic price or if none of the creditors or bidders come forward for the public auction, the
bankruptcy judge may postpone the public auction to another day within the next sixty (60) days, and he may reduce one tenth of
the basic price time after time, whenever the situation requires. Not more than twice, after which the bankruptcy judge stops the
.sale procedures until the sold item is marketed in the manner he determines, and the matter is presented to the group of creditors
The bankruptcy administrator or the creditors’ union secretary - as the case may be - must announce the postponed session of the
.public auction according to the procedures stipulated in Article (208) of this law
Article (214)
The person whose bid is approved by the bankruptcy judge must deposit, once the public auction session is held, the full price that
.was approved and the expenses and fees included in the list stipulated in Article (209) of this law
The bankruptcy judge may give him a period to complete payment after deducting the insurance amount, not to exceed fifteen (15)
days from the date of the public auction session. If the auction bidder does not deposit the full price within the specified period, his
right to recover the insurance amount will be forfeited, and the public auction procedures will be repeated according to the
.previous conditions. According to the latest specified price
Article (215)
If the bidder who wins the auction is a creditor, and the amount of his debt and his salary are equivalent to the remainder of the
.price, the judge will order that value to be subtracted from the amount of his accepted debt when making distributions
Article (216)
The bankruptcy judge shall issue a decision to hand over the sold movables to the auction bidder, after paying the full price and
.paying the expenses and fees he owes
The bankruptcy judge shall issue a decision to award the sale of real estate based on the procedures taken, and after payment of the
full price, provided that the decision includes a list of the terms of the sale and the procedures followed on the day of the sale. The
decision must include the order to hand over the property to the person to whom it was decided to award the sale, after Submit
.proof of payment of expenses and fees
Article (217)
The decision to award the sale may not be appealed except for a defect in the procedures of the public auction, or in the form of
the decision. The appeal shall be submitted to the competent court according to the usual procedures within (15) fifteen days from
.the date of issuance of the decision
Article (218)
The person upon whom the bankruptcy judge approved the award of the sale has the right to register the decision with the Land
Registry Secretariat unless it is appealed, provided that he bears the registration expenses. This registration results in purging the
.property of liens and security and possession mortgages resulting from it
The registered decision shall be a document confirming the transfer of ownership of the property to the person who signed the
.sale
Article (219)
The bankruptcy administrator or the trustee of the creditors’ union - as the case may be - shall bear the expenses resulting from
repeating the public auction procedures if this was due to his error, or to his violation of the provisions of the articles contained in
.this section, and the bankruptcy judge’s decision issued in this regard may not be appealed
:Chapter Two
Distributions
Article (220)
The bankruptcy judge orders that distributions be made among the creditors, and determines the amount to be distributed, and the
.creditors’ union secretary must notify the creditors of this
Article (221)
The trustee of the creditors’ union may not fulfill the creditor’s share in the distributions unless he presents the debt instrument
indicating its verification and acceptance, and the amounts paid are marked on the debt instrument. If the creditor is unable to
.present the debt instrument, the bankruptcy judge may authorize the payment of his debt after verifying its acceptance
.In all cases, the creditor must give a receipt on the distribution list
Article (222)
If the price of real estate or movable property is distributed, the mortgaged or privileged creditors - who have not received all or
part of their rights from the price of real estate and movable property charged with insurance - may participate in dividing the
remainder with the ordinary creditors in distributing the funds to which the right of the group of creditors relates, provided that
Their debts have been investigated in accordance with the provisions of this law, and if it becomes clear upon final settlement that
what one of them obtained exceeds the amount of his debt, the excess portion must be deducted and returned to the group of
.creditors
Article (223)
Creditors who do not submit their requests within the prescribed dates shall not participate in the current distributions, but they
may object until the distributions are completed, and they shall bear the expenses of the opposition. The opposition shall not entail
.halting the implementation of the distributions ordered by the bankruptcy judge
However, the aforementioned creditors may participate in the new distributions in the amounts estimated by the court temporarily,
and their share shall be reserved for them until the ruling on the opposition. If their debts are proven after that, they may not claim
a share in the distributions ordered by the bankruptcy judge, but rather they may take from The remaining amounts without
.distributing the shares of their debts that would have been theirs if they had participated in the previous distributions
Chapter Four
.Final Provisions, Rehabilitation, and Penalties :
Chapter One
Final Provisions :
Article (224)
The filing of a criminal lawsuit in bankruptcy - whether through fraud (fraud) or negligence - does not result in any amendment to
.the bankruptcy procedures, unless the court orders otherwise
Article (225)
In the event that a criminal lawsuit is filed against the bankrupt debtor, the bankruptcy administrator must submit to the public
prosecution or the court all the documents, papers, information, or clarifications it requests related to the bankruptcy. The
documents and documents mentioned during the investigation or trial remain with the public prosecution or the court, and are
returned after the end of the investigation. The investigation or trial shall be directed to the bankruptcy administrator or to the
.bankrupt debtor or his heirs, as the case may be
Article (226)
If the crime is related to an agreement concluded by the bankrupt debtor or any person with one of the creditors to grant this
creditor special benefits in exchange for voting on the settlement, the court may rule on its own initiative to invalidate this
.agreement and oblige the creditor to return what he seized under it, even if the crime was ruled acquittal
.In addition to the above, the court may, upon the request of the concerned parties, order compensation when necessary
:Chapter Two
Rehabilitation of the Bankrupt Debtor
Article (227)
A bankrupt debtor who has been sentenced for one of the crimes of fraudulent bankruptcy or bankruptcy by negligence may not be
.restored except in accordance with the provisions of the Code of Criminal Procedure
In all cases, in order to restore the status of the bankrupt debtor, he must have fulfilled everything required of him, including the
.original debts, their attachments, and expenses
Article (228)
By law, all rights forfeited by the bankrupt debtor shall be restored after the expiration of three (3) years from the date of the end
.of the bankruptcy
If the bankrupt debtor pays all his debts prior to declaring his bankruptcy, including principal, attachments, and expenses, all his
rights will return to him, and his status will be restored to him, even if the period stipulated in the previous paragraph has not
.passed
Article (229)
If the bankrupt debtor is a joint partner in a company that has been declared bankrupt, his status shall not be restored to him
except after the payment of all the company’s debts, including principal, accessories, expenses, and returns, for a period not
exceeding (3) three years, even if the aforementioned partner obtains a settlement of his own from his creditors, and if If one of the
creditors refuses to collect his debt, or is absent, or whose domicile cannot be known, the debt may be deposited in the court
.treasury, and the deposit certificate takes the place of clearance
Article (230)
A ruling may be issued to restore rehabilitation to the bankrupt debtor, even if the period stipulated in Article (228) of this law has
:not expired, in the following two cases
A - If the bankrupt debtor obtains a settlement from his creditors and fulfills its conditions. This ruling applies to the general
partner in a company that has been declared bankrupt if this partner obtains a settlement of his own and implements its
.conditions
B - If the bankrupt debtor proves that the creditors have absolved him of all debts, or that they have unanimously agreed to
.rehabilitate him
Article (231)
The bankrupt debtor shall be rehabilitated after his death upon the request of one of the heirs, in accordance with the provisions
.stipulated in the previous articles
Article (232)
The rehabilitation request, accompanied by supporting documents, shall be submitted to the court secretariat, and a copy of the
.request shall be sent immediately to the public prosecution and to the registry
The court shall notify the creditors whose debts were accepted in bankruptcy with a request for rehabilitation and warn them to
submit their objections, if necessary. The summary of the request shall be published in the Official Gazette at the expense of the
bankrupt debtor. This summary must include the name of the debtor merchant, the date of issuance of the bankruptcy declaration
.ruling, and the manner in which the bankruptcy ends
Article (233)
The Public Prosecution shall submit to the court secretariat a copy of the rehabilitation application within (30) thirty days from the
date of its receipt. It shall also submit a report that includes data on the type of bankruptcy, the rulings issued against the bankrupt
debtor in bankruptcy crimes, the trials or ongoing investigations with him in this regard, and the opinion of the prosecution. The
.general decision is to accept or reject the request
Article (234)
Every creditor who has not fulfilled his right may submit an objection to the rehabilitation request within fifteen (15) days from the
date of publishing the summary of the request in the Official Gazette. The objection shall be made in a written report submitted to
.the secretariat of the court, accompanied by the documents supporting it
Article (235)
After the expiration of the period stipulated in Article (234) of this law, the court secretariat will notify the creditors who have
submitted objections to the rehabilitation request of the date of the session specified for considering the request, and the
.notification shall be in the manner specified by the court
Article (236)
The court shall decide on the rehabilitation application with a final ruling. If the court rules to reject the application, it may not be
.submitted again until six (6) months have passed from the date of issuance of the ruling
Article (237)
If, before deciding on the rehabilitation request, investigations are conducted with the bankrupt debtor regarding a bankruptcy
.crime or a criminal case is filed against him in that regard, the public prosecution must immediately notify the court
The court must suspend its decision on the rehabilitation request until the end of the investigations or the issuance of the final
.ruling in the criminal case
Article (238)
In the event that the bankrupt debtor is convicted of one of the bankruptcy crimes after the issuance of the rehabilitation ruling,
.this ruling shall be considered as if it did not exist
:Chapter Three
Penalties
Article (239)
.With the exception of the crimes stipulated in this law, the provisions stipulated in the Penal Code apply to bankruptcy crimes
Article (240)
Without prejudice to any more severe penalty stipulated in any other law, the debtor merchant shall be punished with imprisonment
for a period of not less than (6) six months and not more than (3) three years, and a fine of not less than (1,000) one thousand
:Omani Riyals and not more than (5000) five thousand Omani Riyals, or one of these two penalties in the following cases
A - If he concealed, in bad faith, all or some of his funds, or exaggerated their estimate, with the intention of reaching restructuring
.or protective reconciliation
.B - If he unlawfully engages a creditor in restructuring or protective settlement procedures, or enables him to do so
.C - If he neglects, in bad faith, to mention a creditor in the list of creditors
Article (241)
Without prejudice to any more severe penalty stipulated in any other law, the creditor shall be punished with imprisonment for a
period of no less than (3) three months and not more than (2) two years, and a fine of not less than (500) five hundred Omani Riyals
and not more than (2000). ) Two thousand Omani Riyals if he participates in bad faith in the reconciliation deliberations and voting
on it without having the right to do so, or the debtor merchant or any other person grants him special benefits in exchange for his
.vote for the reconciliation
The conciliation trustee shall also be punished with the same penalty if he submits or acknowledges in bad faith incorrect
.information about the condition of the debtor merchant
Article (242)
Without prejudice to any more severe penalty stipulated in any other law, the penalty shall be imprisonment for a period of no less
than (3) three months and not more than one year, and a fine of no less than (500) five hundred Omani Riyals and not more than
(2000) two thousand Omani Riyals. Or one of these two penalties: every controller or supervisor who intentionally gave incorrect
data about the debtor merchant’s financial condition, or corroborated this data, or intentionally harmed the bankruptcy or one of
.the creditors
Article (243)
Without prejudice to any more severe penalty stipulated in any other law, he shall be punished by imprisonment for a period of no
less than (3) three years and not exceeding (5) five years, and a fine of no less than (2,000) two thousand Omani riyals and not more
than (3,000). ) Three thousand Omani Riyals, for each expert appointed by the court in accordance with the provisions of this law if
he intentionally provides incorrect information related to the procedures stipulated in this law, or colludes with the bankrupt debtor,
.or with any of the creditors
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Royal Decree No. 53 - 2019 Issuing The Bankruptcy Law

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Royal Decree No. 53 - 2019 Issuing The Bankruptcy Law

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10/18/23, 5:36 PM Royal Decree No. 53/2019 issuing the Bankruptcy Law – Qanoon.

Royal Decree No. 53/2019 promulgating the bankruptcy law

We Qaboos bin Said, Sultan of Oman

We were drawn to what was coming

.The provisions of the attached Bankruptcy Law shall apply

Issued on: Shawwal 27, 1440 AH

,Qaboos bin Said

The introductory section

:C - The competent department

:T - Creditors Union Secretary

.A - Documents supporting the data mentioned therein

.J - Evidence of payment of the prescribed application fee

The second section

:The assistant is responsible for the following

.B - Providing advice and technical support to the debtor merchant

.C - Establishing a mechanism for implementing the restructuring plan procedures

.A - If it is not possible to agree on a restructuring plan with the creditors

.A - Documents supporting the data mentioned therein

.J - Evidence of payment of the prescribed application fee

:The second section

.C - If he quits trading, closes his shop, or flees

.A - Assigning a judge to the court to supervise the protective settlement procedures

.A - Originals of commercial books

.B - Funds owned by someone other than the bankrupt debtor

:The second section

The second section

.C - Money necessary to spend on urgent bankruptcy affairs

.E - Things necessary to operate the store if it is decided to continue operating it

.B - Payment of all debts accepted in bankruptcy

.C - Reconciliation with the bankrupt debtor

:Creditors are considered to be in a state of union by law in the following cases

.A - If the debtor merchant does not request reconciliation

.B - If the debtor merchant requests reconciliation, and the creditors reject it

.C - If the debtor merchant obtains a settlement, then it is invalidated or annulled

.C - A bankruptcy controller is not appointed

.B - The date of the bankruptcy judge’s decision to initiate sale procedures

.C - Date, time and place of the sale procedures

.A - The value of the property when purchased

.B - Amendments to the property

.C - The impact of inflation rates on real estate

.D - Market value at the time of evaluation

.E - The rental value of the property at the time of evaluation

.B - If he unlawfully engages a creditor in restructuring or protective settlement procedures, or enables him to do so

.C - If he neglects, in bad faith, to mention a creditor in the list of creditors

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