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Re Dutch Trustee in Bankruptcy

International Law Reports Cited in Precedent Map Related
Vincent
CourtCourt of Appeal of Cologne (Germany)
Docket NumberCase No. 76
Date09 m 1931
Germany, Court of Appeal of Cologne.
Case No. 76
In re Dutch Trustee in Bankruptcy.

Jurisdiction — Principle of Territoriality — Bankruptcy Proceedings Abroad.

The Facts.—A Dutch trustee in bankruptcy brought an action to recover assets belonging to the debtor and situate in Germany.

Held: that the action must be dismissed. “The Dutch trustee in bankruptcy is not entitled to bring the present action, for the bankruptcy proceedings were brought in Holland and the attachment consequent on them is of no effect in Germany. When examining the effect of bankruptcy proceedings abroad on the debtor's property in this country, it must be borne in mind that bankruptcy proceedings constitute a compulsory measure by the State. Thus every bankruptcy involves the exercise of the executive power of the State … Now, it is a rule of both constitutional and international law that a State can exercise its jurisdiction only within its territory. For this reason international bankruptcy law provides that the effect of bankruptcy shall be limited to the territory of the State where a receiving order is made (so-called principle of...

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