A Legal Analysis to Article 251 of the Commerce Act: A Bedrock in Adhering the Priorities and Dividing the Joint and several Responsibilities Among the Sureties

Article 251 of the Commerce Act (CA) although mentioned among the articles related to the commercial documents but seeks to determine the manner of reference among the liquidators of the bankrupt sureties. This article although apparently has disrupted a normal practice in a way that provides liquidators of none of the bankrupt sureties are not allowed to refer to the liquidators of the other bankrupt sureties, but instead provides that remnants of what has been allocated to the document holder if in excess to his claim would be reimbursed respectively to the liquidators of the bankrupt sureties who have the right of reference to others. This research shows that the legislator in promulgating this article has considered various principles and has adopted a clever and exact solution. Thus as far as the priorities and division of responsibility among the bankrupt sureties is concerned, the article 251 CA plays as a bedrock.