It is particularly noteworthy that the buyer has acted in bona fide; the buyer could legitimately rely on the trustees of the bankrupt's estate being competent to make a settlement on the disputed property in a manner that would terminate the dispute at the same time.

3) On the right of the administration of the bankrupt's estate to make the above agreement.

On the basis of the decision made by the meeting of the creditors on September 10, 1997, the administration of the bankrupt's estate was authorised to make the said agreement for USD 70,000 or, alternatively, for an inferior price. The buyer, Mr. Karl Lindroos, was not willing to pay more than USD 10,000, and in line with its competence, the administration of the bankrupt's estate decided to accept such inferior price. Before the final deal was made, the majority of the creditors of the bankrupt's estate gave their consent as regarded the said price of USD 10,000.

4) The exception contained in Finnish bankruptcy legislation related to a bankrupt's right to proceed a legal case initiated prior to the bankruptcy.

According to the general rule, all rights of the debtor (bankrupt) are protected by and the debtor is represented by the administration of the bankrupt's estate. Section 71, subsection 5 of the Bankruptcy Act regulates the situation in which the debtor may regain his legitimacy as the proper party, i.e. to carry on a case he has initiated. According to the general rule, the majority of the creditors of the bankrupt's estate may make a settlement on the disputed property, if the debtor agrees to this. Should the debtor not agree to adopt the offered settlement, he can continue to carry on the dispute if he provides the bankrupt's estate with a collateral security on what has been offered as a settlement. Should he fail to do so, the creditors must examine the case.

Lauri Antero Holmaranta has not provided any collateral security although the meeting of the creditors did offer him such possibility. He was also aware of the fact that the settlement can be made for a sum inferior to USD 70,000. Neither did Mr. Holmaranta provide any security at a later stage, although, according to the law, providing such security at the meeting of the creditors in an absolute condition for obtaining the right of action in the case (See Heikki O Leisvuori: Affidavit of November 20 1997 and the Minutes of the meeting of the creditors of January 15, 1998).