Appeals from refusals to rescind bankruptcy orders. The bankrupts had, after lodging their appeals, persuaded the petitioning creditor and several other creditors to support the application. The first bankrupt was acting as agent in negotiations which if successful would generate a commission which would clear the indebtedness.
Held: The court’s rejection of the request had been on an incorrect basis, and the CA must exercise it themselves. The circumstances of the present case were exceptional and they justified the rescission of the bankruptcy order.
‘The statutory discretion is in terms unlimited. The effect of a rule of law to the effect alleged would be to distort the nature of the enquiry upon which the Court ought to embark. That enquiry is whether the circumstances justify the rescission of the bankruptcy order, not whether they are sufficiently close to an informal scheme of arrangement.’
Citations:
[1995] EWCA Civ 59, [1996] 1 WLR 242
Links:
Statutes:
Jurisdiction:
England and Wales
Citing:
Cited – In Re Izod CA 1897
The debtor had presented his own petition and a receiving order was made upon it. An arrangement was later made under which the debtor’s father paid the creditors 10s. in the pound and the creditors released their debts. The creditors withdrew their . .
Cited – In Re A Debtor No 12 of 1970 CA 1970
A bankruptcy petition was presented against the debtor and a receiving order was made upon it. He afterwards assured his creditors that he would pay them in full. The petitioning creditor was content with his assurance, but the other creditors were . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 20 December 2022; Ref: scu.471053