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Section 272 of Insolvency Act CAP 53: Court may annul bankruptcy order in certain circumstance

    

(1) The Official Receiver or any other person claiming to have a legitimate interest in the matter may make an application to the Court for an order under subsection (2).
(2) On the hearing of an application made under subsection (1), the Court may annul a bankruptcy order made in respect of a bankrupt if—
(a) on reconsideration it finds that the bankrupt should not have been adjudged bankrupt;
(b) it is satisfied that the bankrupt's debts have been fully paid or satisfied and that the bankruptcy trustee's fees and costs incurred in the bankruptcy have been paid;
(c) it considers that the liability of the bankrupt to pay the bankrupt's debts should be revived because there has been a substantial change in the bankrupt's financial circumstances since the bankruptcy commenced; or
(d) it has approved a deed of composition under Division 24 of Part III or a voluntary arrangement under Division 1 of Part IV.
(3) If an application is made by an applicant other than the Official Receiver on one of the grounds specified in subsection (2)(a) to (c)—
(a) the applicant shall serve a copy of the application on the Official Receiver in the manner and within the period directed by the Court; and
(b) on being served with a copy of the application, the Official Receiver is entitled to appear at the hearing of the application as a party to the proceeding.
(4) A bankruptcy order is annulled—
(a) in the case of an application made on the ground specified in subsection (2)(a), from the time when it was made; or
(b) in the case of an application made on one of the grounds specified in subsection (2)(b) to (d), from the time when the Court made the order of annulment.
(5) If an application for annulment is made on the ground that the bankrupt should not have been adjudged bankrupt because of a defect in form or procedure, the Court may, in addition to annulling the bankruptcy order, exercise its powers under section 696 to correct the defect and order that the bankruptcy application be reheard as if no bankruptcy order had been made.
(6) If a bankruptcy order is annulled on one of the grounds specified in subsection (2)(a) to (c)—
(a) the Court may, on the Official Receiver's application, fix an amount as reasonable remuneration for the Official Receiver's services and order that it be paid, in addition to any costs that may be awarded;
(b) the Official Receiver shall pay that amount into the Consolidated Fund or into some other public account prescribed by the insolvency regulations for the purposes of this section; and (c) the Official Receiver is not entitled to remuneration under section 710 for those services.

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Disclaimer: This document is not to be taken as legal advise.

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