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Section 312 of Insolvency Act CAP 53: Effect of approval of debtor's proposal by meeting of creditors or by the Court

    

(1) A debtor's proposal (with or without modifications) takes effect as a voluntary arrangement by the debtor on the day after the date on which it is approved by the Court by order made under section 311(7)(a) or on such later date as may be specified in the order.
(2) On taking effect as a voluntary arrangement, the approved proposal binds every person (including a secured creditor and a preferential creditor) who—
(a) was entitled to vote at the meeting (whether present or represented at the meeting or not); or
(b) would have been so entitled if the person had received notice of the meeting, as if the person were a party to the arrangement.
(3) On the approved proposal taking effect as a voluntary arrangement, the provisional supervisor becomes the supervisor of the arrangement unless that supervisor has been replaced in accordance with section 310(5).
(4) If—
(a) when the voluntary arrangement ends, any amount payable under the arrangement to a person bound because of subsection (2)(b)(ii) has not been paid; and
(b) that arrangement did not come to an end prematurely, the debtor at that time becomes liable to pay to that person the amount payable under that arrangement.
(5) An interim order having effect in relation to the debtor immediately before the expiry of thirty days from and including the date on which the report with respect to the creditors' meeting was made to the Court in accordance with section 310(10) ceases to have effect at the end of that period.
(6) Subsection (5) applies except to such extent as the Court may direct for the purposes of any application made under section 314 (right to challenge decision taken at creditors' meeting).
(7) If proceedings on a bankruptcy application have been stayed by an interim order that has ceased to have effect, the application is, unless the Court otherwise orders, taken to have been dismissed.

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