Can An Appeal Court's Decision Be Reviewed By The Same Level Of Court Under Insolvency Legislation?

Author:Mr Neil Smyth
Profession:Taylor Wessing
 
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Summary

The insolvency legislation contains an unusual provision pursuant to section 375(1) of the Insolvency Act 1986 enabling the court to review its own decision. The issue in this case was whether the High Court could review its own decision where that decision was an appeal of a bankruptcy order made by a District Judge in the County Court.

The Facts

The debtor appealed the bankruptcy order to the High Court on the grounds that he had made a reasonable offer to settle the debt. The debtor and petitioning creditor reached an agreement, which was transposed into an order made by the High Court discharging the bankruptcy order and disposing of the appeal (the Order).

In the meantime, a trustee in bankruptcy had been appointed. The trustee applied to the High Court for a review for the Order contending it was prejudicial to other creditors and should be rescinded.

The High Court refused the application. It held that it could not rescind an order made in that court on an appeal. The Court also proceeded to dismiss the application on its merits, and held that the trustee had no standing to rescind the Order as he was not a party to the application.

The Appeal Decision

The...

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