INS10271 - Appeals

Introduction

Background

Grounds for appeal

Time limit

Challenge by appeal is not the only way forward

Background

The decision of creditors to approve a VA may be challenged by application to the Court (an appeal).

An IVA may be challenged under Section 262 IA 1986 ( INS10712) by

• the debtor
• any creditor entitled to vote at the meeting at which the arrangement was approved
• the nominee or their replacement
• the trustee or Official Receiver if the debtor is an undischarged bankrupt.

A CVA may be challenged under Section 38 IA 1986 ( INS10557) by

• any person entitled to vote at the meeting at which the arrangement was approved
• the nominee or their replacement
• an administrator or liquidator who has been appointed.

Grounds for appeal

The two grounds for an appeal are

• material irregularity either at or in relation to the meeting, including that contained in the proposal or supporting financial information
• unfair prejudice of an individual creditor.

Time Limit

The application must be made within 28 days of the date the nominee’s report was filed at court or in the case of creditors who did not receive notice of the proposal 28 days of the date the arrangement was drawn to their attention.

Challenge by appeal is not the only way forward

When the grounds of appeal against the approval of an IVA are material irregularity an alternative of Bankruptcy action based upon the failure of the arrangement within the meaning of S 276 is available

• Follow the guidance at INS10273