The Insolvency (Northern Ireland) Order 1989

Challenge of decisions N.I.

19.—(1) Subject to this Article, an application to the High Court may be made, by any of the persons specified in paragraph (2), on one or both of the following grounds, namely—

(a) that a voluntary arrangement[F1 which has effect under Article 17A] unfairly prejudices the interests of a creditor, member or contributory of the company;

(b )F2 that there has been some material irregularity at or in relation to either of the meetings.

(2) The persons who may apply under this Article are—

(a )F2 a person entitled, in accordance with the rules, to vote at either of the meetings;

[F3 (aa) a person who would have been entitled, in accordance with the rules, to vote at the creditors' meeting if he had had notice of it;]

F2 (b )F2 the nominee or any person who has replaced him under Article 15(4) or 17(2); and

(c )F2 if the company is being wound up orF4 an administration order is in force, the liquidator or administrator.

(3) An application under this Article shall not be made

[F3 (a)] F2 after the expiration of 28 days from the day on which each of the reports required by Article 17(6) has been made to the High Court[F3 or]

[F3 (b) in the case of a person who was not given notice of the creditors' meeting, after the end of the period of 28 days beginning with the day on which he became aware that the meeting had taken place,]

[F3 but (subject to that) an application made by a person within paragraph (2)(aa) on the ground that the voluntary arrangement prejudices his interests may be made after the arrangement has ceased to have effect, unless it came to an end prematurely.]

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(4 )F2  Where on such an application the High Court is satisfied as to either of the grounds mentioned in paragraph (1), it may do one or both of the following, namely—

(a) revoke or suspend[F1 any decision approving the voluntary arrangement which has effect under Article 17A] or, in a case falling within paragraph (1)(b), any[F1 decision taken by the meeting in question which has effect under that Article];

(b) give a direction to any person for the summoning of further meetings to consider any revised proposal the person who made the original proposal may make or, in a case falling within paragraph (1)(b), a further company or (as the case may be) creditors' meeting to reconsider the original proposal.

(5 )F2  Where at any time after giving a direction under paragraph (4)(b) for the summoning of meetings to consider a revised proposal the High Court is satisfied that the person who made the original proposal does not intend to submit a revised proposal, the Court shall revoke the direction and revoke or suspend any[F1 decision approving the voluntary arrangement which has effect under Article 17A].

(6) In a case where the High Court, on an application under this Article with respect to any meeting—

(a) gives a direction under paragraph (4)(b), or

(b) revokes or suspends an approval under paragraph (4)(a) or (5),

the Court may give such supplemental directions as it thinks fit and, in particular, directions with respect to things done[F1 under the voluntary arrangement since it took effect].

(7) Except in pursuance of the preceding provisions of this Article,[F1 a decision taken] at a meeting summoned under Article 16 is not invalidated by any irregularity at or in relation to the meeting.

F1 2002 NI 6

F2 mod. by SR 2004/307

F3 2002 NI 6

F4 prosp. subst. by 2005 NI 10