C2C3C4C5 Part VIII Individual Voluntary Arrangements

Annotations:
Modifications etc. (not altering text)
C2

Pt. VIII (ss. 252-263) applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 5

C3

Pt. VIII (ss. 252-263) restricted (6.4.1996 for the purpose only of authorising the making of regulations) by 1995 c. 26, ss. 91(3), 180(1) (with s. 121(5)); S.I. 1996/778, art. 2(5)(a). Sch. Pt. V

C4

Pt. VIII (ss. 252–263) applied with modifications by S.I. 1986/2142, arts. 1(2), 11, 13(3), 15

C5

Second Group of Parts (Pts. 8-11) modified (31.12.1996) by 1991 c. 57, Sch. 10 (as substituted by 1995 c. 25, s. 120(1), Sch. 22 para. 183 (with ss. 7(6), 115, 117); S.I. 1996/2909, art. 3)

Second Group of Parts (Pts. 8-11) modified (11.11.1999 for specified purposes and 6.4.2002 otherwise) by 1999 c. 30, s. 12(1); S.I. 2002/153, art. 2(b)

Consideration and implementation of debtor’s proposal

C1260 Effect of approval.

1

This section has effect where F3pursuant to section 257 the debtor's creditors decide to approve the proposed voluntary arrangement (with or without modifications).

2

The approved arrangement—

a

takes effect as if made by the debtor F4at the time the creditors decided to approve the proposal, and

F1b

binds every person who in accordance with the rules—

i

was entitled to vote F5in the creditors' decision procedure by which the decision to approve the proposal was made, or

ii

would have been so entitled if he had had notice of it,

as if he were a party to the arrangement.

2A

If—

a

when the arrangement ceases to have effect any amount payable under the arrangement to a person bound by virtue of subsection (2)(b)(ii) has not been paid, and

b

the arrangement did not come to an end prematurely,

the debtor shall at that time become liable to pay to that person the amount payable under the arrangement.

F23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Any interim order in force in relation to the debtor immediately before the end of the period of 28 days beginning with the day on which the report with respect to the creditors’ F6decision was made to the court under section 259 ceases to have effect at the end of that period.

This subsection applies except to such extent as the court may direct for the purposes of any application under section 262 below.

5

Where proceedings on a bankruptcy petition have been stayed by an interim order which ceases to have effect under subsection (4), that petition is deemed, unless the court otherwise orders, to have been dismissed.