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Section 631 of Insolvency Act CAP 53: Certain persons may challenge decisions relating to approved voluntary arrangement by making application to the Court

    

(1) The following persons may make an application to the Court for an order under this section—
(a) a person who was entitled to vote at the meeting of the company or the meeting of its creditors;
(b) a person who would have been so entitled if the person had had notice of the relevant meeting;
(c) the provisional supervisor or, if the proposal has taken effect as a voluntary arrangement, the supervisor of the arrangement;
(d) if the company is in liquidation or is under administration, the liquidator or administrator.
(2) Such an application may be made on either or both of the following grounds—
(a) that a voluntary arrangement approved under section 629(2) detrimentally affects the interests of a creditor, member or contributory of the company;
(b) a material irregularity has occurred at or in relation to either of the meetings.
(3) An application under subsection (1) may not be made—
(a) after the end of the thirty days from and including the first day on which a report required by section 628(6) has been made to the Court; or
(b) in the case of a person who was not given notice of the creditors' meeting, after the end of the thirty days from and including the day on which the person became aware that the meeting had taken place.
(4) However, an application made by a person referred to in subsection (2)(b) on the ground that the voluntary arrangement detrimentally affects the person's interests may be made after the arrangement has ceased to have effect, unless it has ended prematurely.
(5) If, on hearing an application made under subsection (1), the Court is satisfied as to either of the grounds referred to in subsection (2), it may make orders doing one or both of the following—
(a) revoking or suspending—
(i) any decision approving the voluntary arrangement in accordance with section 629(2); or
(ii) in a case to which subsection (2)(b) applies, any decision taken by the meeting concerned;
(b) directing the supervisor to convene—
(i) further meetings to consider a revised proposal; or
(ii) if subsection (2)(b) applies, a further company meeting, or a further creditors' meeting, to reconsider the original proposal.
(6) If, at any time after making an order under subsection (5)(b) directing meetings to be convened to consider a revised proposal, the Court is satisfied that the maker of the original proposal does not intend to submit a revised proposal, the Court shall, by further order— (a) revoke the order; and
(b) any order revoking or suspending a decision approving the voluntary arrangement in accordance with section 629.
(7) If the Court makes an order under subsection (5) or (6), it may make such ancillary orders as it considers appropriate and, in particular, orders with respect to action taken under the voluntary arrangement since it took effect.
(8) Except as provided by this section, a decision taken at a meeting held in accordance with section 628 is not invalidated by any irregularity occurring at or in relation to the meeting.

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