Court approves proposal under the Insolvency Act 2006 despite Commissioner’s objection
This case involved a proposal submitted on behalf of Mr Michael Robert Garnham (Mr Garnham) under Subpart 2 of Part 5 of the Act during bankruptcy proceedings commenced by the Commissioner of Inland Revenue (the Commissioner). If accepted by a majority of Mr Garnham’s creditors, and approved by the High Court, the proposal would bind the Commissioner and Mr Garnham would avoid bankruptcy.
The Commissioner voted against the proposal during the creditors meeting and opposed the provisional trustee’s application for the High Court to approve the proposal.
Despite the Commissioner’s objection, the Court approved the proposal.
Insolvency Act 2006 (the Act), ss 5, 29, 231, 274 and 325 through to 339 (Subpart 2 of Part 5)
Tax Administration Act 1994 (the TAA), ss 6, 6A, 176, 177, 177A, 177B and 177C
Companies Act 1993, ss 227 through to 234 (Part 14), 236 and 302