174.2 Validation orders

An application for the consent of the court to authorise a disposition made while a petition is pending (‘validation order’) should be made by way of application in the general form of application1 and supported by written evidence. Such applications are common in company insolvency and are usually made while a winding up petition is pending in order to facilitate the continuation of trading and/or the operation of the company bank account. They arise in bankruptcy if either:

  1. 174.2.1

        the debtor is a sole trader, to facilitate trading; or

  2. 174.2.2

        in any bankruptcy if it is desired to carry out a disposition of property, for example completing the sale of a house.

CPR PD—Insolvency Proceedings2 sets out in detail the evidence usually required and the

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