[(1) This section applies where—
(a) [pursuant to section 257 the debtor's creditors decide to approve] the proposed voluntary arrangement (with or without modifications), and
(b) the debtor is an undischarged bankrupt.
(2) Where this section applies the court shall annul the bankruptcy order on an application made—
(a) by the bankrupt, or
(b) where the bankrupt has not made an application within the prescribed period, by the official receiver.
(3) An application under subsection (2) may not be made—
(a) during the period specified in section 262(3)(a) during which the [creditors' decision] can be challenged by application under section 262,
(b) while an application under that section is pending, or
(c) while an appeal in respect of an application under that section is pending or may be brought.
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