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The burden on supporting creditors where an IVA is challenged (Moorgate Industries UK Ltd v Pramod Mittal (in bankruptcy) and another)

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Published on: 22 December 2022

Published by a LexisNexis Restructuring & Insolvency expert

Table of contents

What are the practical implications of this case?
What was the background?
What did the court decide?
Case details

Article summary

Restructuring & Insolvency analysis: Where an individual voluntary arrangement (IVA) was challenged by a creditor under section 262 of the Insolvency Act 1986 (IA 1986) but the applicant did not join as respondents the creditors who supported the IVA, and those creditors did not file evidence to support their claims, it was open to the court to revoke the IVA on the basis that the creditors had failed to discharge the burden of proving their claims. The court also found that the debtor had ‘control’ over a company for the purposes of IA 1986, s 435(10) by virtue of his position as protector of a British Virgin Island (BVI) trust. Written by Stephen Ryan, barrister at Three Stone.

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