Cook and another v Revenue and Customs Commissioners and another

Bankruptcy – Annulment. In applying s 271(1) of the Insolvency Act 1986, the court had a discretion as to whether or not to make a bankruptcy order. Section 282(1)(a) of IA 1986 did not require the court to annul a bankruptcy order if satisfied that such an order ought not to have been made. The court had a discretion as to whether or not to do so. So held the Chancery Division in annulling a bankruptcy order made against M in circumstances where, at the hearing of the respondent Revenue's adjourned petition, the court had not been informed that the Revenue had not considered three of four tax returns M had submitted prior to that hearing, which could have resulted in a reduction of the relevant debt. The court held that the bankruptcy order ought not to have been made and that the discretion to annul it should be exercised in M's favour.

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