Annulment of bankruptcy order refused

In a recent appeal, the court upheld the decision of a district judge refusing to annul a bankruptcy order under section 282(1)(a) of the Insolvency Act 1986.

Initially, the district judge had accepted that the bankruptcy order ought not to have been made, because the debt was in fact wholly disputed. The debtor argued that this meant that an annulment should have been refused only in exceptional circumstances.

On appeal, the court rejected this argument. Judge Mohyuddin QC held that, even where there was no debt (because for example it was disputed), the court retained discretion whether or not to annul.

In exercising that discretion, the district judge had correctly taken into account relevant factors including the debtor's conduct, possible grounds for further investigations by the trustee in bankruptcy and whether the debtor was, in any event, insolvent.

The court also held that the judge had been right to take into account the fact that the consequence of annulment would be to "wipe away" the effect of the bankruptcy such that time would have been deemed to continue to run, and creditors' claims could now be time-barred.

Khan v Singh-Sall and another, (2022) EWHC 1913 (Ch)

Our content explained

Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.

Mills & Reeve Sites navigation
A tabbed collection of Mills & Reeve sites.
My Mills & Reeve navigation
Subscribe to, or manage your My Mills & Reeve account.
My M&R


Register for My M&R to stay up-to-date with legal news and events, create brochures and bookmark pages.

Existing clients

Log in to your client extranet for free matter information, know-how and documents.


Mills & Reeve system for employees.