Section 72: Court to approve composition

72. Court to approve composition (1) The Court shall approve a composition if it is to be binding. (2) A composition approved by the Court shall bind all the creditors in respect of provable debts due to them by the bankrupt. (3) The Court may refuse to approve a composition where it considers that— (a) section 69 or 70 has not been complied with; (b) the terms of the composition are not reasonable or are not calculated to benefit the general body of creditors; (c) the bankrupt is guilty of misconduct that justifies the Court in refusing, qualifying or suspending the bankrupt’s discharge; or (d) for any other reason, it should not approve the composition. (4) The Court shall not approve a composition where it does not provide for the payment, before any other debts are paid, of those debts that have priority under Section E of Sub-part IV of Part III. (5) The bankrupt or the Official Receiver may apply to the Court to approve a composition. (6) Notice of the application shall be given to each creditor. (7) Before approving a composition, the Court shall— (a) receive a report from the Official Receiver as to the terms of the composition and the bankrupt’s conduct; and (b) hear any objection by or on behalf of a creditor. (8) Where the Court approves a composition, it may correct or supply any formal or accidental error or omission, but may not alter the substance of the composition.