Section 82: Court to approve proposal

82. Court to approve proposal (1) After the proposal has been accepted by the creditors, the trustee shall, as soon as practicable— (a) apply to the Court for approval of the proposal; and (b) send notice of the hearing of the application to the insolvent and to every known creditor. (2) The Court shall, before approving a proposal, hear any objection that is made by or on behalf of a creditor. (3) The Court may refuse to approve the proposal where it considers that— (a) this section has not been complied with; (b) the terms of the proposal are not reasonable or are not calculated to benefit the general body of creditors; or (c) for any other reason, it is not expedient that the proposal be approved. (4) The Court shall not approve a proposal where it does not provide for the payment, before any other debts are paid, of— (a) those debts that would have priority under this Act if the insolvent was adjudicated bankrupt; (b) the trustee’s fees and expenses that are properly incurred by the trustee in respect of the proposal; and (c) costs incurred by a person other than the insolvent in organising and conducting a meeting of creditors for the purpose of voting on a proposal. (5) Where it approves the proposal, the Court may correct or supply any formal or accidental error or omission, but may not alter the substance of the proposal. (6) A proposal that is approved by the Court is binding on all the creditors whose debts are provable under this subsection and are affected by the terms of the proposal.