Section 85: Cancellation or variation of proposal

85. Cancellation or variation of proposal (1) At any time after it has approved a proposal, the Court may, where it is satisfied that a ground listed in subsection (2) applies— (a) on the application of the trustee or any creditor, vary or cancel the proposal; (b) if asked to do so by the applicant or any other creditor, adjudicate the insolvent bankrupt. (2) The grounds referred to in subsection (1) are— (a) the insolvent’s statement of affairs accompanying the proposal did not substantially set out the true position or the insolvent or gave wrong or misleading replies at his examination, and it was unlikely that the proposal would have been accepted if the insolvent had disclosed the true facts; [Issue 3] I14 – 52 Revised Laws of Mauritius (b) the insolvent has failed to carry out or comply with the terms of the proposal; (c) the creditors generally will suffer injustice or undue delay if the proposal proceeds; and (d) for any other reason, the proposal ought to be varied or cancelled. (3) On cancellation of the proposal, unless the Court orders otherwise, all property of the insolvent vested in the trustee and not sold or disposed of by the trustee vests, without the necessity for any conveyance, transfer or assignment— (a) in the insolvent; or (b) if the Court cancels the proposal and adjudicates the insolvent bankrupt, in the Official Receiver. (4) An order cancelling the proposal, or cancelling the proposal and adjudicating the insolvent bankrupt, shall not prejudice or affect the validity of any contract, sale, disposition or payment duly made or anything duly done under the proposal while it was in force. (5) Where the insolvent files an application for his own adjudication, the proposal shall be cancelled as if it was cancelled by the Court. Section C – Summary instalment order