High Court Confirms Challenge To A Creditor's Rejection Of A Personal Insolvency Arrangement Can Only Be Brought By A PIP

Author:Ms Hilda Mannix and Darryl Broderick
Profession:Ronan Daly Jermyn
 
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In line with a recent decision of Judge Susan Ryan in the Dublin Circuit Court (further details of which can be found here), the High Court has held that only a Personal Insolvency Practitioner ("PIP") has standing to apply to the Circuit Court for a review of a creditor's rejection of a Personal Insolvency Arrangement ("PIA").

The case involved an appeal by a debtor following the rejection of his proposed PIA by a number of his creditors, including Bank of Ireland. At first instance, the Circuit Court dismissed the debtor's application for a review of the rejected PIA. As a preliminary issue on appeal before the High Court, Bank of Ireland (which was owed €720,000 and held security over the debtor's family home) argued that the appeal was invalid because it was not brought by the debtor's PIP.

Agreeing with Bank of Ireland, Ms. Justice Marie Baker held that on a plain reading of the Personal Insolvency (Amendment) Act, 2015 ("the Act") and the relevant Circuit Court Rules, only a PIP has standing to apply for a review under section 115A of the Act and/or to appeal any finding of the Circuit Court on such a review. While Ms. Justice Baker acknowledged the "practical problems" her decision might have, she also noted that the Court would only exercise its jurisdiction to award costs against a PIP in "exceptional circumstances". She also noted that section 115A...

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