Annulment of bankruptcy on making of voluntary arrangement
1The following shall be substituted for section 261 of the Insolvency Act 1986 (effect of voluntary arrangement: undischarged bankrupt)—
“261Additional effect on undischarged bankrupt
(1)This section applies where—
(a)the creditors' meeting summoned under section 257 approves the proposed voluntary arrangement (with or without modifications), and
(b)the debtor is an undischarged bankrupt.
(2)Where this section applies the court shall annul the bankruptcy order on an application made—
(a)by the bankrupt, or
(b)where the bankrupt has not made an application within the prescribed period, by the official receiver.
(3)An application under subsection (2) may not be made—
(a)during the period specified in section 262(3)(a) during which the decision of the creditors' meeting can be challenged by application under section 262,
(b)while an application under that section is pending, or
(c)while an appeal in respect of an application under that section is pending or may be brought.
(4)Where this section applies the court may give such directions about the conduct of the bankruptcy and the administration of the bankrupt’s estate as it thinks appropriate for facilitating the implementation of the approved voluntary arrangement.”