The Court of Appeal has allowed an appeal by the Revenue Commissioners and set aside High Court orders disallowing two proofs of debt in Henry Dixon’s bankruptcy. The revised Revenue proof, for €472,154.96, remains for consideration by the Official Assignee; the appeal court did not determine that the amount is due or direct that it be admitted.
The judgment, delivered by Ms Justice Pilkington on 10 October 2022, concerns a dispute over how the Revenue could claim debts in the bankruptcy estate. Dixon was adjudicated bankrupt in June 2018 on a Revenue petition based on a debt of €82,821.44 arising from a 2008 High Court judgment. His bankruptcy adjudication remains in place while this and other estate matters are resolved.
The Revenue first submitted a proof of debt in September 2019 for €784,501.60. It later filed a revised proof for €472,154.96, explaining that the original calculation used an incorrect basis for interest. The revised amount covered debts arising from three sets of proceedings: two judgments from 2002 and the 2008 judgment. The Revenue said it would surrender its judgment mortgage security and claim the full debt in the bankruptcy.
Dixon asked the High Court to disallow any claim above €82,821.44. The High Court disallowed the original proof because it did not state the Revenue’s election about its security. It disallowed the revised proof because the Official Assignee had not first given Dixon a reasonable opportunity to dispute it or argue for referral to court.
On appeal, the court held that the High Court’s proposed procedure was not required by the Bankruptcy Act. The Official Assignee has the initial role in assessing proofs of debt, while a bankrupt can challenge that decision through the statutory appeal route or an application under section 79. The court also said the revised proof had superseded the original one, which was no longer before the Official Assignee.
The appeal court therefore vacated the High Court orders. The revised proof was not disallowed and remains to be considered by the Official Assignee. The judgment did not resolve any other issues concerning the estate or determine the final amount of Revenue’s claim.
The court’s provisional view was that the Revenue should receive its appeal costs and the Official Assignee should receive costs before the Court of Appeal, as costs in the bankruptcy. Parties had 21 days to seek a different costs order.