323. Withdrawal of bankruptcy application

Subject to subsection (2) and sections 316(11) and 318(5), a bankruptcy application must not be withdrawn without the permission of the Court.

Subject to subsection (3), if no party to a bankruptcy application has, for more than one year (or such extended period as the Court may allow under subsection (4)), taken any step or proceeding in the bankruptcy application that appears from records maintained by the Court, the bankruptcy application is deemed to be withdrawn on the date immediately following the expiry of that year (or extended period).

Subsection (2) does not apply where the bankruptcy application has been stayed, or where proceedings on the application have been stayed, by the Court.

The Court may, on an application by any party made before the one year mentioned in subsection (2) has elapsed, extend the period as the Court thinks fit.

Subsection (2) applies to any bankruptcy application, whether made before, on or after 1 March 2012, but where the last step or proceeding in the bankruptcy application took place before that date, the period of one year begins on that date.

Where a bankruptcy application is deemed to be withdrawn under subsection (2), the Court may, on application, reinstate the bankruptcy application and allow the bankruptcy application to proceed on such terms as the Court thinks just.