In the UK case of CFL Finance Limited v Rubin and Ors, a creditor had sought to make an individual bankrupt. A creditors' meeting was held. At the meeting, a proposal for an Individual Voluntary Arrangement was approved by the creditor that held the largest portion of debt (and therefore 90.43% of the vote). The other two creditors voted against the proposal.
One opposing creditor sought orders either to revoke the approval of the arrangement or to reverse the decision by the supervisor of the creditors' meeting to admit the creditor who voted in favour of the proposal. The opposing creditor argued that there was a material irregularity in relation to the creditors' meeting. Prior to the creditors' meeting, the major creditor had entered into a settlement agreement, which meant it was no longer owed the debt.
The Court made an order revoking the approval of the proposal for the Individual Voluntary Arrangement on the basis that there was a material irregularity in relation to the creditors' meeting that approved the arrangement because the creditor who voted in favour of the proposal ought not to have been allowed to vote at the meeting.
See the judgment here.