Irish High Court Recognises Northern Ireland IVA for the First Time, Applying Common Law Principles under its Inherent Jurisdiction

Re Keating (Application for Recognition of the IVA of Raymond Hugh Gallogly - H.MCA.2025.0000534), High Court, 01 December 2025 (Quinn J)

In a significant post-Brexit development, the High Court has, for the first time, recognised and enforced a Northern Ireland Individual Voluntary Arrangement (IVA) in the Republic of Ireland. The application was brought on behalf of the IVA Nominee and Supervisor, Seamas Keating, with Daly Hempenstall Solicitors LLP acting and Keith Farry BL appearing before Mr Justice Oisín Quinn.

The Court's decision represents a major advance in the treatment of cross-border personal insolvency arrangements between Ireland and Northern Ireland in the post-Brexit era, where the automatic recognition regime under the EU Insolvency Regulation no longer applies.

Background: the post-Brexit landscape

Under the Recast EU Insolvency Regulation (Regulation 848/2015) (the Regulations), insolvency proceedings (including UK IVAs, NI IVAs, bankruptcies and administrations) were automatically recognised across the EU prior to Brexit. Following the UK's withdrawal, no statutory framework exists to recognise such proceedings in Ireland. This has created significant challenges where debtors, creditors, or secured assets straddle the Ireland/NI border.

In the absence of EU instruments, Irish courts must revert to common law principles and the Court's inherent jurisdiction when addressing recognition of foreign insolvency proceedings.

The Application

The applicant, Seamas Keating, was appointed Nominee and Supervisor of an IVA approved by creditors on 19 October 2023 under Article 231 of the Insolvency (Northern Ireland) Order 1989. A key creditor, Bank of Ireland Mortgages, held a claim against the debtor, who held assets and liabilities with an Irish nexus. To give effect to the IVA within Ireland, the Supervisor required recognition of the IVA so that Irish creditors would be bound to the terms of the arrangement and prevented from taking inconsistent enforcement action.

The application sought:

• recognition of the Northern Ireland IVA,
• enforcement of its terms in Ireland, and
• a stay on enforcement actions by Bank of Ireland pending completion of the IVA.

The Judgment

The High Court confirmed that, notwithstanding the absence of a statutory recognition regime, it retains an inherent jurisdiction to recognise foreign insolvency proceedings where appropriate as a matter of common law. In doing so, Quinn J followed the well-established line of authority beginning with Re Mount Capital Fund Ltd IEHC 97, which concerned non-EU states, which recognises the Court's power to assist foreign insolvency processes.

The Court accepted that a Northern Ireland IVA, although not identical to an Irish personal insolvency arrangement, is a formal statutory debt resolution mechanism designed to bind creditors, regulate repayment, and avoid bankruptcy. This was sufficiently analogous to Irish personal insolvency arrangements and bankruptcy processes to satisfy the principle of equivalence.

Orders Made

The High Court therefore ordered:

• Recognition of the IVA approved under the Insolvency (Northern Ireland) Order 1989;
• Recognition and enforcement of its terms in the Republic of Ireland, specifically in respect of Bank of Ireland Mortgages;
• A stay of any enforcement actions by Bank of Ireland pending fulfilment of the IVA terms.

Significance and Impact

This decision is an important milestone in cross-border insolvency practice. It confirms that Irish courts can, and will, recognise Northern Ireland insolvency arrangements post-Brexit. It confirms that the absence of the Regulations does not leave cross-border debtors or Irish creditors without remedies. The decision further confirms that personal insolvency arrangements from Northern Ireland can now, in appropriate cases, be enforced in Ireland to restrain creditor action and give effect to agreed restructuring terms.

The ruling strengthens the predictability and functionality of cross-border debt solutions on the island of Ireland and provides welcome clarity to practitioners engaged in cross-jurisdictional insolvency matters.

Conclusion

This first-of-its-kind recognition of a Northern Ireland IVA demonstrates the Irish Court's willingness to apply common law principles flexibly and pragmatically in support of foreign insolvency processes.

For individuals and creditors operating across the Ireland/NI border, the decision confirms a viable pathway for the enforcement and protection of debt arrangements.

Daly Hempenstall Solicitors LLP is proud to have acted in this precedent-setting application and remains available to advise practitioners and clients on the implications of this judgment for future cross-border restructuring and insolvency matters.