Published Monday, 03 December 2012
The motor trader, from Co Longford, was declared bankrupt in Belfast in June. (© UTV)
Lawyers for the Irish Revenue Commissioners brought a challenge to the validity of the order made against John Alex Kane.
It is believed to be the first time the authority has sought to annul a bankruptcy secured outside its borders.
An order rescinding the earlier determination was made at the High Court in Belfast last week.
Further proceedings will now take place in January in an effort to reach a final resolution.
The case is understood to hinge on whether Mr Kane lives and works north or south of the Irish border.
The motor trader, who has had an address at Granard, Co Longford, was declared bankrupt in Belfast in June.
Under UK insolvency law the period of bankruptcy typically lasts for a year. But a much more onerous term of up to 12 years applies in the Irish Republic.
The Irish Revenue Commissioners has now formally applied to the Northern Ireland High Court to have the order annulled.
Press were excluded from a hearing in Belfast last week due to objections raised by Mr Kane.
A Courts' Service spokeswoman confirmed on Monday, however, that a rescind order was made.
With proceedings still active, the case was adjourned until 28 January.