Controversial property developer Tom McFeely's British bankruptcy status has been overturned.

The Priory Hall developer was declared bankrupt in London's High Court in January, but today Justice Sandra Proudman "rescinded" the decision and ordered the bankruptcy proceedings to be re-heard.

The bankruptcy status of the former IRA hunger striker now lies in a jurisdiction limbo between Ireland and the UK after bankruptcy proceedings were issued in Dublin last December.

Lay litigant Theresa McGuinness appealed the UK bankruptcy arguing she had begun bankruptcy proceedings in Ireland before he filed papers with London's High Court.

Ms McGuinness started proceedings in December 2011 after Mr McFeely failed to pay a court award of over € 100,000 made in 2009 against his company, Coalport Ltd.

She was awarded damages against Coalport after it emerged that a house she had bought had serious structural defects.

Her supporters claimed outside court with legal costs and interest she is now owed nearly €500,000.

Mr McFeely has strongly argued against the bankruptcy proceeding in Ireland.

It takes up to 12 years to be discharged as a bankrupt in Ireland opposed to one year in the UK.

But Justice Proudman rescinded Mr McFeely's UK bankruptcy after it was discovered he failed to disclose the Irish bankruptcy proceedings when he filed papers with London's High Court.

She said: "When asked on bankruptcy papers 'are you involved in legal action?' Mr McFeely simply ticked the no box. He said he read it as just relating to legal proceedings in the UK."

Justice Proudman said the UK bankruptcy court registrar was not made aware of the possible "jurisdiction issues" and they should be argued in court.

She said while she "understood" Mr McFeely would find it attractive to be declared a bankrupt in the UK she questioned why he should be allowed to "forum shop".

Mr McFeely faces a bankruptcy hearing in Ireland on 23 July, where the court will have to deal with the "knotty issue" of if it has jurisdiction or if it still rests with the UK courts.

A date for a UK bankruptcy re-hearing has not yet been set but would likely occur after the Irish hearing.

The developer is believed to owe more than £200 million to various creditors, including up to £185 million to NAMA.

Mr McFeely has claimed Ms McGuinness is acting "vindictively".

The former provisional IRA member claims to have lived in London since 2008 and hold a British passport.

In court document he said: "The appellant wants my bankruptcy conducted in the south of Ireland because she knows it will place me in greater difficulties securing a discharge.

"I maintain this is a breach of my human rights and that it is objectionable to expose me as a British citizen to the punitive bankruptcy laws of another country."