Singapore legislation

Section 230

of Insolvency, Restructuring and Dissolution Act 2018

Section 230

Power to disclaim onerous property

(1)

A judicial manager or liquidator may, by the giving of the prescribed notice to the creditors and the Official Receiver, disclaim any onerous property regardless of whether the judicial manager or liquidator has taken possession of the onerous property, endeavoured to sell the onerous property, or otherwise exercised rights of ownership in relation to the onerous property.

(2)

The following is onerous property for the purposes of this section:

(a)

any unprofitable contract;

(b)

any other property of the company which —

(i)

is unsaleable;

(ii)

is not readily saleable; or

(iii)

may give rise to a liability of the company to pay money or perform any other onerous act.

(3)

A disclaimer under this section —

(a)

determines, as from the date of the disclaimer, the rights, interests and liabilities of the company in or in respect of the property disclaimed; and

(b)

does not, except so far as is necessary for the purpose of releasing the company from any liability, affect the rights or liabilities of any other person.

(4)

A notice of disclaimer may not be given under subsection (1) in respect of any property —

(a)

in the case of any property subject to any written law set out in the first column of the Second Schedule, unless —

(i)

the judicial manager or liquidator (as the case may be) has given written notice of his or her intention to disclaim the property to the relevant person set out opposite in the second column; and

(ii)

a period of 28 days starting on the date of the notice mentioned in sub‑paragraph (i) has elapsed; or

(b)

in any case, if —

(i)

a person interested in the property has applied in writing to the judicial manager or liquidator (as the case may be) or any of the judicial manager or liquidator’s predecessors, requiring the judicial manager or liquidator or that predecessor to decide whether he or she will disclaim the property; and

(ii)

the notice of disclaimer is not given under this section in respect of that property within a period of 28 days, or such longer period as the Court may allow, starting on the date of the application mentioned in sub‑paragraph (i).

(5)

Any person sustaining loss or damage in consequence of the operation of a disclaimer under this section is deemed to be a creditor of the company to the extent of the loss or damage and may prove for the loss or damage in the judicial management or winding up of the company.

Read in full context — Insolvency, Restructuring and Dissolution Act 2018 →