In forceAmended2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 8 · Winding Up

206. Restriction of rights of creditor as to enforcement order or attachment

Amended

Last amended by an amending law of 2021.

(1)

Where a creditor has obtained an enforcement order against the goods or land of a company, or has attached any debt due to the company, and the company is subsequently wound up, the creditor is not entitled to retain the benefit of the enforcement order or attachment against the liquidator, unless the creditor has completed the execution of the enforcement order or attachment before the date of the commencement of the winding up, but —

(a)

where any creditor has had notice of a meeting having been called at which a resolution for voluntary winding up is to be proposed, the date on which the creditor so had notice is for the purposes of this section substituted for the date of the commencement of the winding up;

(b)

a person, who purchases in good faith under a sale by the bailiff any goods of the company on which an enforcement order has been executed, acquires in all cases a good title to the goods against the liquidator; and

(c)

the rights conferred by this subsection on the liquidator may be set aside by the Court in favour of the creditor to such extent and subject to such terms as the Court thinks fit.

(2)

For the purposes of this section —

(a)

an enforcement order against goods is completed by seizure and sale;

(b)

an attachment of a debt is completed by receipt of the debt; and

(c)

an enforcement order against land is completed by sale or, in the case of an equitable interest, by the appointment of a receiver.

(3)

For the purposes of this section and section 207 —

“bailiff” includes any officer charged with the execution of any writ or other process;

“goods” includes all chattels personal.

Terms defined in this Act

commencement of the winding up
Defined · s 217
“commencement of the winding up”, in relation to a company, means —(a)in a case where the company is being wound up under an order of the Court made at a time when the company was being wound up voluntarily — the time of the commencement of the voluntary winding up as determined in accordance with paragraph (d) or (e);(b)in a case where a company is being wound up under an order of the Court on an application made while the company was in judicial management — the time of the commencement of the judicial management as determined in accordance with this section;(c)in a case where a company is being wound up under an order of the Court in any other case — the time of the making of the winding up application;(d)in a case where the company is being wound up voluntarily and a provisional liquidator has been appointed before the resolution for voluntary winding up was passed — the time when the declaration mentioned in section 161(1) was lodged with the Registrar of Companies; or(e)in any other case where the company is being wound up voluntarily — the time of the passing of the resolution for voluntary winding up.
Open s 217
company
Defined · s 2
“company” has the meaning given by section 4(1) of the Companies Act 1967;
Open s 2
Court
Defined · s 2
“Court” means the General Division of the High Court;
Open s 2
creditor
Defined · s 273
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part 14, means a creditor to whom the debtor owes a debt provable in bankruptcy;
Open s 273
debt
Defined · s 288
“debt” means any debt, or any liability to pay money, that is unsecured, present, certain, and of an amount that is fixed or liquidated;
Open s 288
goods
Defined · s 273
“goods” includes all chattels personal;
Open s 273
liquidator
Defined · s 2
“liquidator” includes the Official Receiver when acting as the liquidator of a corporation;
Open s 2
officer
Defined · s 61
“officer”, in relation to a corporation, includes —(a)a director or secretary of the corporation, or a person employed in an executive capacity by the corporation;(b)a receiver and manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and(c)a liquidator of a company appointed in a voluntary winding up,but does not include —(d)a receiver who is not also a manager;(e)a receiver and manager appointed by the Court;(f)a liquidator appointed by the Court or by the creditors; or(g)a judicial manager appointed under Part 7;
Open s 61
resolution for voluntary winding up
Defined · s 61
“resolution for voluntary winding up” means the resolution mentioned in section 160;
Open s 61