In force2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 17 · Administration in Bankruptcy

373. Power to disclaim onerous property

(1)

The Official Assignee may, by the giving of the prescribed notice, disclaim any onerous property and may do so despite having taken possession of it, endeavoured to sell it, or otherwise exercised rights of ownership in relation to it.

(2)

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

(a)

any unprofitable contract;

(b)

any other property comprised in the bankrupt’s estate which —

(i)

is unsaleable;

(ii)

is not readily saleable; or

(iii)

may give rise to a liability 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 bankrupt and the bankrupt’s estate in or in respect of the property disclaimed; and

(b)

discharges the Official Assignee from all personal liability in respect of that property as from the commencement of the Official Assignee’s trusteeship,but does not, except so far as is necessary for the purpose of releasing the bankrupt, the bankrupt’s estate and the Official Assignee from any liability, affect the rights and 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 property subject to any written law set out in the first column of the Second Schedule, unless —

(i)

the Official Assignee has given written notice of the Official Assignee’s 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 Official Assignee or one of the Official Assignee’s predecessors as trustee requiring the Official Assignee or that predecessor to decide whether or not the Official Assignee or that predecessor 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)

The Official Assignee is deemed to have adopted any contract which by virtue of this section the Official Assignee is not entitled to disclaim.

(6)

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 bankrupt to the extent of the loss or damage and accordingly may prove for the loss or damage as a bankruptcy debt.

Terms defined in this Act

bankrupt
Defined · s 2
“bankrupt” means —(a)an individual debtor who has been adjudged bankrupt by a bankruptcy order; or(b)where a bankruptcy order has been made against a firm, each of the partners in the firm;
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
liability
Defined · s 2
“liability” means a liability to pay money or money’s worth, regardless whether such liability is present or future, certain or contingent or of an amount that is fixed or liquidated or that is capable of being ascertained by fixed rules or as a matter of opinion, and includes any such liability arising —(a)under any written law;(b)under contract, tort or bailment;(c)as a result of a breach of trust by the person liable; or(d)out of an obligation to make restitution;
Open s 2
Official Assignee
Defined · s 2
“Official Assignee” means the Official Assignee appointed under section 16(1) and includes a Deputy Official Assignee, a Senior Assistant Official Assignee and an Assistant Official Assignee;
Open s 2
property
Defined · s 2
“property” includes —(a)money, goods, things in action, land and every description of property, wherever situated; and(b)obligations and every description of interest, whether present or future or vested or contingent, arising out of or incidental to property;
Open s 2
trustee
Defined · s 2
“trustee”, in relation to a bankruptcy and a bankrupt, means the trustee of the bankrupt’s estate and includes the Official Assignee when acting as trustee of the bankrupt’s estate;
Open s 2