Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 17 · Administration in Bankruptcy
376. Order under section 375 in relation to leaseholds
Feedback & supportThe Court must not make any order under section 375 vesting property of a leasehold nature in any person, except on terms making that person —
subject to the same liabilities and obligations as the bankrupt was subject to under the lease on the day the bankruptcy order was made; or
if the Court thinks fit, subject to the same liabilities and obligations as that person would be subject to if the lease had been assigned to that person on that day.
For the purposes of an order under section 375 relating to only part of any property comprised in a lease, the requirements of subsection (1) apply as if the lease comprised only the property to which the order relates.
property
“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;
Where subsection (1) applies and no person is willing to accept an order under section 375 on the terms mentioned in subsection (1), the Court may (by order under section 375) vest the estate or interest of the bankrupt in the property in —
bankrupt
“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;
any person who is liable (whether personally or in a representative capacity and whether alone or jointly with the bankrupt) to perform the lessee’s covenants in the lease; or
such person mentioned in paragraph (a) freed and discharged from all estates, encumbrances and interests created by the bankrupt.
Where subsection (1) applies, and a person declines to accept any order under section 375, that person is excluded from all interest in the property.