In forceAmended2020 Revised Edition

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Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 7 · Judicial Management

95. Effect of application for judicial management order or filing of written notice of appointment of interim judicial manager

Amended

Last amended by an amending law of 2021.

(1)

Subject to subsection (2), in any case where a company makes an application for a judicial management order under section 91, or lodges a written notice of appointment of an interim judicial manager under section 94(5)(a), during the automatic moratorium period —

(a)

no order may be made, and no resolution may be passed, for the winding up of the company;

(b)

no step may be taken to enforce any security over any property of the company, or to repossess any goods under any hire‑purchase agreement, chattels leasing agreement or retention of title agreement, except with the permission of the Court and subject to such terms as the Court may impose;

(c)

no other proceedings may be commenced or continued against the company, except with the permission of the Court and subject to such terms as the Court may impose; and

(d)

no enforcement order or other legal process may be issued, continued or executed, and no distress may be levied, against the company or its property, except with the permission of the Court and subject to such terms as the Court may impose.

(2)

Subsection (1) does not apply to a company that makes an application for a judicial management order or lodges a written notice of appointment of an interim judicial manager under section 94(5)(a) if, within the period of 12 months immediately before the date on which that application is made or that written notice is lodged, the company —

(a)

made an earlier application for a judicial management order, to which subsection (1) applied; or

(b)

lodged an earlier written notice of appointment of an interim judicial manager under section 94(5)(a) to which subsection (1) applied.

(3)

Subsection (1) does not affect any of the following:

(a)

the exercise of any legal right under any arrangement (including a set‑off arrangement or a netting arrangement) that may be prescribed by regulations;

(b)

the commencement or continuation of any proceedings that may be prescribed by regulations.

(4)

In this section, “automatic moratorium period” means —

(a)

in any case where a company makes an application for a judicial management order under section 91, the period starting on the date on which the application is made, and ending on the date on which the application is decided by the Court; or

(b)

in any case where a company lodges a written notice of appointment of an interim judicial manager under section 94(5)(a), the period starting on the date of lodgment of the written notice and ending on the earliest of the following dates:

(i)

the date of the appointment of a judicial manager;

(ii)

the date on which the term of appointment of the interim judicial manager ends under section 94(6);

(iii)

the rejection of the resolution to place the company under judicial management at a meeting of creditors convened under section 94(7).

Terms defined in this Act

chattels leasing agreement
Defined · s 72A
“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
Open s 72A
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
goods
Defined · s 273
“goods” includes all chattels personal;
Open s 273
hire-purchase agreement
Defined · s 72A
“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
Open s 72A
judicial manager
Defined · s 88
“judicial manager”, in relation to a company, means a person appointed under this Part to manage the company and its affairs, business and property, but does not, unless a contrary intention appears, include an interim judicial manager;
Open s 88
netting arrangement
Defined · s 61
“netting arrangement” means an arrangement under which 2 or more claims or obligations can be converted into a net claim or obligation, and includes a close‑out netting arrangement (under which actual or theoretical debts are calculated during the course of a contract for the purpose of enabling them to be set off against each other or to be converted into a net debt);
Open s 61
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
regulations
Defined · s 2
“regulations” means regulations made under section 449;
Open s 2
retention of title agreement
Defined · s 72A
“chattels leasing agreement”, “hire-purchase agreement” and “retention of title agreement” have the meanings given by section 88(1);
Open s 72A
security
Defined · s 61
“security” means any mortgage, charge, pledge, lien or other security recognised by law;
Open s 61
set‑off arrangement
Defined · s 61
“set‑off arrangement” means an arrangement under which 2 or more debts, claims or obligations can be set off against each other;
Open s 61