309.—(1) Nothing occurring in the initial period of the bankruptcy (that is to say, the period beginning with the day of the presentation of the petition for the bankruptcy order and ending with the vesting of the bankrupt’s estate in a trustee) is to be taken as having given rise to any rights of occupation under the Family Law (Miscellaneous Provisions) (Northern Ireland) Order 1984(1) in relation to a dwelling house comprised in the bankrupt’s estate.
(2) Where a spouse’s rights of occupation under the Order of 1984 are a charge on the estate or interest of the other spouse, or of trustees for the other spouse, and the other spouse is adjudged bankrupt—
(a)the charge continues to subsist notwithstanding the bankruptcy and, subject to the provisions of that Order, binds the trustee of the bankrupt’s estate and persons deriving title under that trustee, and
(b)any application for an order under Article 4 of that Order shall be made to the High Court.
(3) Notwithstanding any provision of the Partition Act 1868(2), where a person and his spouse or former spouse have a legal or equitable estate in a dwelling house vested in them jointly or as tenants in common and that person is adjudged bankrupt, in a suit for partition maintained by the trustee of the bankrupt’s estate the High Court may make such order as it thinks fit.
(4) On an application such as is mentioned in paragraph (2) or in a suit such as is mentioned in paragraph (3) the High Court shall make such order under paragraph (3) or Article 4 of the Order of 1984 as it thinks just and reasonable having regard to—
(a)the interests of the bankrupt’s creditors,
(b)the conduct of the spouse or former spouse, so far as contributing to the bankruptcy,
(c)the needs and financial resources of the spouse or former spouse,
(d)the needs of any children, and
(e)all the circumstances of the case other than the needs of the bankrupt.
(5) Where such an application is made or such a suit is maintained after the expiration of one year from the first vesting under Chapter IV of the bankrupt’s estate in a trustee, the High Court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt’s creditors outweigh all other considerations.
310.—(1) This Article applies where—
(a)a person who is entitled to occupy a dwelling house by virtue of a beneficial estate or interest is adjudged bankrupt, and
(b)any persons under the age of 18 with whom that person had at some time occupied that dwelling house had their home with that person at the time when the bankruptcy petition was presented and at the commencement of the bankruptcy.
(2) Whether or not the bankrupt’s spouse (if any) has rights of occupation under the Family Law (Miscellaneous Provisions) (Northern Ireland) Order 1984(3)—
(a)the bankrupt has the following rights as against the trustee of his estate—
(i)if in occupation, a right not to be evicted or excluded from the dwelling house or any part of it, except with the leave of the High Court,
(ii)if not in occupation, a right with the leave of the Court to enter into and occupy the dwelling house, and
(b)the bankrupt’s rights are a charge, having the like priority as an equitable interest created immediately before the commencement of the bankruptcy, on so much of his estate or interest in the dwelling house as vests in the trustee.
(3) The Order of 1984 has effect, with the necessary modifications, as if—
(a)the rights conferred by sub-paragraph (a) of paragraph (2) were rights of occupation under that Order,
(b)any application for leave such as is mentioned in that sub-paragraph were an application for an order under Article 4 of that Order, and
(c)any charge under sub-paragraph (b) of that paragraph on the estate or interest of the trustee were a charge under that Order on the estate or interest of a spouse.
(4) Any application for leave such as is mentioned in paragraph (2)(a) or otherwise by virtue of this Article for an order under Article 4 of the Order of 1984 shall be made to the High Court.
(5) On such an application the High Court shall make such order under Article 4 of the Order of 1984 as it thinks just and reasonable having regard to the interests of the creditors, to the bankrupt’s financial resources, to the needs of the children and to all the circumstances of the case other than the needs of the bankrupt.
(6) Where such an application is made after the expiration of one year from the first vesting (under Chapter IV) of the bankrupt’s estate in a trustee, the High Court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt’s creditors outweigh all other considerations.
311. Where any premises comprised in a bankrupt’s estate are occupied by him (whether by virtue of Article 310 or otherwise) on condition that he makes payments towards satisfying any liability arising under a mortgage of the premises or otherwise towards the outgoings of the premises, the bankrupt does not, by virtue of those payments, acquire any interest in the premises.
312.—(1) Subject to the following provisions of this Article and to Articles 314 and 315, where an individual is adjudged bankrupt and he has at a relevant time (defined in Article 314) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the High Court for an order under this Article.
(2) The High Court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.
(3) For the purposes of this Article and Articles 314 and 315, an individual enters into a transaction with a person at an undervalue if—
(a)he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration.
(b)he enters into a transaction with that person in consideration of marriage, or
(c)he enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the individual.
313.—(1) Subject to the following provisions of this Article and Articles 314 and 315, where an individual is adjudged bankrupt and he has at a relevant time (defined in Article 314) given a preference to any person, the trustee of the bankrupt’s estate may apply to the High Court for an order under this Article.
(2) The High Court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not given that preference.
(3) For the purposes of this Article and Articles 314 and 315, an individual gives a preference to a person if—
(a)that person is one of the individual’s creditors or a surety or guarantor for any of his debts or other liabilities, and
(b)the individual does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event of the individual’s bankruptcy, will be better than the position he would have been in if that thing had not been done.
(4) The High Court shall not make an order under this Article in respect of a preference given to any person unless the individual who gave the preference was influenced in deciding to give it by a desire to produce in relation to that person the effect mentioned in paragraph (3)(b).
(5) An individual who has given a preference to a person who, at the time the preference was given, was an associate of his (otherwise than by reason only of being his employee) is presumed, unless the contrary is shown, to have been influenced in deciding to give it by such a desire as is mentioned in paragraph (4).
(6) The fact that something has been done in pursuance of the order of a court does not, without more, prevent the doing or suffering of that thing from constituting the giving of a preference.
314.—(1) Subject to the provisions of this Article, the time at which an individual enters into a transaction at an undervalue or gives a preference is a relevant time if the transaction is entered into or the preference given—
(a)in the case of a transaction at an undervalue, at a time within the 5 years immediately preceding the day of the presentation of the bankruptcy petition on which the individual is adjudged bankrupt,
(b)in the case of a preference which is not a transaction at an undervalue and is given to a person who is an associate of the individual (otherwise than by reason only of being his employee), at a time within the 2 years immediately preceding that day, and
(c)in any other case of a preference which is not a transaction at an undervalue, at a time within the 6 months immediately preceding that day.
(2) Where an individual enters into a transaction at an undervalue or gives a preference at a time mentioned in sub-paragraph (a), (b) or (c) of paragraph (1) (not being, in the case of a transaction at an undervalue, a time less than 2 years before the expiration of the period of 5 years mentioned in sub-paragraph (a)), that time is not a relevant time for the purposes of Articles 312 and 313 unless the individual—
(a)is insolvent at that time, or
(b)becomes insolvent in consequence of the transaction or preference;
but the requirements of this paragraph are presumed to be satisfied, unless the contrary is shown, in relation to any transaction at an undervalue which is entered into by an individual with a person who is an associate of his (otherwise than by reason only of being his employee).
(3) For the purposes of paragraph (2), an individual is insolvent if—
(a)he is unable to pay his debts as they fall due, or
(b)the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
315.—(1) Without prejudice to the generality of Article 312(2) or 313(2), an order under either of those Articles with respect to a transaction or preference entered into or given by an individual who is subsequently adjudged bankrupt may (subject as follows)—
(a)require any property transferred as part of the transaction, or in connection with the giving of the preference, to be vested in the trustee of the bankrupt’s estate as part of that estate;
(b)require any property to be so vested if it represents in any person’s hands the application either of the proceeds of sale of property so transferred or of money so transferred;
(c)release or discharge (in whole or in part) any security given by the individual;
(d)require any person to pay, in respect of benefits received by him from the individual, such sums to the trustee of his estate as the High Court may direct;
(e)provide for any surety or guarantor whose obligations to any person were released or discharged (in whole or in part) under the transaction or by the giving of the preference to be under such new or revived obligations to that person as the Court thinks appropriate;
(f)provide for security to be provided for the discharge of any obligation imposed by or arising under the order, for such an obligation to be charged on any property and for the security or charge to have the same priority as a security or charge released or discharged (in whole or in part) under the transaction or by the giving of the preference; and
(g)provide for the extent to which any person whose property is vested by the order in the trustee of the bankrupt’s estate, or on whom obligations are imposed by the order, is to be able to prove in the bankruptcy for debts or other liabilities which arose from, or were released or discharged (in whole or in part) under or by, the transaction or the giving of the preference.
(2) An order under Article 312 or 313 may affect the property of, or impose any obligation on, any person whether or not he is the person with whom the individual in question entered into the transaction or, as the case may be, the person to whom the preference was given; but such an order—
(a)shall not prejudice any interest in property which was acquired from a person other than that individual and was acquired in good faith, for value and without notice of the relevant circumstances, or prejudice any interest deriving from such an interest, and
(b)shall not require a person who received a benefit from the transaction or preference in good faith, for value and without notice of the relevant circumstances to pay a sum to the trustee of the bankrupt’s estate, except where he was a party to the transaction or the payment is to be in respect of a preference given to that person at a time when he was a creditor of that individual.
(3) Any sums required to be paid to the trustee in acordance with an order under Article 312 or 313 shall be comprised in the bankrupt’s estate.
(4) For the purposes of this Article the relevant circumstances, in relation to a transaction or preference, are—
(a)the circumstances by virtue of which an order under Article 312 or 313 could be made in respect of the transaction or preference if the individual in question were adjudged bankrupt within a particular period after the transaction is entered into or the preference given, and
(b)if that period has expired, the fact that that individual has been adjudged bankrupt within that period.
316.—(1) This Article applies where a person is adjudged bankrupt who is or has been a party to a transaction for, or involving, the provision to him of credit.
(2) The High Court may, on the application of the trustee of the bankrupt’s estate, make an order with respect to the transaction if the transaction is or was extortionate and was not entered into more than the 3 years immediately preceding the commencement of the bankruptcy.
(3) For the purposes of this Article a transaction is extortionate if, having regard to the risk accepted by the person providing the credit—
(a)the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit, or
(b)it otherwise grossly contravened ordinary principles of fair dealing;
and it shall be presumed, unless the contrary is proved, that a transaction with respect to which an application is made under this Article is or, as the case may be, was extortionate.
(4) An order under this Article with respect to any transaction may contain such one or more of the following as the High Court thinks fit, that is to say—
(a)provision setting aside the whole or part of any obligation created by the transaction;
(b)provision otherwise varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held;
(c)provision requiring any person who is or was party to the transaction to pay to the trustee any sums paid to that person, by virtue of the transaction, by the bankrupt;
(d)provision requiring any person to surrender to the trustee any property held by him as security for the purposes of the transaction;
(e)provision directing accounts to be taken between any persons.
(5) Any sums or property required to be paid or surrendered to the trustee in accordance with an order under this Article shall be comprised in the bankrupt’s estate.
(6) Neither the trustee of a bankrupt’s estate nor an undischarged bankrupt is entitled to make an application under section 139(1)(a) of the Consumer Credit Act 1974(4) (re-opening of extortionate credit agreements) for any agreement by which credit is or has been provided to the bankrupt to be re-opened.
(7) The powers conferred by this Article are exercisable in relation to any transaction concurrently with any powers exercisable under this Order in relation to that transaction as a transaction at an undervalue.
317.—(1) This Article applies where a person engaged in any business makes a general assignment to another person of his existing or future book debts, or any class of them, and is subsequently adjudged bankrupt.
(2) The assignment is void against the trustee of the bankrupt’s estate as regards book debts which were not paid before the presentation of the bankruptcy petition, unless the assignment has been registered under the Bills of Sale (Ireland) Acts 1879(5) and 1883(6).
(3) For the purposes of paragraphs (1) and (2)—
(a)“assignment” includes an assignment by way of security or charge on book debts, and
(b)“general assignment” does not include—
(i)an assignment of book debts due at the date of the assignment from specified debtors or of debts becoming due under specified contracts, or
(ii)an assignment of book debts included either in a transfer of a business made in good faith and for value or in an assignment of assets for the benefit of creditors generally.
(4) For the purposes of registration under the Acts of 1879 and 1883 an assignment of book debts is to be treated as if it were a bill of sale given otherwise than by way of security for the payment of a sum of money; and the provisions of those Acts with respect to the registration of bills of sale apply accordingly with such necessary modifications as may be made by rules under those Acts.
318.—(1) This Article applies where a contract has been made with a person who is subsequently adjudged bankrupt.
(2) The High Court may, on the application of any other party to the contract, make an order discharging obligations under the contract on such terms as to payment by the applicant or the bankrupt of damages for non-performance or otherwise as appear to the Court to be equitable.
(3) Any damages payable by the bankrupt by virtue of an order of the High Court under this Article are provable as a bankruptcy debt.
(4) Where an undischarged bankrupt is a contractor in respect of any contract jointly with any person, that person may sue or be sued in respect of the contract without the joinder of the bankrupt.
319.—(1) This Article applies where—
(a)a bankruptcy order is made in respect of an individual to whom another individual was an apprentice or articled clerk at the time when the petition on which the order was made was presented, and
(b)the bankrupt or the apprentice or clerk gives notice to the trustee terminating the apprenticeship or articles.
(2) Subject to paragraph (6), the indenture of apprenticeship or, as the case may be, the articles of agreement shall be discharged with effect from the commencement of the bankruptcy.
(3) If any money has been paid by or on behalf of the apprentice or clerk to the bankrupt as a fee, the trustee may, on an application made by or on behalf of the apprentice or clerk, pay such sum to the apprentice or clerk as the trustee thinks reasonable, having regard to—
(a)the amount of the fee,
(b)the proportion of the period in respect of which the fee was paid that has been served by the apprentice or clerk before the commencement of the bankruptcy, and
(c)the other circumstances of the case.
(4) The power of the trustee to make a payment under paragraph (3) has priority over his obligation to distribute the bankrupt’s estate.
(5) Instead of making a payment under paragraph (3), the trustee may, if it appears to him expedient to do so on an application made by or on behalf of the apprentice or clerk, transfer the indenture or articles to a person other than the bankrupt.
(6) Where a transfer is made under paragraph (5), paragraph (2) has effect only as between the apprentice or clerk and the bankrupt.
320.—(1) Subject to paragraph (2), a lien or other right to retain possession of any of the books, papers or other records of a bankrupt is unenforceable to the extent that its enforcement would denypossession of any books, papers or other records to the official receiver or the trustee of the bankrupt’s estate.
(2) Paragraph (1) does not apply to a lien on documents which give a title to property and are held as such.