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The Employment (Miscellaneous Provisions) (Northern Ireland) Order 1990

Status:

This is the original version (as it was originally made).

Recovery of insolvency payments made in respect of preferential debts

17.—(1) In Article 45 of the Industrial Relations (Northern Ireland) Order 1976 (transfer of rights and remedies relating to debt in respect of which payment made by the Department on insolvency of employer), the following paragraphs shall be substituted for paragraph (2)—

(2) Where a debt or any part of a debt in respect of which the Department has made a payment in pursuance of Article 42 constitutes a preferential debt within the meaning of the Insolvency (Northern Ireland) Order 1989(1) for the purposes of any provision of that Order (including any such provision as applied by any order made under that Order) or any provision of the Companies (Northern Ireland) Order 1986(2) then, without prejudice to the generality of paragraph (1), there shall be included among the rights and remedies which become rights and remedies of the Department in accordance with that paragraph any right arising under any such provision by reason of the status of the debt or that part of it as a preferential debt.

(2A) In computing for the purposes of any provision mentioned in paragraph (2) the aggregate amount payable in priority to other creditors of the employer in respect of—

(a)any claim of the Department to be so paid by virtue of paragraph (2); and

(b)any claim by the employee to be so paid made in his own right,

any claim falling within sub-paragraph (a) shall be treated as if it were a claim of the employee; but the Department shall be entitled, as against the employee, to be so paid in respect of any such claim of the Department (up to the full amount of the claim) before any payment is made to the employee in respect of any claim falling within sub-paragraph (b)..

(2) The following paragraphs shall be inserted after paragraph (3) of that Article—

(3A) Where the Department makes any such payment as is mentioned in paragraph (3) and the sum (or any part of the sum) falling to be paid by the employer on account of the contributions in respect of which the payment is made constitutes a preferential debt within the meaning of the Insolvency (Northern Ireland) Order 1989(3) for the purposes of any provision mentioned in paragraph (2) then, without prejudice to the generality of paragraph (3), there shall be included among the rights and remedies which become rights and remedies of the Department in accordance with that paragraph any right arising under any such provision by reason of the status of that sum (or that part of it) as a preferential debt.

(3B) In computing for the purposes of any provision referred to in paragraph (3A) the aggregate amount payable in priority to other creditors of the employer in respect of—

(a)any claim of the Department to be so paid by virtue of paragraph (3A); and

(b)any claim by the persons competent to act in respect of the scheme,

any claim falling within sub-paragraph (a) shall be treated as if it were a claim of those persons; but the Department shall be entitled, as against those persons, to be so paid in respect of any such claim of the Department (up to the full amount of the claim) before any payment is made to them in respect of any claim falling within sub-paragraph (b).

(3C) Until the coming into operation of Article 346 of, and Schedule 4 to, the Insolvency (Northern Ireland) Order 1989 this Article shall have effect with the substitution of

  • “(a)

    Article 19 of the Bankruptcy Amendment (Northern Ireland) Order 1980(4); or

    (b)

    Article 570 of, and Schedule 18 to, the Companies (Northern Ireland) Order 1986(5),

in—

(a)paragraph (2) for the words from “the Insolvency (Northern Ireland) Order 1989 [1989 NI 19]” to “1986”; and

(b)paragraph (3A) for the words from “the Insolvency (Northern Ireland) Order 1989” to “paragraph (2)”..

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