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Insolvency Act 1985

1985 CHAPTER 65

An Act to make provision with respect to the insolvency of companies and individuals, the winding up of companies, the disqualification and personal liability of persons involved in the management of companies and the avoidance of certain transactions at an undervalue; and for connected purposes.

[30th October 1985]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

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Commencement Information

I1Act not in force at Royal Assent see s.236(2); Act wholly in force at 29.12.1986.

Part I E+W+S+N.I.

1—11.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1E+W+S+N.I.

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Amendments (Textual)

Part II E+W+S+N.I.

12—14.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2E+W+S+N.I.

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Amendments (Textual)

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3E+W+S+N.I.

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Amendments (Textual)

16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4E+W+S+N.I.

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Amendments (Textual)

17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5E+W+S+N.I.

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Amendments (Textual)

18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6E+W+S+N.I.

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Amendments (Textual)

19—107.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7E+W+S+N.I.

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Amendments (Textual)

108

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

(3)—(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

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Amendments (Textual)

109. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10E+W+S+N.I.

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Amendments (Textual)

Part III E+W+S+N.I.

110—211.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11E+W+S+N.I.

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Amendments (Textual)

Part IV E+W+S+N.I. Miscellaneous and Supplemental

MiscellaneousE+W+S+N.I.

212. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12E+W+S+N.I.

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Amendments (Textual)

[F13213 Co-operation between courts exercising jurisdiction in relation to insolvency law.E+W+S+N.I.

(1)An order made by a court in any part of the United Kingdom in the exercise of jurisdiction in relation to insolvency law shall be enforced in any other part of the United Kingdom as if it were made by a court exercising the corresponding jurisdiction in that other part ; but, without prejudice to the following provisions of this section, nothing in this subsection shall require a court in any part of the United Kingdom to enforce, in relation to property situated in that part, any order made by a court in any other part of the United Kingdom.

(2)The Secretary of State, with the concurrence in relation to property situated in EngIand and Wales of the Lord Chancellor, may by order make provision for securing that a trustee or assignee under the insolvency law of any part of the United Kingdom has, with such modifications as may be specified in the order, the same rights in relation to any property situated in another part of the United Kingdom as he would have in the corresponding circumstances if he were a trustee or assignee circumstances under the insolvency law of that other part.

(3)The courts having jurisdiction in relation to insolvency law in any part of the United Kingdom shall assist the courts having the corresponding jurisdiction in any other part of the United Kingdom or any relevant country or territory.

(4)For the purposes of subsection (3) above a request made to a court in any part of the United Kingdom by a court in any other part of the United Kingdom or in a relevant country or territory shall be authority for the court to which the request is made to apply, in relation to any matters specified in the request, the insolvency law which is applicable by either court in relation to comparable matters falling within its jurisdiction ; and in exercising its discretion under this subsection, a court shall have regard in particular to the rules of private international law.

(5)Where a person who is a trustee or assignee under the insolvency law of any part of the United Kingdom claims property situated in any other part of the United Kingdom (whether by virtue of an order under subsection (2) above or otherwise), the submission of that claim to the court exercising jurisdiction in relation to insolvency law in that other part shall be treated in the same manner as a request made by a court for the purposes of subsection (3) above.

(6)Section 38 of the M1Criminal Law Act 1977 (execution of warrant of arrest throughout the United Kingdom) shall apply to a warrant which, in exercise of any jurisdiction in relation to insolvency law, is issued in any part of the United Kingdom for the arrest of a person as it applies to a warrant issued in that part of the United Kingdom for the arrest of a person charged with an offence.

(7)Without prejudice to any power to make rules of court, any power to make provision by subordinate legislation for the purpose of giving effect in relation to companies or individuals to the insolvency law of any part of the United Kingdom shall include power to make provision for the purpose of giving effect in that part to any provision made by or under the preceding provisions of this section.

(8)An order under subsection (2) above shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(9)In this section “insolvency law” means—

(a)in relation to England and Wales, provision extending to England and Wales and made by or under this Act or Parts XIX to XXI of the 1985 Act;

(b)in relation to Scotland, provision extending to Scotland and made by or under this Act, Parts XVIII to XXI of the 1985 Act or the M2Bankruptcy (Scotland) Act 1985;

(c)in relation to Northern Ireland, provision made by or under the Bankruptcy Acts (Northern Ireland) 1857 to 1980, Part V, VI or IX of the M3Companies Act (Northern Ireland) 1960 or Part IV of the M4Companies (Northern Ireland) Order 1978;

(d)in relation to any relevant country or territory, so much of the law of that country or territory as corresponds to provisions falling within any of the foregoing paragraphs;

and references in this subsection to any enactment include, in relation to any time before the coming into force of that enactment, references to the corresponding enactment in force at that time.

(10)In this section “relevant country or territory” means—

(a)any of the Channel Islands or the Isle of Man; or

(b)any country or territory designated for the purposes of this section by the Secretary of State by order made by statutory instrument.]

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Amendments (Textual)

Marginal Citations

[F14214 Parliamentary disqualification etc.E+W+S+N.I.

(1)Where a court in England and Wales or Northern Ireland adjudges an individual bankrupt or a court in Scotland awards sequestration of an individual’s estate, the individual shall be disqualified—

(a)for sitting or voting in the House of Lords

(b)for being elected to, or sitting or voting in, the House of Commons; and

(c)for sitting or voting in a committee of either House.

(2)Where an individual is disqualified under this section, the disqualification shall cease—

(a)except where the adjudication is annulled or the award recalled or reduced without the individual having been first discharged, on the discharge of the individual; and

(b)in the said excepted case, on the annulment, recall or reduction, as the case may be.

(3)No writ of summons shall be issued to any lord of Parliament who is for the time being disqualified under this section for sitting and voting in the House of Lords.

(4)Where a member of the House of Commons who is disqualified under this section continues to be so disqualified until the end of the period of six months beginning with the day of the adjudication or award, his seat shall be vacated at the end of that period.

(5)A court which makes an adjudication or award such as is mentioned in subsection (1) above in relation to any lord of Parliament or member of the House of Commons shall forthwith certify the adjudication or award to the Speaker of the House of Lords or, as the case may be, to the Speaker of the House of Commons.

(6)Where a court has certified an adjudication or award to the Speaker of the House of Commons under subsection (5) above, then, immediately after it becomes apparent which of the following certificates is applicable, the court shall certify to the Speaker of the House of Commons—

(a)that the period of six months beginning with the day of the adjudication or award has expired without the adjudication or award having been annulled, recalled or reduced; or

(b)that the adjudication or award has been annulled, recalled or reduced before the end of that period.

(7)Subject to the preceding provisions of this section, so much of this Act and of any other enactment (whenever passed) and of any subordinate legislation (whenever made) as—

(a)makes provision for or in connection with bankruptcy in one or more parts of the United Kingdom; or

(b)makes provision conferring a power of arrest in connection with the winding up or insolvency of companies in one or more parts of the United Kingdom,

shall apply in relation to persons having privilege of Parliament or peerage as it applies in relation to persons not having such privilege.]

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Amendments (Textual)

215. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15E+W+S+N.I.

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Amendments (Textual)

216. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16E+W+S+N.I.

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Amendments (Textual)

217 Amendments of Restrictive Trade Practices Act 1976.E+W+S+N.I.

[F17(1)No restriction in respect of any of the matters specified in subsection (2) below shall, after the coming into force of this section, be regarded as a restriction by virtue of which the M5Restrictive Trade Practices Act 1976 applies to any agreement (whenever made).

(2)The said matters are—

(a)the charges to be made, quoted or paid for insolvency services supplied, offered or obtained;

(b)the terms or conditions on or subject to which insolvency services are to be supplied or obtained;

(c)the extent (if any) to which, or the scale (if any) on which, insolvency services are to be made available, supplied or obtained;

(d)the form or manner in which insolvency services are to be made available, supplied or obtained;

(e)the persons or classes of persons for whom or from whom, or the areas or places in or from which, insolvency services are to be made available or supplied or are to be obtained.

(3)In this section “insolvency services” means the services of persons acting as insolvency practitioners or carrying out under the law of Northern Ireland functions corresponding to those mentioned in section 1(2) or (3) above, in their capacity as such; and expressions which are also used in the said Act of 1976 have the same meanings as in that Act.]

(4)In Schedule 1 to the said Act of 1976 (services excluded from designated services), after paragraph 9 there shall be inserted the following paragraph—

9AInsolvency services within the meaning of section 217 of the Insolvency Act 1985.

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Amendments (Textual)

Marginal Citations

F18218. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F18S. 218 repealed (22.8.1996) by 1996 c. 18, ss. 242, 243, Sch. 3 Pt. I (with ss. 191-195, 202)

219 Amendments of Banking Act 1979.E+W+S+N.I.

(1)For subsections (1) and (2) of section 18 of the M6Banking Act 1979 (grounds on which a recognised bank or licensed institution may be wound up on the petition of the Bank of England), there shall be substituted the following subsections—

(1)On a petition presented by the Bank by virtue of this section, the court having jurisdiction under the Companies Act 1985 may wind up a recognised bank or licensed institution under that Act if—

(a)the institution is unable to pay its debts within the meaning of section 518 of that Act; or

(b)the court is of the opinion that it is just and equitable that the institution should be wound up;

and for the purposes of such a petition an institution which defaults in an obligation to pay any sum due and payable to a depositor shall be deemed to be unable to pay its debts as mentioned in paragraph (a) above.

(2)If a petition is presented by the Bank by virtue of this section for the winding up of a recognised bank or licensed institution which is a partnership (whether limited or not), the court has jurisdiction, and the Companies Act 1985 has effect, as if the institution concerned were an unregistered company within the meaning of Part XXI of that Act.

(2)For subsection (4) of that section there shall be substituted the following subsection—

(4)In its application to Northern Ireland, this section shall have effect—

(a)with the substitution of a reference to the Companies Act (Northern Ireland) 1960 for any reference to the Companies Act 1985;

(b)with the substitution of a reference to section 211 of the said Act of 1960 for the reference to section 518 of the said Act of 1985;

(c)with the substitution of a reference to Part IX of the said Act of 1960 for the reference to Part XXI of the said Act of 1985; and

(d)with the insertion in subsection (2) after the words “(whether limited or not)” of the words “then, notwithstanding section 348(d) of the Companies Act (Northern Ireland) 1960 (exclusion of partnerships etc. having less than eight members)”.

(3)In subsection (2) of section 19 of that Act (cases in which the Bank of England may disclose information obtained under or for the purposes of that Act), after paragraph (b) there shall be inserted the following paragraph—

(ba)in connection with any proceedings under any provision of Parts XVIII to XXI of the Companies Act 1985 or any provision (other than section 100) of Part II of the Insolvency Act 1985; or.

(4)In subsection (8) of that section, for paragraph (a) there shall be substituted the following paragraphs—

(a)for the reference in subsection (2) to Parts XVIII to XXI of the Companies Act 1985 there shall be substituted a reference to Parts V, VI and IX of the Companies Act (Northern Ireland) 1960;

(aa)for any reference in subsection (5) to section 432 or 442 of the said Act of 1985 there shall be substituted respectively a reference to section 159 or 165A of the said Act of 1960;.

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Marginal Citations

220 Amendments of County Courts Act 1984.E+W+S+N.I.

(1)The M7County Courts Act 1984 shall be amended as follows.

(2)In section 112(4)(b) (minimum amount which must be owed to creditor presenting, or joining in, a bankruptcy petition while administration order is in force), for “£400” there shall be substituted “£1500”.

(3)In subsection (1) of section 115 (execution while administration order is in force if debtor’s property exceeds £10 in value), for “£10” there shall be substituted the words “the minimum amount”.

(4)After subsection (1) of the said section 115 there shall be inserted the following subsection—

(1A)In subsection (1) above “the minimum amount” means £50 or such other amount as the Lord Chancellor may by order specify instead of that amount or the amount for the time being specified in such an order; and an order under this subsection shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

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Marginal Citations

221. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19E+W+S+N.I.

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Amendments (Textual)

222—229.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20E+W+S+N.I.

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Amendments (Textual)

Other supplemental provisionsE+W+S+N.I.

230—234.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21E+W+S+N.I.

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Amendments (Textual)

235 Consequential amendments, transitional provisions, savings and repeals.E+W+S+N.I.

(1)The enactments mentioned in Schedule 8 to this Act shall have effect with the amendments there specified (being amendments consequential on the provisions of this Act).

(2)—(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F22

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Amendments (Textual)

236 Short title, commencement and extent.E+W+S+N.I.

(1)This Act may be cited as the Insolvency Act 1985.

(2)This Act shall come into force on such day as the Secretary of State may, by order made by statutory instrument, appoint; and different days may be so appointed for different purposes and for different provisions.

(3)—(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23

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Subordinate Legislation Made

P1Power of appointment conferred by s. 236(2) exercised: S.I. 1986/6, 185, 463, 840 and 1924

Amendments (Textual)

SCHEDULES

Section 8.

SCHEDULE 1E+W+S+N.I. Insolvency Practitioners Tribunal

1—4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24E+W+S+N.I.

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Amendments (Textual)

Supervision by Council on TribunalsE+W+S+N.I.

F255. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

Parliamentary disqualificationE+W+S+N.I.

6(1)In Part III of Schedule 1 to the M8House of Commons Disqualification Act 1975 (disqualifying offices), there shall be inserted at the appropriate place the following entry—E+W+S+N.I.

Any member of the Insolvency Practitioners Tribunal in receipt of remuneration.

(2)A corresponding amendment shall be made in Part III of Schedule 1 to the M9Northern Ireland Assembly Disqualification Act 1975.

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Marginal Citations

SCHEDULE 2E+W+S+N.I. . . . F26

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Amendments (Textual)

SCHEDULES 3—5E+W+S+N.I. . . . F27

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Amendments (Textual)

Section 109.

SCHEDULE 6E+W+S+N.I. Amendments of 1985 Act

Disqualification etc.E+W+S+N.I.

1, 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F28E+W+S+N.I.

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Amendments (Textual)

3In section 441(1) (inspector’s report to be evidence of opinion of inspectors), at the end there shall be inserted the words “ and, in proceedings on an application under section 13 of the Insolvency Act 1985, as evidence of any fact stated therein ”.E+W+S+N.I.

4In section 449(1) (non-disclosure, except for certain purposes, of information obtained by Secretary of State), after paragraph (b) there shall be inserted the following paragraph—E+W+S+N.I.

(ba)with a view to the institution of, or otherwise for the purposes of, any proceedings on an application under section 12 or 13 of the Insolvency Act 1985,.

5, 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F29E+W+S+N.I.

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Amendments (Textual)

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F30E+W+S+N.I.

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Amendments (Textual)

F30Sch. 6 para. 7 repealed by Company Directors Disqualification Act 1986 (c. 46, SIF 27), s. 23(2), Sch. 4 and also expressed to be repealed in part (subject to the transitional and saving provisions mentioned in S.I. 1990/355, art. 5) by Companies Act 1989 (c. 40, SIF 27), ss. 212, 213(2), Sch. 24

Voluntary arrangementsE+W+S+N.I.

8In section 153(3) (financial assistance allowed), for the words “section 601 (winding up imminent or in progress)” there shall be substituted the words “ Chapter II of Part II of the Insolvency Act 1985 ”.E+W+S+N.I.

Administration ordersE+W+S+N.I.

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F31E+W+S+N.I.

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Amendments (Textual)

10In sections 395(1) and 410(2) (certain charges void if not registered), after the word “liquidator” there shall be inserted the words “ or administrator ”.E+W+S+N.I.

11In section 425(1) (power of company to compromise with creditors and members), for the words “, of the liquidator” there shall be substituted the words “ or an administration order being in force in relation to a company, of the liquidator or administrator ”.E+W+S+N.I.

12In section 426(6) liability of officer or liquidator of company for default in connection with the circulation of information as to a compromise), after the word “liquidator” there shall be inserted the words “ or administrator ”.E+W+S+N.I.

13In section 478(6) (receiver to be appointed within one month of cessation of appointment of earlier receiver), at the end there shall be inserted the words—E+W+S+N.I.

and for the purposes of calculating the period of one month under this subsection no account shall be taken of any period during which an administration order under Part II of the Insolvency Act 1985 is in force.

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F32E+W+S+N.I.

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Amendments (Textual)

15—17.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F33E+W+S+N.I.

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Amendments (Textual)

Receivers (Scotland)E+W+S+N.I.

18In subsection (3) of section 463 (effect of floating charge on winding up), for the words “section 614(2)” there shall be substituted the words “ section 89 of the Insolvency Act 1985 ”.E+W+S+N.I.

19In subsection (6) of section 464 (ranking of floating charges), for the words “section 614(2) (preferential debts in winding up)” there shall be substituted the words “ section 89 of the Insolvency Act 1985 ”.E+W+S+N.I.

20—22.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F34E+W+S+N.I.

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Amendments (Textual)

Winding upE+W+S+N.I.

23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F35E+W+S+N.I.

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Amendments (Textual)

24For subsection (6) of section 461 (application of winding-up rules to petition under Part XVI) there shall be substituted the following subsection—E+W+S+N.I.

(6)The power under section 106 of the Insolvency Act 1985 to make rules shall, so far as it relates to a winding-up petition, apply for the purposes of a petition under this Part.

25—44.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F36E+W+S+N.I.

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Amendments (Textual)

45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F37E+W+S+N.I.

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Amendments (Textual)

46For subsection (2) of section 657 (effect of Crown disclaimer) there shall be substituted the following subsection—E+W+S+N.I.

(2)As regards property in England and Wales, subsections (3) and (5) to (7) of section 91 of the Insolvency Act 1985 and section 92 of that Act shall apply as if the property had been disclaimed by the liquidator under the said section 91 immediately before the dissolution of the company.

47For subsection (1) of section 658 (application of section 620) there shall be substituted the following subsection—E+W+S+N.I.

(1)Subsection (7) of section 91 of the Insolvency Act 1985 shall apply to land in England and Wales which by operation of law vests subject to a rentcharge in the Crown or any other person on the dissolution of a company as it applies to land so vesting on a disclaimer under that section.

48—52.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F38E+W+S+N.I.

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Amendments (Textual)

SCHEDULE 7E+W+S+N.I. . . . F39

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Amendments (Textual)

Section 235.

SCHEDULE 8E+W+S+N.I. Consequential Amendments

The M10Bills of Sale Act (1878) Amendment Act 1882E+W+S+N.I.

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Marginal Citations

1In section 11 of the Bills of Sale Act (1878) Amendment Act 1882 (local registration of bills of sale), for the words “the London bankruptcy district as defined by the Bankruptcy Act 1869” and the words “the said London bankruptcy district” there shall be substituted, in each case, the words “the London insolvency district”.E+W+S+N.I.

The M11Deeds of Arrangement Act 1914E+W+S+N.I.

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Marginal Citations

2(1)The Deeds of Arrangement Act 1914 shall be amended as follows.E+W+S+N.I.

(2)In subsections (1) and (4) of section 3 (extension by court having jurisdiction in bankruptcy of period for assent and registration), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(3)In section 11 (security of trustee)—

(a)in subsection (1), for the words “in bankruptcy in” and the words “London bankruptcy district” there shall be substituted, respectively, the words “for the purposes of Part III of the Insolvency Act 1985 in relation to” and the words “London insolvency district”; and

(b)in subsection (2), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(4)In section 13(2) (default in transmission of accounts to Secretary of State), for the words from “and the judge” onwards there shall be substituted the words “and, in addition, shall be guilty of contempt of court and liable to be punished accordingly”.

(5)In section 14 (transmission of accounts to creditors), for the words from “the High Court” onwards there shall be substituted the words “he shall be guilty of contempt of court and liable to be punished accordingly”.

(6)In section 15(1) (audit of accounts in accordance with the M12Bankruptcy Act 1914), for the words “all the provisions of the Bankruptcy Act 1914” there shall be substituted the words “any rules made under section 207 of the Insolvency Act 1985”.

(7)In section 16 (payment of undistributed moneys into court), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(8)In section 19(1) (provisions for protection of trustees under void deeds), for the words “receiving order” there shall be substituted the words “bankruptcy order”.

(9)In section 23 (courts in which applications for enforcement of trusts to be made), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(10)In section 30(1) (interpretation), for the words “the Bankruptcy Act 1914” there shall be substituted the words “the Insolvency Act 1985”.

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Marginal Citations

The M13Settled Land Act 1925E+W+S+N.I.

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Marginal Citations

3In section 103 of the Settled Land Act 1925 (legal estate in settled land not to vest in trustee in bankruptcy of estate owner), for the words from the beginning to “an” there shall be substituted the words “For the purposes of determining, where the estate owner of any settled land is bankrupt, whether the legal estate in the settled land is comprised in, or is capable of being claimed for, the bankrupt’s estate, the legal estate in the settled land shall be deemed not to vest in the”.E+W+S+N.I.

The M14Law of Property Act 1925E+W+S+N.I.

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Marginal Citations

4In section 52(2)(b) of the Law of Property Act 1925 (exceptions from requirement that conveyances are to be by deed), for the words “section fifty-four of the M15Bankruptcy Act 1914” there shall be substituted the words “section 91 or 161 of the Insolvency Act 1985”.E+W+S+N.I.

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Marginal Citations

The M16Land Registration Act 1925E+W+S+N.I.

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Marginal Citations

5(1)The Land Registration Act 1925 shall be amended as follows.E+W+S+N.I.

(2)In section 42 (transmissions on bankruptcy of proprietor)—

(a)in subsection (1), for the words “part of the property of the bankrupt divisible amongst his creditors” there shall be substituted the words “comprised in the bankrupt’s estate”; and

(b)in subsection (2), for the words “section fifty-four of the Bankruptcy Act 1914” there shall be substituted the words “section 161 of the Insolvency Act 1985”.

(3)In section 61 (protection of creditors prior to registration of trustee in bankruptcy)—

(a)in subsection (3), for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”;

(b)in subsection (6)—

(i)for the words from “, notwithstanding” to “the disposition,” there shall be substituted the words “, notwithstanding that the person making the disposition is adjudged bankrupt,”; and

(ii)for the words “an available act of bankruptcy or of the receiving order or” there shall be substituted the words “the bankruptcy petition or the”;

(c)in subsection (7), for the words “a receiving order” there shall be substituted the words “a bankruptcy order”;

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40

(4)In section 62 (rules made as to certain details)—

(a)in paragraph (a), after the word “debtor”, in each place where it occurs, there shall be inserted the words “or bankrupt” and for the words “receiving order” there shall be substituted the words “bankruptcy order”; and

(b)in paragraph (b), for the words “receiving order” there shall be substituted the words “bankruptcy order”.

(5)(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40

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Amendments (Textual)

The M17Agricultural Credits Act 1928E+W+S+N.I.

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Marginal Citations

6In section 7 of the Agricultural Credits Act 1928 (effect of floating charge), in paragraph (a)(i) of the proviso, for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”.E+W+S+N.I.

The Third Parties (Rights against Insurers) Act 1930E+W+S+N.I.

7(1)The Third Parties (Rights against Insurers) Act 1930 shall be amended as follows.E+W+S+N.I.

(2)In section 1 (rights of third parties against insurers on bankruptcy etc. of the insured)—

(a)in subsection (1)(b), after the words “winding-up order” there shall be inserted the words “or an administration order” and at the end there shall be inserted the words “or of a composition or scheme proposed for the purposes of Chapter II of Part II of the Insolvency Act 1985 being approved under that Chapter”;

(b)in subsection (2), for the words from “an order is made” to “law of bankruptcy” there shall be substituted the words “the estate of any person falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985” and for the words “the said Act” there shall be substituted the words “any such order”;

(c)in subsection (3), for the words from “making of an order” to “his estate” there shall be substituted the words “estate of any person falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

(3)In section 2 (duty to give necessary information to third parties)—

(a)in subsection (1)—

(i)for the words from “an order being made” to “estate of any person” there shall be substituted the words “the estate of any person falling to the administered in accordance with an order under section 228 of the Insolvency Act 1985”;

(ii)after the words “winding-up order” there shall be inserted the words “or an administration order”, and

(iii)after the word “liquidator” there shall be inserted the word “administrator,”;

and

(b)after that subsection there shall be inserted the following subsection—

(1A)The reference in subsection (1) of this section to a trustee includes a reference to the supervisor of a composition or scheme proposed for the purposes of, and approved under, Chapter II of Part II or Chapter I of Part III of the Insolvency Act 1985.

(4)In section 3 (settlement between insurers and insured)—

(a)after the words “winding-up order” there shall be inserted the words “or an administration order”;

(b)after the words “or winding up” there shall be inserted the words “or the day of the making of the administration order”; and

(c)after the word “commencement”, in the second place where it occurs, there shall be inserted the words “or day”.

(5)In section 4(b) (application to Scotland), for the words from “an order” to “law of bankruptcy” there shall be substituted the words “an estate falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F41E+W+S+N.I.

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Amendments (Textual)

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F42E+W+S+N.I.

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Amendments (Textual)

The M18Arbitration Act 1950E+W+S+N.I.

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Marginal Citations

10In section 3(2) of the Arbitration Act 1950 (application to court with consent of committee of inspection in certain cases where party to arbitration agreement adjudged bankrupt), for the words “committee of inspection” there shall be substituted the words “committee established under section 148 of the Insolvency Act 1985”.E+W+S+N.I.

The M19Administration of Justice Act 1956E+W+S+N.I.

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11In section 40 of the Administration of Justice Act 1956 (effect of registration of judgments of courts outside England and Wales)—E+W+S+N.I.

(a)the words “the Bankruptcy Act 1914” shall be omitted; and

(b)for the words “those Acts” there shall be substituted the words “the said Act of 1869”.

The M20Licensing Act 1964E+W+S+N.I.

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12(1)The Licensing Act 1964 shall be amended as follows.E+W+S+N.I.

(2)For paragraph (c) of section 8(1) (justices’ licence to be transferred to trustee of licensee in the case of a bankruptcy or composition or scheme), there shall be substituted the following paragraph—

(c) where the holder of the licence has been adjudged bankrupt, or a composition or scheme proposed by the holder of the licence has been approved under Chapter I of Part III of the Insolvency Act 1985, or a trustee has been appointed under a deed of arrangement within the meaning of the Deeds of Arrangement Act 1914 for the benefit of the creditors of the holder of the licence, to the trustee of the bankrupt’s estate or under the deed or the supervisor of the composition or scheme or the new tenant or occupier of the premises;

(3)For subsection (5) of section 10 (protection orders where licensee dies or is adjudged bankrupt etc.) there shall be substituted the following subsection—

(5)Where the holder of a justices’ licence has died or has been adjudged bankrupt, or a composition or scheme proposed by the holder of a justices’ licence has been approved under Chapter I of Part III of the Insolvency Act 1985, or a trustee has been appointed under a deed of arrangement within the meaning of the Deeds of Arrangement Act 1914 for the benefit of the creditors of the holder of a justices’ licence, the personal representatives or the person who is for the time being the trustee of the bankrupt’s estate or under the deed or the supervisor of the composition or scheme shall be in the same position as regards carrying on business under the licence as a person to whom a protection order has been validly granted on the date of the death, or, as the case may be, the date on which he became trustee or supervisor.

The M21Law of Property (Joint Tenants) Act 1964E+W+S+N.I.

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13In paragraph (b) of the proviso to section 1(1) of the Law of Property (Joint Tenants) Act 1964 (assumptions on sale of land by survivor of joint tenants), for the words “a receiving order in bankruptcy” there shall be substituted the words “a bankruptcy order”.E+W+S+N.I.

The M22General Rate Act 1967E+W+S+N.I.

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Marginal Citations

14For subsection (2) of section 90 of the General Rate Act 1967 (period of disqualification for membership of local valuation panel by reason of bankruptcy) there shall be substituted the following subsection—E+W+S+N.I.

(2)A disqualification attaching to a person by reason of subsection (1)(a) of this section shall cease—

(a)unless the bankruptcy order made against that person is previously annulled, on his discharge from bankruptcy; and

(b)if the bankruptcy order is so annulled, on the date of the annulment.

The M23Medicines Act 1968E+W+S+N.I.

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Marginal Citations

15In section 72(4) of the Medicines Act 1968 (which specifies the persons who may carry on the business of a pharmacist in the case of his death or disability), at the end there shall be inserted the words—E+W+S+N.I.

; and in paragraph (b) above the reference to a trustee appointed under a composition, scheme or deed of arrangement includes a reference to the supervisor of a composition or scheme proposed for the purposes of, and approved under, Chapter I of Part III of the Insolvency Act 1985.

The M24Transport Act 1968E+W+S+N.I.

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Marginal Citations

F4316. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F43Sch. 8 para. 16 repealed (1.1.1996) by 1994 c. 40, s. 81, Sch. 17; S.I. 1995/2835, art. 2 (with Sch.) and expressed to be repealed (1.1.1996) by 1995 c. 23, s. 60(2), Sch. 8 Pt. I (with ss. 54, 55); S.I. 1995/2181, art. 2 (with Sch.)

The M25Insolvency Services (Accounting and Investment) Act 1970E+W+S+N.I.

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Marginal Citations

17In section 4 of the Insolvency Services (Accounting and Investment) Act 1970 (payment of interest under section 660(5) of the 1985 Act), for the words from “section 660(5)” to “1948” there shall be substituted the words “rules made by virtue of paragraph 16 of schedule 5 to the Insolvency Act 1985.”E+W+S+N.I.

The M26Conveyancing and Feudal Reform (Scotland) Act 1970E+W+S+N.I.

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Marginal Citations

18In schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 (the standard conditions of a security), in standard condition 9(2)(b), for the words from “or an order” to “1925” there shall be substituted the words “or his estate falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.E+W+S+N.I.

The M27Superannuation Act 1972E+W+S+N.I.

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Marginal Citations

19In section 5(2) of the Superannuation Act 1972 (rule that benefit is unassignable not to affect powers of court under section 51(2) of the M28Bankruptcy Act 1914)—E+W+S+N.I.

(a)for the words “section 51(2) of the Bankruptcy Act 1914” there shall be substituted the words “section 156 of the Insolvency Act 1985”; and

(b)for the words “the said section 51(2)” there shall be substituted the words “section 51(2) of the Bankruptcy Act 1914 or the said section 156”.

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The M29Road Traffic Act 1972E+W+S+N.I.

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Marginal Citations

20In section 150 of the Road Traffic Act 1972 (bankruptcy of insured or secured persons not to affect claims by third parties)—E+W+S+N.I.

(a)for paragraph (b) of subsection (1) there shall be substituted the following paragraph—

“(b) the said person dies and his estate falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985,”;

(b)in paragraph (c) of that subsection, after the words “winding-up order” there shall be inserted the words “or an administration order”;

(c)in subsection (2), for the words from “an order’s being made” to “include” there shall be substituted the words “a person’s estate falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985 shall have effect as”.

The M30Land Charges Act 1972E+W+S+N.I.

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Marginal Citations

21(1)The Land Charges Act 1972 shall be amended as follows.E+W+S+N.I.

(2)In section 5(8) (unregistered bankruptcy petition not to bind purchaser in good faith, for money or money’s worth without notice of an available act of bankruptcy) the words “without notice of an available act of bankruptcy” shall be omitted.

(3)In section 6 (the register of writs and orders affecting land)—

(a)for paragraph (c) of subsection (1) there shall be substituted the following paragraph—

(c) any bankruptcy order, whether or not the bankrupt’s estate is known to include land,;

(b)in subsection (3), for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”;

(c)for subsection (5) there shall be substituted the following subsection—

(5)Subject to subsection (6) below, the title of a trustee in bankruptcy shall be void as against a purchaser of a legal estate in good faith for money or money’s worth unless the bankruptcy order is for the time being registered under this section.; and

(d)in subsection (6), the words “without notice of an available act of bankruptcy” shall be omitted.

(4)In section 16(2) (general rules)—

(a)for the words “general rules under section 132 of the M31Bankruptcy Act 1914 for carrying into effect the objects of that Act” there shall be substituted the words “rules under section 207 of the Insolvency Act 1985”;

(b)for the words “a receiving order in bankruptcy” there shall be substituted the words “a bankruptcy order”; and

(c)for the words “by that Act” there shall be substituted the words “by Part III of that Act”.

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The M32Local Government Act 1972E+W+S+N.I.

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22For subsection (1) of section 81 of the Local Government Act 1972 (period of disqualification for membership of local authority by reason of bankruptcy) there shall be substituted the following subsection—E+W+S+N.I.

(1)Where a person is disqualified under section 80 above by reason of having been adjudged bankrupt, the disqualification shall cease—

(a)unless the bankruptcy order made against that person is previously annulled, on his discharge from bankruptcy; and

(b)if the bankruptcy order is so annulled, on the date of the annulment.

The M33Matrimonial Causes Act 1973E+W+S+N.I.

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23In section 39 of the Matrimonial Causes Act 1973 (settlement etc. made in compliance with a property adjustment order may be avoided on bankruptcy of settlor), for the words from “a settlement of” onwards there shall be substituted the words “a transaction in respect of which an order may be made under section 174 of the Insolvency Act 1985 (transactions at an undervalue and preferences)”.E+W+S+N.I.

24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F44E+W+S+N.I.

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Amendments (Textual)

The M34Solicitors Act 1974E+W+S+N.I.

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Marginal Citations

25In section 12(1)(i) of the Solicitors Act 1974 (application for a practising certificate by a person who has been adjudged bankrupt and has obtained his discharge), for the words “and having obtained his discharge” there shall be substituted the words “and discharged”.E+W+S+N.I.

The M35Social Security Pensions Act 1975E+W+S+N.I.

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Marginal Citations

F4526. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

The M36Recess Elections Act 1975E+W+S+N.I.

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Marginal Citations

27In section 1(2) of the Recess Elections Act 1975 (which defines certain expressions used in that Act), in the definition of “certificate of vacancy” for the words from “the relevant bankruptcy enactment” to the end of paragraph (b) there shall be substituted the words “section 214(6)(a) of the Insolvency Act 1985”.E+W+S+N.I.

The M37Insolvency Act 1976E+W+S+N.I.

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F4628. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F46Sch. 8 para. 28 repealed (5.11.1993) by 1993 c.50, s. 1(1), Sch. 1 Pt I, Group I

The M38Land Drainage Act 1976E+W+S+N.I.

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Marginal Citations

F4729. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W

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Amendments (Textual)

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F48E+W+S+N.I.

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Amendments (Textual)

The M39Employment Protection (Consolidation) Act 1978E+W+S+N.I.

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Marginal Citations

31F49(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

F49(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F50(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F51

F49(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

The Banking Act 1979E+W+S+N.I.

32(1)The Banking Act 1979 shall be amended as follows.E+W+S+N.I.

(2)In section 6 (grounds for revocation of recognition or licence), in subsection (3)(d), for the words “a receiving order” there shall be substituted the words “a bankruptcy order”.

(3)In section 28 (payments to depositors when institution becomes insolvent)—

(a)in subsection (3) (meaning of “insolvent” in relation to a body corporate), after paragraph (b) there shall be inserted the words or

(c)on the holding of a creditors’ meeting summoned under section 83 of the Insolvency Act 1985 (effect of insolvency on members’ voluntary winding up);

(b)in subsection (4)(b) (meaning of “insolvent” in relation to a partnership), for the words “receiving order” there shall be substituted the words “bankruptcy order”;

(c)in subsection (6) (rights of Deposit Protection Board)—

(i)for sub-paragraph (ii) of paragraph (b) there shall be substituted the following sub-paragraph—

(ii)to be a member of any committee established under section 148 of the Insolvency Act 1985;;

(ii)for sub-paragraph (iv) of that paragraph there shall be substituted the following sub-paragraph—

(iv)to be a member of a committee established for the purposes of Part XX or Part XXI of the Companies Act 1985 under section 590 of that Act or under section 74 or 75 of the Insolvency Act 1985 or of a committee of inspection appointed for the purposes of Part V or Part IX of the Companies Act (Northern Ireland) 1960;

(iii)in the words after the said sub-paragraph (iv), for the words “committee of inspection” there shall be substituted the words “such a committee as is mentioned in paragraph (b)(ii) or (iv) above”;

(d)in paragraph (b) of subsection (7) (which refers to the person in whom property is vested where an adjudication of bankruptcy is annulled under section 21(2) of the M40Bankruptcy Act 1914), for the words from “subsection (2)” to the end of the paragraph there shall be substituted the words “section 116(4) of the Insolvency Act 1985, to any person in whom the property of the firm is vested under section 129(4) of that Act; or”.

(4)In section 31(7) (which refers to rules under section 663 of the Companies Act 1985 and to rules under section 132 of the Bankruptcy Act 1914)—

(a)in paragraph (a) (England and Wales), for the words from “section 663” to “1914” there shall be substituted the words “sections 106 and 207 of the Insolvency Act 1985”; and

(b)in paragraph (b) (Scotland), for the words “section 663 of the Companies Act 1985” there shall be substituted the words “the said section 106”.

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Marginal Citations

The M41Estate Agents Act 1979E+W+S+N.I.

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Marginal Citations

33In section 23(2) of the Estate Agents Act 1979 (prohibition on bankrupts engaging in estate agency work to cease on discharge), for paragraph (b) there shall be substituted the following paragraph—E+W+S+N.I.

“(b) he is discharged from bankruptcy.”

The M42Public Passenger Vehicles Act 1981E+W+S+N.I.

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Marginal Citations

34In section 19(3) of the Public Passenger Vehicles Act 1981 (holder of PSV operator’s licence to give notice of bankruptcy etc.), after the word “estate” there shall be inserted the words “or the making of an administration order under Chapter III of Part II of the Insolvency Act 1985 in relation to the holder”.E+W+S+N.I.

The M43Supreme Court Act 1981E+W+S+N.I.

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Marginal Citations

35In section 40A of the Supreme Court Act 1981 (which relates to the deduction of the administrative and clerical expenses of garnishees), for the words “section 40 of the Bankruptcy Act 1914” there shall be substituted the words “section 179 of the Insolvency Act 1985”.E+W+S+N.I.

The M44Civil Jurisdiction and Judgments Act 1982E+W+S+N.I.

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36After paragraph (b) of section 18(3) of the Civil Jurisdiction and Judgments Act 1982 (judgments to which provisions relating to the enforcement of judgments within the United Kingdom do not apply), there shall be inserted the following paragraph—E+W+S+N.I.

“(ba) a judgment given in the exercise of jurisdiction in relation to insolvency law, within the meaning of section 213 of the Insolvency Act 1985;”.

The M45Insurance Companies Act 1982E+W+S+N.I.

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Marginal Citations

37(1)The Insurance Companies Act 1982 shall be amended as follows.E+W+S+N.I.

(2)In section 55(5) (creditors’ meetings etc. in winding up of company with long-term business), for the words “subsections (1) to (3) of section 540” there shall be substituted the words “subsection (3) of section 540”.

(3)In section 56 (continuation of long term business of insurance companies in liquidation)—

(a)in subsection (4), for the words “Section 556(3) of the Companies Act” and for the words “section 556 of the Companies Act” there shall be substituted, respectively, the words “Section 90(5) of the Insolvency Act 1985” and the words “section 90 of the said Act of 1985”;

(b)in subsection (7), for the words “committee of inspection” there shall be substituted the words “a specified committee”.

(4)In section 59 (winding-up rules)—

(a)in subsection (1), for the words “section 663 of the Companies Act” there shall be substituted the words “section 106 of the Insolvency Act 1985”; and

(b)in subsection (2), for the words “section 663 of the Companies Act” and the words “section 614 of, and schedule 19 to, the Companies Act” there shall be substituted, respectively, the words “section 106 of the Insolvency Act 1985” and the words “section 89 of, and schedule 4 to, the Insolvency Act 1985”.

The M46County Courts Act 1984E+W+S+N.I.

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Marginal Citations

38(1)The County Courts Act 1984 shall be amended as follows.E+W+S

F52(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F52(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)In section 109(2) (which relates to the deduction of the administrative and clerical expenses of garnishees), for the words “section 40 of the Bankruptcy Act 1914” there shall be substituted the words “section 179 of the Insolvency Act 1985”.

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Amendments (Textual)

The Housing Act 1985E+W+S+N.I.

39(1)The Housing Act 1985 shall be amended as follows.E+W+S+N.I.

(2)In paragraph 3(4) of schedule 18 (suspension of condition as to residence), for the words “is administered in bankruptcy under section 130 of the Bankruptcy Act 1914” there shall be substituted the words “falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

(3)In paragraph 5(3) of that schedule (conditions affecting house purchased by means of advance), for the words “being administered in bankruptcy under section 130 of the Bankruptcy Act 1914” there shall be substituted the words “falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

The M47Administration of Justice Act 1985E+W+S+N.I.

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Marginal Citations

40In section 16(1)(g) of the Administration of Justice Act 1985 (conditional licences), for the words “and having obtained his discharge” there shall be substituted the words “and discharged”.E+W+S+N.I.

Section 235.

SCHEDULE 9E+W+S+N.I. Transitional Provisions and Savings

Part I E+W+S+N.I.

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F53E+W+S+N.I.

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Amendments (Textual)

Part II E+W+S+N.I.

2, 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F54E+W+S+N.I.

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Amendments (Textual)

4—10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F55E+W+S+N.I.

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Amendments (Textual)

Parts III and IV E+W+S+N.I.

11—24.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F56E+W+S+N.I.

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Amendments (Textual)

SCHEDULE 10E+W+S+N.I. . . . F57

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Amendments (Textual)

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