Insolvency Act 1986

325 Claims by unsatisfied creditors. E+W

(1)A creditor who has not proved his debt before the declaration of any dividend is not entitled to disturb, by reason that he has not participated in it, the distribution of that dividend or any other dividend declared before his debt was proved, but—

(a)when he has proved that debt he is entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend or dividends which he has failed to receive; and

(b)any dividend or dividends payable under paragraph (a) shall be paid before that money is applied to the payment of any such further dividend.

(2)No action lies against the trustee for a dividend,but if the trustee refuses to pay a dividend the court may, if it thinks fit, order him to pay it and also to pay, out of his own money—

(a)interest on the dividend, at the rate for the time being specified in section 17 of the M1JudgmentsAct 1838, from the time it was withheld, and

(b)the costs of the proceedings in which the order to pay is made.

Modifications etc. (not altering text)

C1s. 325 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II

Marginal Citations