(1)Subsections (2) and (3) apply if a person acting as an insolvency practitioner seizes or disposes of any property in relation to which his functions are not exercisable because—
(a)it is for the time being subject to a restraint order made under section 41, 120 or 190, or
(b)it is for the time being subject to [F1a property freezing order made under section 245A, an interim receiving order made under section 246, a prohibitory property order made under section 255A ] or an interim administration order made under section 256,
and at the time of the seizure or disposal he believes on reasonable grounds that he is entitled (whether in pursuance of an order of a court or otherwise) to seize or dispose of the property.
(2)He is not liable to any person in respect of any loss or damage resulting from the seizure or disposal, except so far as the loss or damage is caused by his negligence.
(3)He has a lien on the property or the proceeds of its sale—
(a)for such of his expenses as were incurred in connection with the liquidation, bankruptcy, sequestration or other proceedings in relation to which he purported to make the seizure or disposal, and
(b)for so much of his remuneration as may reasonably be assigned to his acting in connection with those proceedings.
(4)Subsection (2) does not prejudice the generality of any provision of the 1985 Act, the 1986 Act, the 1989 Order or any other Act or Order which confers protection from liability on him.
(5)Subsection (7) applies if—
(a)property is subject to a restraint order made under section 41, 120 or 190,
(b)a person acting as an insolvency practitioner incurs expenses in respect of property subject to the restraint order, and
(c)he does not know (and has no reasonable grounds to believe) that the property is subject to the restraint order.
(6)Subsection (7) also applies if—
(a)property is subject to a restraint order made under section 41, 120 or 190,
(b)a person acting as an insolvency practitioner incurs expenses which are not ones in respect of property subject to the restraint order, and
(c)the expenses are ones which (but for the effect of the restraint order) might have been met by taking possession of and realising property subject to it.
(7)Whether or not he has seized or disposed of any property, he is entitled to payment of the expenses under—
(a)section 54(2) [F2or 55(3)] if the restraint order was made under section 41;
(b)section 130(3) or 131(3) if the restraint order was made under section 120;
(c)section 202(2) [F3or 203(3)] if the restraint order was made under section 190.
(8)Subsection (10) applies if—
(a)property is subject to [F4a property freezing order made under section 245A, an interim receiving order made under section 246, a prohibitory property order made under section 255A] or an interim administration order made under section 256,
(b)a person acting as an insolvency practitioner incurs expenses in respect of property subject to the order, and
(c)he does not know (and has no reasonable grounds to believe) that the property is subject to the order.
(9)Subsection (10) also applies if—
(a)property is subject to [F5a property freezing order made under section 245A, an interim receiving order made under section 246, a prohibitory property order made under section 255A] or an interim administration order made under section 256,
(b)a person acting as an insolvency practitioner incurs expenses which are not ones in respect of property subject to the order, and
(c)the expenses are ones which (but for the effect of the order) might have been met by taking possession of and realising property subject to it.
(10)Whether or not he has seized or disposed of any property, he is entitled to payment of the expenses under section 280.
Textual Amendments
F1Words in s. 432(1)(b) substituted (1.1.2006) by Serious Organised Crime and Police Act 2005 (c. 15), s. 178(8), Sch. 6 para. 23; S.I. 2005/3136, art. 3(c)
F2Words in s. 432(7)(a) substituted (1.4.2008) by Serious Crime Act 2007 (c. 27), s. 94(1), Sch. 8 para. 83(a); S.I. 2008/755, art. 2(1)(a) (with arts. 3-14)
F3Words in s. 432(7)(c) substituted (1.4.2008) by Serious Crime Act 2007 (c. 27), s. 94(1), Sch. 8 para. 83(b); S.I. 2008/755, art. 2(1)(a) (with arts. 3-14)
F4Words in s. 432(8)(a) substituted (1.1.2006) by Serious Organised Crime and Police Act 2005 (c. 15), s. 178(8), Sch. 6 para. 23; S.I. 2005/3136, art. 3(c)
F5Words in s. 432(9)(a) substituted (1.1.2006) by Serious Organised Crime and Police Act 2005 (c. 15), s. 178(8), Sch. 6 para. 23; S.I. 2005/3136, art. 3(c)
Commencement Information
I1S. 432 in force at 24.3.2003 by S.I. 2003/333, art. 2, Sch.