PART 1Application or petition for sequestration

Concurrent proceedings

I117Concurrent proceedings for sequestration or analogous remedy

1

If, in the course of sequestration proceedings (referred to in this section and in section 18 as the “instant proceedings”), a person who is a petitioner for sequestration, the debtor, or a creditor concurring in a debtor application is or becomes aware of any of the circumstances mentioned in subsection (2), that person must as soon as may be take the action mentioned in subsection (3).

2

The circumstances are that, notwithstanding the instant proceedings—

a

a petition for sequestration of the debtor's estate is before a sheriff,

b

such sequestration has been awarded F1and the debtor’s estate is being sequestrated,

c

a debtor application F2has been made in relation to the debtor's estate F3is pending,

d

sequestration has been awarded by virtue of any such application F4and the debtor’s estate is being sequestrated,

e

a petition for the appointment of a judicial factor on the debtor's estate is before a court,

f

such a judicial factor has been appointed,

g

a petition is before a court for the winding up of the debtor under F5section 28 of the Limited Partnerships Act 1907, Part 4 or 5 of the Insolvency Act 1986 or section 372 of the Financial Services and Markets Act 2000,

F6ga

such a petition has been granted,

gb

an application in respect of the debtor is before a court under section 29 of the Limited Partnerships Act 1907,

gc

such an application has been granted,

h

an application for an analogous remedy in respect of the debtor's estate is proceeding, or

i

such an analogous remedy is in force.

3

The action is—

a

where the instant proceedings are by petition for sequestration, to notify the sheriff to whom that petition was presented of the circumstances in question,

b

where the instant proceedings are by debtor application, to notify AiB of those circumstances.

4

A petitioner who fails to comply with subsection (1) may be made liable for the expenses of presenting the petition for sequestration.

5

A debtor who fails so to comply commits an offence.

6

A debtor who commits an offence under subsection (5) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

7

A creditor concurring in a debtor application who fails so to comply may be made liable for the expenses of making the debtor application.

F77A

For the purposes of subsection (2)(c), a debtor application is “pending” if it has been made and has not fallen, been withdrawn or been determined.

8

In this section and in section 18, “analogous remedy” means—

a

in relation to England and Wales—

i

an individual voluntary arrangement or bankruptcy order under the Insolvency Act 1986,

ii

an administration order under section 112 of the County Courts Act 1984, or

iii

a remedy having the like effect to any of those mentioned in sub-paragraphs (i) and (ii) or to sequestration, and

b

in relation to Northern Ireland or to any other country, a remedy having the like effect as a remedy mentioned in paragraph (a).