Social Security Act 1975

Section 153.

SCHEDULE 18 Priority of Debts in Cases of Personal and Company Insolvency

1 (1) The relevant enactments relating to personal insolvency are the following—

(a) section 33 of the [1914 c. 59.] Bankruptcy Act 1914 ; and

(b) section 118 of the [1913 c. 20.] Bankruptcy (Scotland) Act 1913.

(2) For the operation of those enactments, " the relevant event" in section 153(2) is to be construed as follows—

(a) in England and Wales, it means the receiving order or death ; and

(b) in Scotland, it means the award of sequestration or death, or the concourse of diligence for distribution of the estate of a party being notour bankrupt.

2 (1) The relevant enactment relating to companies' winding-up is section 319 of the [1948 c. 38.] Companies Act 1948: but no priority under that enactment is extended by section 153(1) where a company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company.

(2) For the operation of that enactment, " the relevant event" in section 153(2) is to be construed as follows—

(a) where the company is wound up compulsorily—

(i) if it had previously commenced to be wound up voluntarily, " the relevant event " means the passing of the winding-up resolution, and

(ii) otherwise, it means the appointment (or first appointment) of a provisional liquidator or, in the absence of such an appointment, the making of the winding-up order ;

(b) in any other case, " the relevant event" means the passing of the winding-up resolution.

3 (1) The relevant enactments relating to the remedies of debenture holders and chargees are the following—

(a) section 94 of the Companies Act 1948 ; and

(b) section 19 of the [1972 c. 67.] Companies (Floating Charges and Receivers) (Scotland) Act 1972.

(2) For the operation of those enactments, " the relevant event" in section 153(2) is to be construed as follows—

(a) where a receiver is appointed on behalf of debenture holders or by or on the application of the holders of a floating charge, it means that appointment; and

(b) where possession of any property is taken by or on behalf of debenture holders or the holders of a floating charge, it means that taking of possession.