Part 5Other provision about safety, standards etc

Remediation of certain defects

I1125Meeting remediation costs of insolvent landlord

1

This section applies if, in the course of the winding up of a company which is a landlord under a lease of a relevant building or any part of it, it appears—

a

that there are relevant defects relating to the building, and

b

that the company is under an obligation (howsoever imposed) to remedy any of the relevant defects or is liable to make a payment relating to any costs incurred or to be incurred in remedying any of the relevant defects.

2

The court may, on the application of a person acting as an insolvency practitioner in relation to the company, by order require a body corporate or partnership associated with the company—

a

to make such contributions to the company’s assets as the court considers to be just and equitable, or

b

to make such payments to a specified person as the court considers to be just and equitable for the purpose of meeting costs incurred or to be incurred in remedying relevant defects mentioned in subsection (1)(b).

Section 124(4) applies for the purposes of this section.

3

An order may be made where proceedings for the winding up of the company were commenced before (as well as after) the coming into force of this section.

4

In this section—

  • “act as an insolvency practitioner” has the meaning given by section 388 of the Insolvency Act 1986;

  • “associated”: see section 121;

  • “the court” means a court having jurisdiction to wind up the company;

  • “partnership” has the meaning given by section 121;

  • “relevant building”: see section 117;

  • “relevant defect”: see section 120;

  • “specified” means specified in the order.