Disclaimer.
Realisation of securities
held by secured creditors.
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are not enemies or enemy subjects in priority to the un- secured debts due to creditors who are enemies or enemy subjects: Provided that nothing in this section shall be construed as authorising any payment being made to a creditor who is an enemy or an enemy subject.
10. (1.) Every liquidator appointed under the princi- pal Ordinance to wind up the trade or personal affairs of any person may, by writing signed by him, with the per- mission of the Governor, disclaim any lease or contract under which such person is subject to any liability.
(2) Notwithstanding anything contained in section 10 of the principal Ordinance, such disclaimer shall operate to de- termine, as from the date on which the disclaimer is signed, the rights interests and liabilities of such person under the lease or contract disclaimed, but shall not, except so far as is necessary for the said purpose, affect the rights or liabi- lities of any other person.
(3.) Where the person whose affairs are being wound up was the lessee of any premises, and the liquidator has with the consent of the lessor sublet the said premises or any portion thereof, the lessor, upon such disclaimer, shall not be entitled to distrain on any premises held by such sub- tenant except for the rent formerly payable by the sub- tenant to the liquidator in respect of these premises, and the lessor shall not be entitled to enter on any premises so held by such sub-tenant except for breach of some covenant contained in the sub-lense, if any.
(4.) Notice of such disclaimer shall, so far as is practi- cable, be given to every party to the lease or contract disclaimed other than the person whose affairs are being wound up: Provided that no such disclaimer shall be void or otherwise affected on the ground only that any notice required by this sub-section shall not have been given.
(5.) Any person injured by the operation of a disclaimer under this section shall, to the extent of the injury, be deemed to be a creditor of the person whose trade or personal affairs are being wound up.
(6.) Any person who alleges himself to be so injured shall, within six weeks of his being required by the liquida- tor to do so, furnish to the liquidator a statement of the extent of such injury, verified by statutory declaration, together with the evidence in support of such statement.
(7.) Upon receiving such statement and the evidence in support thereof the liquidator shall proceed to admit or reject such claim or to admit it in part, and, subject to any order made by the Court under the next succeeding sub- section, his decision shall be final for all purposes of the winding up.
(8.) If the party alleging himself to be injured by the operation of the disclaimer shall be dissatisfied with such decision it shall be lawfni for him, within one mouth of such decision being communicated to him, to require the liquida- tor to apply to the Court for directions, and the liquidator shall thereupon apply to the Court for directions, and any order made by the Court on any such application shall be final for all purposes of the winding up. The party alleging himself to be injured shall be entitled to be heard upon any such application.
(9.) It shall be lawful for the Court to enlarge the time limited in sub-section (6) or sub-section (8) of this section upon such terms as the justice of the case may require, and any such enlargement may be ordered although the appli- cation for the same be not made until after the expiration of the time limited.
11.-1.) It shall be lawful for any liquidator appointed under the principal Ordinance to give notice to any secured creditor of the person whose affairs such liquidator has been appointed to wind up to realise his security within such time from the receipt of snch notice by the secured creditor as the liquidator may by such notice or by any modification thereof appoint: Provided that the time so appointed shall not be less than one month, and provided that no such notice shall be given except with the permis- sion of the Governor.
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