316
deleted.
Fraudulent preference. 19 & 20 Geo. 5, c. 23. s. 255.
Effect of floating
charge.
19 & 20 Geo.
5, c. 23,
5. 266.
Disclaimer
of onerous property in case of
company wound up.
19 & 20 Geo,
5, c. 23,
8. 267.
98
(4) Subject to the retention of such sume as may be necessary for the costs and expenses of the wind- ing up, the foregoing debts shall be discharged forth. with. so far as the assets are sufficient to meet them. Aging pane of the debto-to-which priosity is given by paragraph (s) of subvostion (1) of this suation formal proat thereof chail not be required exceptin
-otherwine provided by general mules.
other person
(5) In the event of a landlord or distraining or having distrained on any goods or effects of the company within three months next before the date of a winding-up order, the debts to which priority is given by this section shall be a first charge on the goods or effects so distrained on, or the proceeds of the sale thereof:
Provided that, in respect of any money paid under any such charge. the landlord or other person shall have the same rights of priority as the person to whom the payment is made.
(6) In this section the expression "the relevant date" means--
(a) in the case of a company ordered to
wound up compulsorily which had previously con menced voluntarily, the date of the winding-up order;
be
not
to be wound
up
and
(b) in any other case, the date of the commence-
ment of the winding up.
Effect of Winding Up on antecedent and other Transactions.
252. (1) Any conveyance, mortgage, delivery of goods, payment, execution, or other act relating to property which would, if made or done by or against an individual, be deemed in his bankruptcy a fraudulent preference, shall, if made or done by or against a company, be deemed, in the event of its being wound up, 21. fraudulent preference of its creditors, and be invalid accordingly.
(2) For the purposes of this section, the commence- ment of the winding up shall be deemed to correspond with the presentation of the bankruptcy petition in the case of an individual,
(3) Any conveyance or assignment by a company of all its property to trustees for the benefit of all
its creditors shall be void to all intents.
up, 8
253. Where a company is being wound floating charge on the undertaking or property of the company created within six months of the commence- ment of the winding up shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except to the amount of any cash paid to the company at the time of or subsequently to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent. per annum,
A
254. (1) Where any part of the property of company which is being wound up consists of land of any tenure burdened with onerous covenants, of shares or stock in companies, of unprofitable con- tracts, or of any other property that is unsaleable, or not readily saleable, by reason of its binding the possessor thereof to the performance of any onerous act, or to the payment of any sum of money, the liquidator of the company, notwithstanding that he has endeavoured to sell or has taken possession of the property, or exercised any act of ownership in relation thereto, may, with the leave of the court and subject to the provisions of this section, hy
99
writing signed by him, at any time within twelve months after the commencement of the winding up or such extended period as may be allowed by the court, disclaim the property:
Provided that, where any such property bas not come to the knowledge of the liquidator within one month after the commencement of the winding up. the power under this section of disclaiming the property may be exercised at any time within twelve months after he has become aware thereof or such extended period as may be allowed by the court.
(2) The disclaimer shall operate to determine, as from the date of disclaimer, the rights, interest, and liabilities of the company, and the property of the company, in or in respect of the property disclaimed. but shall not, except so far as is necessary for the purpose of releasing the company and the property of the company from liability, affect the rights or liabilities of any other person.
(8) The court, before or on granting leave to dis- claim, may require such notices to be given to persons interested, and impose such terms as a con- dition of granting leave, and make such other order in the matter as the court thinks just.
(4) The liquidator shall not be entitled to disclaimi any property under this section in any case where an application in writing has been made to him by any persons interested in the property requiring him to decide whether he will or will not disclaim, and the liquidator has not, within a period of twenty- eight days after the receipt of the application or such further period as may be allowed by the court, given notice to the applicant that he intends to apply to the court for leave to disclaim, and, in the case of a contract, if the liquidator, after such an application as aforesaid, does not within the said period or further period disclaim the contract, the company shall be deemed to have adopted it.
(5) The court may, on the application of any person who is, as against the liquidator, entitled to the benefit or subject to the burden of a contract made with the company, make an order rescinding the contract on such terms as to payment by or to either party of damages for the non-performance of the contract, or otherwise as the court thinks just, and any damages payable under the order to any such person may be proved by him as a debt in the winding up.
(6) The court may, on an application by any person who either claims any interest in any disclaimed property or is under any liability not discharged by this Ordinance in respect of any disclaimed property and on hearing any such persons as it thinks fit, make an order for the vesting of the property in or the delivery of the property to any persons entitled thereto, or to whom it may seem just that the pro- perty should be delivered by way of compensation for such liability as aforesaid, or a trustee for him, and on such terms as the court thinks just, and on any such vesting order being made, the property comprised therein shall vest accordingly in the person therein named in that behalf without any conveyance or assignment for the purpose:
Provided that, where the property disclaimed is of a leasehold nature, the court shall not make a vesting order in favour of any person claiming under the company, whether as under-lessee or as mort- gagee by demise, including a chargee by way of legal
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