193437-1932-Supplementary-Draft-Bill--Companies — Page 99

1110

P

Restriction of rights

of creditor as to execution

or attach- ment in case of

company

being wound

up.

19 & 20 Geo. 5, c. 23,

9. 268,

Ordinance No. 3 of 1901, ss. 401 and 406.

Duties of

bailiff as to goods taken in execution. 19 & 20 Geo. 5, c. 23,

s. 269.

mortgage, except upon the terms of making that

person-

(a) subject to the same liabilities and obligations as those to which the company was subject under the lease in respect of the property at the commencement of the winding-up; or (b) if the court thinks fit, subject only to the same liabilities and obligations as if the lease had been assigned to that person at that date;

and in either event (if the case so requires) as if the lease had comprised only the property comprised in the vesting order, and any mortgagee or under-lessee declining to accept a vesting order upon such terms shall be excluded from all interest in and security upon the property, and, if there is no person claiming under the company who is willing to accept an order upon such terms, the court shall have power to vest the estate and interest of the company in the property in any person liable either personally or in a repre- sentative character, and either alone or jointly with the company to perform the lessee's covenants in the lease, freed and discharged from all estates, in- cumbrances and interests created therein by the company.

(7) Any person injured by the operation of a dis- claimer under this section shall be deemed to be a creditor of the company to the amount of the injury, and may accordingly prove the amount as a debt in the winding up.

be

255.-(1) Where a creditor has issued execution against the goods or lands of a company or has attached any debt due to the company, and the com- pany is subsequently wound up, he shall not entitled to retain the benefit of the execution or attachment against the liquidator in the winding up of the company unless he has completed the execu- tion or attachment before the commencement of the winding up:

Provided that-

(a) where any creditor has had notice of a meet- ing having been called at which a resolution for voluntary winding-up is to be proposed, the date on which the creditor so had notice shall for the purposes of the foregoing provi- sion be substituted for the date of the com- mencement of the winding up; and

(b) a person who purchases in good faith under a sale by the bailiff any goods of a company on which an execution has been levied shall in all cases acquire a good title to them against the liquidator.

(2) For the purposes of this section, an execution against goods shall be taken to be completed by seizure and sale, and an attachment of a debt shall be deemed to be completed by receipt of the debt, and an execution against land shall be deemed to be com- pleted by registration of the prohibitory order in the Land Office, and in the case of an equitable interest, by the appointment of a receiver.

(3) In this section the expression "goods" includes all chattels personal, and the expression "bailiff” includes any officer charged with the execution of a writ or other process.

256.-(1) Where any goods of a company are taken in execution, and, before the sale thereof or the completion of the execution by the receipt or recovery of the full amount of the levy, notice is served on the bailiff that a provisional liquidator has been appointed or that a winding-up order has been made or that a resolution for voluntary winding up has been passed,