Insolvency Act 1985

Section 235.

SCHEDULE 8U.K. Consequential Amendments

The M1Bills of Sale Act (1878) Amendment Act 1882U.K.

1U.K.In section 11 of the Bills of Sale Act (1878) Amendment Act 1882 (local registration of bills of sale), for the words “the London bankruptcy district as defined by the Bankruptcy Act 1869” and the words “the said London bankruptcy district” there shall be substituted, in each case, the words “the London insolvency district”.

The M2Deeds of Arrangement Act 1914U.K.

2(1)The Deeds of Arrangement Act 1914 shall be amended as follows.U.K.

(2)In subsections (1) and (4) of section 3 (extension by court having jurisdiction in bankruptcy of period for assent and registration), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(3)In section 11 (security of trustee)—

(a)in subsection (1), for the words “in bankruptcy in” and the words “London bankruptcy district” there shall be substituted, respectively, the words “for the purposes of Part III of the Insolvency Act 1985 in relation to” and the words “London insolvency district”; and

(b)in subsection (2), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(4)In section 13(2) (default in transmission of accounts to Secretary of State), for the words from “and the judge” onwards there shall be substituted the words “and, in addition, shall be guilty of contempt of court and liable to be punished accordingly”.

(5)In section 14 (transmission of accounts to creditors), for the words from “the High Court” onwards there shall be substituted the words “he shall be guilty of contempt of court and liable to be punished accordingly”.

(6)In section 15(1) (audit of accounts in accordance with the M3Bankruptcy Act 1914), for the words “all the provisions of the Bankruptcy Act 1914” there shall be substituted the words “any rules made under section 207 of the Insolvency Act 1985”.

(7)In section 16 (payment of undistributed moneys into court), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(8)In section 19(1) (provisions for protection of trustees under void deeds), for the words “receiving order” there shall be substituted the words “bankruptcy order”.

(9)In section 23 (courts in which applications for enforcement of trusts to be made), for the words “in bankruptcy in” there shall be substituted the words “for the purposes of Part III of the Insolvency Act 1985 in relation to”.

(10)In section 30(1) (interpretation), for the words “the Bankruptcy Act 1914” there shall be substituted the words “the Insolvency Act 1985”.

The M4Settled Land Act 1925U.K.

3U.K.In section 103 of the Settled Land Act 1925 (legal estate in settled land not to vest in trustee in bankruptcy of estate owner), for the words from the beginning to “an” there shall be substituted the words “For the purposes of determining, where the estate owner of any settled land is bankrupt, whether the legal estate in the settled land is comprised in, or is capable of being claimed for, the bankrupt’s estate, the legal estate in the settled land shall be deemed not to vest in the”.

The M5Law of Property Act 1925U.K.

4U.K.In section 52(2)(b) of the Law of Property Act 1925 (exceptions from requirement that conveyances are to be by deed), for the words “section fifty-four of the M6Bankruptcy Act 1914” there shall be substituted the words “section 91 or 161 of the Insolvency Act 1985”.

The M7Land Registration Act 1925U.K.

5(1)The Land Registration Act 1925 shall be amended as follows.U.K.

(2)In section 42 (transmissions on bankruptcy of proprietor)—

(a)in subsection (1), for the words “part of the property of the bankrupt divisible amongst his creditors” there shall be substituted the words “comprised in the bankrupt’s estate”; and

(b)in subsection (2), for the words “section fifty-four of the Bankruptcy Act 1914” there shall be substituted the words “section 161 of the Insolvency Act 1985”.

(3)In section 61 (protection of creditors prior to registration of trustee in bankruptcy)—

(a)in subsection (3), for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”;

(b)in subsection (6)—

(i)for the words from “, notwithstanding” to “the disposition,” there shall be substituted the words “, notwithstanding that the person making the disposition is adjudged bankrupt,”; and

(ii)for the words “an available act of bankruptcy or of the receiving order or” there shall be substituted the words “the bankruptcy petition or the”;

(c)in subsection (7), for the words “a receiving order” there shall be substituted the words “a bankruptcy order”;

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(4)In section 62 (rules made as to certain details)—

(a)in paragraph (a), after the word “debtor”, in each place where it occurs, there shall be inserted the words “or bankrupt” and for the words “receiving order” there shall be substituted the words “bankruptcy order”; and

(b)in paragraph (b), for the words “receiving order” there shall be substituted the words “bankruptcy order”.

(5)(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

The M8Agricultural Credits Act 1928U.K.

6U.K.In section 7 of the Agricultural Credits Act 1928 (effect of floating charge), in paragraph (a)(i) of the proviso, for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”.

The Third Parties (Rights against Insurers) Act 1930U.K.

7(1)The Third Parties (Rights against Insurers) Act 1930 shall be amended as follows.U.K.

(2)In section 1 (rights of third parties against insurers on bankruptcy etc. of the insured)—

(a)in subsection (1)(b), after the words “winding-up order” there shall be inserted the words “or an administration order” and at the end there shall be inserted the words “or of a composition or scheme proposed for the purposes of Chapter II of Part II of the Insolvency Act 1985 being approved under that Chapter”;

(b)in subsection (2), for the words from “an order is made” to “law of bankruptcy” there shall be substituted the words “the estate of any person falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985” and for the words “the said Act” there shall be substituted the words “any such order”;

(c)in subsection (3), for the words from “making of an order” to “his estate” there shall be substituted the words “estate of any person falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

(3)In section 2 (duty to give necessary information to third parties)—

(a)in subsection (1)—

(i)for the words from “an order being made” to “estate of any person” there shall be substituted the words “the estate of any person falling to the administered in accordance with an order under section 228 of the Insolvency Act 1985”;

(ii)after the words “winding-up order” there shall be inserted the words “or an administration order”, and

(iii)after the word “liquidator” there shall be inserted the word “administrator,”;

and

(b)after that subsection there shall be inserted the following subsection—

“(1A)The reference in subsection (1) of this section to a trustee includes a reference to the supervisor of a composition or scheme proposed for the purposes of, and approved under, Chapter II of Part II or Chapter I of Part III of the Insolvency Act 1985.”

(4)In section 3 (settlement between insurers and insured)—

(a)after the words “winding-up order” there shall be inserted the words “or an administration order”;

(b)after the words “or winding up” there shall be inserted the words “or the day of the making of the administration order”; and

(c)after the word “commencement”, in the second place where it occurs, there shall be inserted the words “or day”.

(5)In section 4(b) (application to Scotland), for the words from “an order” to “law of bankruptcy” there shall be substituted the words “an estate falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

8U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

9U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

The M9Arbitration Act 1950U.K.

10U.K.In section 3(2) of the Arbitration Act 1950 (application to court with consent of committee of inspection in certain cases where party to arbitration agreement adjudged bankrupt), for the words “committee of inspection” there shall be substituted the words “committee established under section 148 of the Insolvency Act 1985”.

The M10Administration of Justice Act 1956U.K.

11U.K.In section 40 of the Administration of Justice Act 1956 (effect of registration of judgments of courts outside England and Wales)—

(a)the words “the Bankruptcy Act 1914” shall be omitted; and

(b)for the words “those Acts” there shall be substituted the words “the said Act of 1869”.

The M11Licensing Act 1964U.K.

12(1)The Licensing Act 1964 shall be amended as follows.U.K.

(2)For paragraph (c) of section 8(1) (justices’ licence to be transferred to trustee of licensee in the case of a bankruptcy or composition or scheme), there shall be substituted the following paragraph—

“(c) where the holder of the licence has been adjudged bankrupt, or a composition or scheme proposed by the holder of the licence has been approved under Chapter I of Part III of the Insolvency Act 1985, or a trustee has been appointed under a deed of arrangement within the meaning of the Deeds of Arrangement Act 1914 for the benefit of the creditors of the holder of the licence, to the trustee of the bankrupt’s estate or under the deed or the supervisor of the composition or scheme or the new tenant or occupier of the premises;”

(3)For subsection (5) of section 10 (protection orders where licensee dies or is adjudged bankrupt etc.) there shall be substituted the following subsection—

“(5)Where the holder of a justices’ licence has died or has been adjudged bankrupt, or a composition or scheme proposed by the holder of a justices’ licence has been approved under Chapter I of Part III of the Insolvency Act 1985, or a trustee has been appointed under a deed of arrangement within the meaning of the Deeds of Arrangement Act 1914 for the benefit of the creditors of the holder of a justices’ licence, the personal representatives or the person who is for the time being the trustee of the bankrupt’s estate or under the deed or the supervisor of the composition or scheme shall be in the same position as regards carrying on business under the licence as a person to whom a protection order has been validly granted on the date of the death, or, as the case may be, the date on which he became trustee or supervisor.”

The M12Law of Property (Joint Tenants) Act 1964U.K.

13U.K.In paragraph (b) of the proviso to section 1(1) of the Law of Property (Joint Tenants) Act 1964 (assumptions on sale of land by survivor of joint tenants), for the words “a receiving order in bankruptcy” there shall be substituted the words “a bankruptcy order”.

The M13General Rate Act 1967U.K.

14U.K.For subsection (2) of section 90 of the General Rate Act 1967 (period of disqualification for membership of local valuation panel by reason of bankruptcy) there shall be substituted the following subsection—

“(2)A disqualification attaching to a person by reason of subsection (1)(a) of this section shall cease—

(a)unless the bankruptcy order made against that person is previously annulled, on his discharge from bankruptcy; and

(b)if the bankruptcy order is so annulled, on the date of the annulment.”

The M14Medicines Act 1968U.K.

15U.K.In section 72(4) of the Medicines Act 1968 (which specifies the persons who may carry on the business of a pharmacist in the case of his death or disability), at the end there shall be inserted the words—

“; and in paragraph (b) above the reference to a trustee appointed under a composition, scheme or deed of arrangement includes a reference to the supervisor of a composition or scheme proposed for the purposes of, and approved under, Chapter I of Part III of the Insolvency Act 1985.”

The M15Transport Act 1968U.K.

F416U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The M16Insolvency Services (Accounting and Investment) Act 1970U.K.

17U.K.In section 4 of the Insolvency Services (Accounting and Investment) Act 1970 (payment of interest under section 660(5) of the 1985 Act), for the words from “section 660(5)” to “1948” there shall be substituted the words “rules made by virtue of paragraph 16 of schedule 5 to the Insolvency Act 1985.”

The M17Conveyancing and Feudal Reform (Scotland) Act 1970U.K.

18U.K.In schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 (the standard conditions of a security), in standard condition 9(2)(b), for the words from “or an order” to “1925” there shall be substituted the words “or his estate falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

The M18Superannuation Act 1972U.K.

19U.K.In section 5(2) of the Superannuation Act 1972 (rule that benefit is unassignable not to affect powers of court under section 51(2) of the M19Bankruptcy Act 1914)—

(a)for the words “section 51(2) of the Bankruptcy Act 1914” there shall be substituted the words “section 156 of the Insolvency Act 1985”; and

(b)for the words “the said section 51(2)” there shall be substituted the words “section 51(2) of the Bankruptcy Act 1914 or the said section 156”.

The M20Road Traffic Act 1972U.K.

20U.K.In section 150 of the Road Traffic Act 1972 (bankruptcy of insured or secured persons not to affect claims by third parties)—

(a)for paragraph (b) of subsection (1) there shall be substituted the following paragraph—

(b)in paragraph (c) of that subsection, after the words “winding-up order” there shall be inserted the words “or an administration order”;

(c)in subsection (2), for the words from “an order’s being made” to “include” there shall be substituted the words “a person’s estate falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985 shall have effect as”.

The M21Land Charges Act 1972U.K.

21(1)The Land Charges Act 1972 shall be amended as follows.U.K.

(2)In section 5(8) (unregistered bankruptcy petition not to bind purchaser in good faith, for money or money’s worth without notice of an available act of bankruptcy) the words “without notice of an available act of bankruptcy” shall be omitted.

(3)In section 6 (the register of writs and orders affecting land)—

(a)for paragraph (c) of subsection (1) there shall be substituted the following paragraph—

“(c) any bankruptcy order, whether or not the bankrupt’s estate is known to include land,”;

(b)in subsection (3), for the words “receiving order in bankruptcy” there shall be substituted the words “bankruptcy order”;

(c)for subsection (5) there shall be substituted the following subsection—

“(5)Subject to subsection (6) below, the title of a trustee in bankruptcy shall be void as against a purchaser of a legal estate in good faith for money or money’s worth unless the bankruptcy order is for the time being registered under this section.”; and

(d)in subsection (6), the words “without notice of an available act of bankruptcy” shall be omitted.

(4)In section 16(2) (general rules)—

(a)for the words “general rules under section 132 of the M22Bankruptcy Act 1914 for carrying into effect the objects of that Act” there shall be substituted the words “rules under section 207 of the Insolvency Act 1985”;

(b)for the words “a receiving order in bankruptcy” there shall be substituted the words “a bankruptcy order”; and

(c)for the words “by that Act” there shall be substituted the words “by Part III of that Act”.

The M23Local Government Act 1972U.K.

22U.K.For subsection (1) of section 81 of the Local Government Act 1972 (period of disqualification for membership of local authority by reason of bankruptcy) there shall be substituted the following subsection—

“(1)Where a person is disqualified under section 80 above by reason of having been adjudged bankrupt, the disqualification shall cease—

(a)unless the bankruptcy order made against that person is previously annulled, on his discharge from bankruptcy; and

(b)if the bankruptcy order is so annulled, on the date of the annulment.”

The M24Matrimonial Causes Act 1973U.K.

23U.K.In section 39 of the Matrimonial Causes Act 1973 (settlement etc. made in compliance with a property adjustment order may be avoided on bankruptcy of settlor), for the words from “a settlement of” onwards there shall be substituted the words “a transaction in respect of which an order may be made under section 174 of the Insolvency Act 1985 (transactions at an undervalue and preferences)”.

24U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

The M25Solicitors Act 1974U.K.

25U.K.In section 12(1)(i) of the Solicitors Act 1974 (application for a practising certificate by a person who has been adjudged bankrupt and has obtained his discharge), for the words “and having obtained his discharge” there shall be substituted the words “and discharged”.

The M26Social Security Pensions Act 1975U.K.

F626U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The M27Recess Elections Act 1975U.K.

27U.K.In section 1(2) of the Recess Elections Act 1975 (which defines certain expressions used in that Act), in the definition of “certificate of vacancy” for the words from “the relevant bankruptcy enactment” to the end of paragraph (b) there shall be substituted the words “section 214(6)(a) of the Insolvency Act 1985”.

The M28Insolvency Act 1976U.K.

F728E+W+S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The M29Land Drainage Act 1976U.K.

F829E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

The M30Employment Protection (Consolidation) Act 1978U.K.

31F10(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

F10(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

F10(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Banking Act 1979U.K.

32(1)The Banking Act 1979 shall be amended as follows.U.K.

(2)In section 6 (grounds for revocation of recognition or licence), in subsection (3)(d), for the words “a receiving order” there shall be substituted the words “a bankruptcy order”.

(3)In section 28 (payments to depositors when institution becomes insolvent)—

(a)in subsection (3) (meaning of “insolvent” in relation to a body corporate), after paragraph (b) there shall be inserted the words “or

(c)on the holding of a creditors’ meeting summoned under section 83 of the Insolvency Act 1985 (effect of insolvency on members’ voluntary winding up);”

(b)in subsection (4)(b) (meaning of “insolvent” in relation to a partnership), for the words “receiving order” there shall be substituted the words “bankruptcy order”;

(c)in subsection (6) (rights of Deposit Protection Board)—

(i)for sub-paragraph (ii) of paragraph (b) there shall be substituted the following sub-paragraph—

“(ii)to be a member of any committee established under section 148 of the Insolvency Act 1985;”;

(ii)for sub-paragraph (iv) of that paragraph there shall be substituted the following sub-paragraph—

“(iv)to be a member of a committee established for the purposes of Part XX or Part XXI of the Companies Act 1985 under section 590 of that Act or under section 74 or 75 of the Insolvency Act 1985 or of a committee of inspection appointed for the purposes of Part V or Part IX of the Companies Act (Northern Ireland) 1960”;

(iii)in the words after the said sub-paragraph (iv), for the words “committee of inspection” there shall be substituted the words “such a committee as is mentioned in paragraph (b)(ii) or (iv) above”;

(d)in paragraph (b) of subsection (7) (which refers to the person in whom property is vested where an adjudication of bankruptcy is annulled under section 21(2) of the M31Bankruptcy Act 1914), for the words from “subsection (2)” to the end of the paragraph there shall be substituted the words “section 116(4) of the Insolvency Act 1985, to any person in whom the property of the firm is vested under section 129(4) of that Act; or”.

(4)In section 31(7) (which refers to rules under section 663 of the Companies Act 1985 and to rules under section 132 of the Bankruptcy Act 1914)—

(a)in paragraph (a) (England and Wales), for the words from “section 663” to “1914” there shall be substituted the words “sections 106 and 207 of the Insolvency Act 1985”; and

(b)in paragraph (b) (Scotland), for the words “section 663 of the Companies Act 1985” there shall be substituted the words “the said section 106”.

The M32Estate Agents Act 1979U.K.

33U.K.In section 23(2) of the Estate Agents Act 1979 (prohibition on bankrupts engaging in estate agency work to cease on discharge), for paragraph (b) there shall be substituted the following paragraph—

The M33Public Passenger Vehicles Act 1981U.K.

34U.K.In section 19(3) of the Public Passenger Vehicles Act 1981 (holder of PSV operator’s licence to give notice of bankruptcy etc.), after the word “estate” there shall be inserted the words “or the making of an administration order under Chapter III of Part II of the Insolvency Act 1985 in relation to the holder”.

The M34Supreme Court Act 1981U.K.

35U.K.In section 40A of the Supreme Court Act 1981 (which relates to the deduction of the administrative and clerical expenses of garnishees), for the words “section 40 of the Bankruptcy Act 1914” there shall be substituted the words “section 179 of the Insolvency Act 1985”.

The M35Civil Jurisdiction and Judgments Act 1982U.K.

36U.K.After paragraph (b) of section 18(3) of the Civil Jurisdiction and Judgments Act 1982 (judgments to which provisions relating to the enforcement of judgments within the United Kingdom do not apply), there shall be inserted the following paragraph—

The M36Insurance Companies Act 1982U.K.

37(1)The Insurance Companies Act 1982 shall be amended as follows.U.K.

(2)In section 55(5) (creditors’ meetings etc. in winding up of company with long-term business), for the words “subsections (1) to (3) of section 540” there shall be substituted the words “subsection (3) of section 540”.

(3)In section 56 (continuation of long term business of insurance companies in liquidation)—

(a)in subsection (4), for the words “Section 556(3) of the Companies Act” and for the words “section 556 of the Companies Act” there shall be substituted, respectively, the words “Section 90(5) of the Insolvency Act 1985” and the words “section 90 of the said Act of 1985”;

(b)in subsection (7), for the words “committee of inspection” there shall be substituted the words “a specified committee”.

(4)In section 59 (winding-up rules)—

(a)in subsection (1), for the words “section 663 of the Companies Act” there shall be substituted the words “section 106 of the Insolvency Act 1985”; and

(b)in subsection (2), for the words “section 663 of the Companies Act” and the words “section 614 of, and schedule 19 to, the Companies Act” there shall be substituted, respectively, the words “section 106 of the Insolvency Act 1985” and the words “section 89 of, and schedule 4 to, the Insolvency Act 1985”.

The M37County Courts Act 1984U.K.

38(1)The County Courts Act 1984 shall be amended as follows.E+W+S

F13(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)In section 109(2) (which relates to the deduction of the administrative and clerical expenses of garnishees), for the words “section 40 of the Bankruptcy Act 1914” there shall be substituted the words “section 179 of the Insolvency Act 1985”.

The Housing Act 1985U.K.

39(1)The Housing Act 1985 shall be amended as follows.U.K.

(2)In paragraph 3(4) of schedule 18 (suspension of condition as to residence), for the words “is administered in bankruptcy under section 130 of the Bankruptcy Act 1914” there shall be substituted the words “falls to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

(3)In paragraph 5(3) of that schedule (conditions affecting house purchased by means of advance), for the words “being administered in bankruptcy under section 130 of the Bankruptcy Act 1914” there shall be substituted the words “falling to be administered in accordance with an order under section 228 of the Insolvency Act 1985”.

The M38Administration of Justice Act 1985U.K.

40U.K.In section 16(1)(g) of the Administration of Justice Act 1985 (conditional licences), for the words “and having obtained his discharge” there shall be substituted the words “and discharged”.