Insolvency Act 1986

Hire-purchase propertyE+W+S

[F172(1)The court may by order enable the administrator of a company to dispose of goods which are in the possession of the company under a hire-purchase agreement as if all the rights of the owner under the agreement were vested in the company.

(2)An order under sub-paragraph (1) may be made only—

(a)on the application of the administrator, and

(b)where the court thinks that disposal of the goods would be likely to promote the purpose of administration in respect of the company.

(3)An order under this paragraph is subject to the condition that there be applied towards discharging the sums payable under the hire-purchase agreement—

(a)the net proceeds of disposal of the goods, and

(b)any additional money required to be added to the net proceeds so as to produce the amount determined by the court as the net amount which would be realised on a sale of the goods at market value.

(4)An administrator who makes a successful application for an order under this paragraph shall send a copy of the order to the registrar of companies before the end of the period of 14 days starting with the date of the order.

(5)An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (4).]