Insolvency Act 1986

[F1A21Restrictions on enforcement and legal proceedingsU.K.

(1)During a moratorium—

(a)a landlord or other person to whom rent is payable may not exercise a right of forfeiture by peaceable re-entry in relation to premises let to the company, except with the permission of the court,

(b)in Scotland, a landlord or other person to whom rent is payable may not exercise a right of irritancy in relation to premises let to the company, except with the permission of the court,

(c)no steps may be taken to enforce any security over the company’s property except—

(i)steps to enforce a collateral security charge (within the meaning of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979)),

(ii)steps to enforce security created or otherwise arising under a financial collateral arrangement (within the meaning of regulation 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226)), or

(iii)steps taken with the permission of the court,

(d)no steps may be taken to repossess goods in the company’s possession under any hire-purchase agreement, except with the permission of the court, and

(e)no legal process (including legal proceedings, execution, distress or diligence) may be instituted, carried out or continued against the company or its property except—

(i)employment tribunal proceedings or any legal process arising out of such proceedings,

(ii)proceedings, not within sub-paragraph (i), involving a claim between an employer and a worker, or

(iii)a legal process instituted, carried out or continued with the permission of the court.

(2)An application may not be made for permission under subsection (1) for the purposes of enforcing a pre-moratorium debt for which the company has a payment holiday during the moratorium.

(3)An application may not be made for permission under subsection (1)(c), (d) or (e) with a view to obtaining—

(a)the crystallisation of a floating charge, or

(b)the imposition, by virtue of provision in an instrument creating a floating charge, of any restriction on the disposal of any property of the company.

(4)Permission of the court under subsection (1) may be given subject to conditions.

(5)Subsection (1)(c)(iii) is subject to section A23(1).

(6)In this section—

• “agency worker” has the meaning given by section 13(2) of the Employment Relations Act 1999;

• “employer”—

  (a)

  in relation to an agency worker, has the meaning given by section 13(2) of the Employment Relations Act 1999;

  (b)

  otherwise, has the meaning given by section 230(4) of the Employment Rights Act 1996;

• “worker” means an individual who is—

  (a)

  a worker within the meaning of section 230(3) of the Employment Rights Act 1996, or

  (b)

  an agency worker.]