On 22/05/2013,
you requested for the version in force on 22/05/2013
incorporating all amendments published on or before 22/05/2013.
The closest version currently available is that of 18/04/2013.
227H.
—(1) The judicial manager of a company may dispose of or otherwise exercise his powers in relation to any property of the company which is subject to a security to which this subsection applies as if the property were not subject to the security.
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(2) Where, on application by the judicial manager of a company, the Court is satisfied that the disposal (with or without other assets) —
(a)
of any property of the company subject to a security to which this subsection applies; or
(b)
of any goods under a hire-purchase agreement, chattels leasing agreement or retention of title agreement,
would be likely to promote one or more of the purposes specified in the judicial management order, the Court may by order authorise the judicial manager to dispose of the property as if it were not subject to the security or to dispose of the goods as if all rights of the owner under the hire-purchase agreement, chattels leasing agreement or retention of title agreement were vested in the company.
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(3) Subsection (1) applies to any security which, as created, was a floating charge and subsection (2) applies to any other security.
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(4) Where any property is disposed of under subsection (1), the holder of the security shall have the same priority in respect of any property of the company directly or indirectly representing the property disposed of as he would have had in respect of the property subject to the security.
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(5) It shall be a condition of an order made under subsection (2) that the net proceeds of the disposal shall be applied towards discharging the sums secured by the security or payable under the hire-purchase agreement, chattels leasing agreement or retention of title agreement and where the net proceeds of the disposal are less than the sums secured by the security or payable under any of those agreements, the holder of the security or the owner of the goods, as the case may be, may prove on a winding up for any balance due to him.
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(6) Where a condition imposed in pursuance of subsection (5) relates to 2 or more securities, that condition shall require the net proceeds of the disposal to be applied towards discharging the sums secured by those securities in the order of their priorities.
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(7) (a) A copy of an order made under subsection (2) shall, within 14 days after the making of the order, be sent by the judicial manager to the Registrar.
(b)
Seven days’ notice of an application by the judicial manager to the Court to dispose of property subject to a security under subsection (2) shall be given to the holder of the security or to the owner of the goods which are subject to any of the agreements mentioned in that subsection and the holder or the owner, as the case may be, may oppose the disposal of the property.
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(8) If the judicial manager, without reasonable excuse, fails to comply with subsection (7), he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and also to a default penalty.
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(9) For the purposes of sections 227C and 227D and this section —
“chattels leasing agreement” means an agreement for the bailment of goods which is capable of subsisting for more than 3 months;
“hire-purchase agreement” means a hire-purchase agreement as defined in section 2 of the Hire-Purchase Act (Cap. 125);
“retention of title agreement” means an agreement for the sale of goods to a company, being an agreement —
(a)
which does not constitute a charge on the goods; but
(b)
under which, if the seller is not paid and the company is wound up, the seller will have priority over all other creditors of the company as respects the goods or any property representing the goods.
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(10) Nothing in this section shall be regarded as prejudicing an application to the Court under section 227R.
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