Insolvency Act · s 35

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35.
Effect of judicial management order
(1) On the making of a judicial management order —
(a) any receiver or receiver and manager shall vacate office;
and
(b) any application for the winding up of the company shall be dismissed.
(2) Where any receiver or receiver and manager has vacated office under subsection (1)(a) —
(a) his remuneration and any expenses properly incurred by him; and
(b) any indemnity to which he is entitled out of the assets of the company, shall be charged on and, subject to subsection (4), paid out of any property of the company which was in his custody or under his control at the time in priority to any security held by the person by or on whose behalf he was appointed.
(3) Neither a receiver nor a receiver and manager of a company who vacates office under subsection (1)(a) shall be required on or after so vacating office to take steps to comply with any duty imposed on him by section 30.
(4) During the period for which a judicial management order is in force —
(a) no resolution shall be passed or order made for the winding up of the company;
(b) no receiver and manager as described in section 32(5)(b)(ii)
of the company shall be appointed;

Insolvency 50
(c) no steps shall be taken to enforce any charge on or security over the property of the company or to repossess any goods in the company’s possession under any hire-purchase agreement, chattels leasing agreement or retention of title agreement except —
(i) with the consent of the judicial manager; or
(ii) with leave of the Court and subject to such conditions as the Court may impose;
(d) no other proceedings and no execution or other legal process shall be commenced or continued and no distress may be levied against the company or its property except —
(i) with the consent of the judicial manager; or
(ii) with leave of the Court and subject to such conditions as the Court may impose.

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s 35Effect of judicial management order

(1)

On the making of a judicial management order —

(a)

any receiver or receiver and manager shall vacate office;

and

(b)

any application for the winding up of the company shall be dismissed.

(2)

Where any receiver or receiver and manager has vacated office under subsection (1)(a) —

(a)

his remuneration and any expenses properly incurred by him; and

(b)

any indemnity to which he is entitled out of the assets of the company, shall be charged on and, subject to subsection (4), paid out of any property of the company which was in his custody or under his control at the time in priority to any security held by the person by or on whose behalf he was appointed.

(3)

Neither a receiver nor a receiver and manager of a company who vacates office under subsection (1)(a) shall be required on or after so vacating office to take steps to comply with any duty imposed on him by section 30.

(4)

During the period for which a judicial management order is in force —

(a)

no resolution shall be passed or order made for the winding up of the company;

(b)

no receiver and manager as described in section 32(5)(b)(ii)

of the company shall be appointed;

Insolvency 50

(c)

no steps shall be taken to enforce any charge on or security over the property of the company or to repossess any goods in the company’s possession under any hire-purchase agreement, chattels leasing agreement or retention of title agreement except —

(i)

with the consent of the judicial manager; or

(ii)

with leave of the Court and subject to such conditions as the Court may impose;

(d)

no other proceedings and no execution or other legal process shall be commenced or continued and no distress may be levied against the company or its property except —

(i)

with the consent of the judicial manager; or

(ii)

with leave of the Court and subject to such conditions as the Court may impose.