Paragraph 84 Bankruptcy of defendant etc.

(1)

Where a person who holds realisable property is adjudged bankrupt–

(a)

property for the time being subject to a restraint order made before the order adjudging him bankrupt, and

(b)

any proceeds of property realised by virtue of section 77(8) or 80(5) or (6) above for the time being in the hands of a receiver appointed under section 77 or 80 above,

is excluded from the bankrupt’s estate for the purposes of Part IX of the Insolvency Act 1986.

(2)

Where a person has been adjudged bankrupt, the powers conferred on the High Court by sections 77 to 81 above or on a receiver so appointed shall not be exercised in relation to–

(a)

property for the time being comprised in the bankrupt’s estate for the purposes of that Part of that Act;

(b)

property in respect of which his trustee in bankruptcy may (without leave of court) serve a notice under section 307 or 308 or 308A of that Act (after-acquired property and tools, clothes, etc. exceeding value of reasonable replacement and certain tenancies); and

(c)

property which is to be applied for the benefit of creditors of the bankrupt by virtue of a condition imposed under section 280(2)(c) of that Act.

(3)

Nothing in that Act shall be taken as restricting, or enabling the restriction of, the exercise of those powers.

(4)

Subsection (2) above does not affect the enforcement of a charging order–

(a)

made before the order adjudging the person bankrupt; or

(b)

on property which was subject to a restraint order when the order adjudging him bankrupt was made.

(5)

Where, in the case of a debtor, an interim receiver stands appointed under section 286 of that Act and any property of the debtor is subject to a restraint order, the powers conferred on the receiver by virtue of that Act do not apply to property for the time being subject to the restraint order.

(6)

Where a person is adjudged bankrupt and has directly or indirectly made a gift caught by this Part of this Act–

(a)

no order shall be made under section 339 or 423 of that Act (avoidance of certain transactions) in respect of the making of the gift at any time when property of the person to whom the gift was made is subject to a restraint order or charging order; and

(b)

any order made under either of those sections after the discharge of the restraint or charging order shall take into account any realisation under this Part of this Act of property held by the person to whom the gift was made.

(7)

In any case in which a petition in bankruptcy was presented, or a receiving order or an adjudication in bankruptcy was made, before 29th December 1986 (the date on which the Insolvency Act 1986 came into force), subsection (2) above shall have effect as if–

(a)

for the reference to the bankrupt’s estate for the purposes of Part IX of the Insolvency Act 1986 there were substituted a reference to the property of the bankrupt for the purposes of the Bankruptcy Act 1914;

(b)

for the reference to section 280(2)(c) of the Act of 1986 there were substituted a reference to section 26(2) of that Act; and

(c)

subsection (2)(b) were omitted.