Schedule 1 SALE OF TRANSPORTERSI1

1.—(1) The sale of a transporter requires the leave of the court.

(2) The court is not to give its leave except on proof—

(a) that the penalty or charge is or was due;

(b) that the person liable to pay it or any connected expenses has failed to do so; and

(c) that the transporter which the Minister seeks leave to sell is liable to sale.

Notice of proposed sale

2. Before applying for leave to sell a transporter, the Minister must take such steps as may be prescribed—

(a) for bringing the proposed sale to the notice of persons whose interests may be affected by a decision of the court to grant leave; and

(b) for affording to any such person an opportunity of becoming a party to the proceedings if the Minister applies for leave.

2A. Where the owner of a transporter is a party to an application for leave to sell it, in determining whether to give leave the court shall consider—

(a) the extent of any hardship likely to be caused by sale,

(b) the extent (if any) to which the owner is responsible for the matters in respect of which the penalty notice was issued, and

(c) any other matter which appears to the court to be relevant (whether specific to the circumstances of the case or of a general nature).

4. Failure to comply with any requirement of paragraph 2 or 3 in respect of any sale—

(a) is actionable against the Minister at the suit of any person suffering loss in consequence of the sale; but

(b) after the sale has taken place, does not affect its validity.

5.—(1) Any proceeds of sale arising from a sale under section 37 must be applied—

(a) in making prescribed payments; and

(b) in accordance with such provision as to priority of payments as may be prescribed.

(2) The Order may, in particular, provide for proceeds of sale to be applied in payment—

(a) of customs or excise duty,

(b) of goods and services tax,

(c) of expenses incurred by the Minister,

(d) of any penalty which the court has found to be due,

(f) of any surplus to or among the person or persons whose interests in the transporter have been divested as a result of the sale,

but not necessarily in that order of priority.