Social Security Act 1973

Section 93(1), (3), (5).

SCHEDULE 24 Priority of debts in cases of personal and company insolvency

1 (1) The relevant enactments relating to personal insolvency are the following—

(a) section 33 of the [1914 c. 59.] Bankruptcy Act 1914 ;

(b) section 118 of the [1913 c. 20.] Bankruptcy (Scotland) Act 1913 ; and

(c) the [1964 c. 32 (N.I.).] Preferential Payments (Bankruptcies and Arrangements) Act (Northern Ireland) 1964.

(2) For the operation of these enactments, "the relevant event" in section 93(2) is to be construed as follows—

(a) in England and Wales, it means the receiving order or death ;

(b) in Scotland, it means the award of sequestration or death, or the concourse of diligence for distribution of the estate of a party being notour bankrupt; and

(c) in Northern Ireland, it means the order of adjudication or the filing of the petition of arrangement, or the death.

2 (1) The relevant enactments relating to companies' winding-up are the following—

(a) section 319 of the [1948 c. 38.] Companies Act 1948 ; and

(b) section 287 of the [1960 c. 22 (N.I.).] Companies Act (Northern Ireland) 1960 ;

but no priority under these enactments is extended by section 93(1) where a company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company.

(2) For the operation of these enactments, " the relevant event" in section 93(2) is to be construed as follows—

(a) where the company is wound up compulsorily—

(i) if it had previously commenced to be wound up voluntarily, " the relevant event" means the passing of the winding-up resolution, and

(ii) otherwise, it means the appointment (or first appointment) of a provisional liquidator or, in the absence of such an appointment, the making of the winding-up order;

(b) in any other case, "the relevant event" means the passing of the winding-up resolution.

3 (1) The relevant enactments relating to the remedies of debenture holders and chargees are the following—

(a) section 94 of the Companies Act 1948 ;

(b) section 19 of the [1972 c. 67.] Companies (Floating Charges and Receivers) (Scotland) Act 1972 ; and

(c) section 92 of the Companies Act (Northern Ireland) 1960.

(2) For the operation of these enactments, " the relevant event" in section 93(2) is to be construed as follows—

(a) where a receiver is appointed on behalf of debenture holders or by or on the application of the holders of a floating charge, it means that appointment; and

(b) where possession of any property is taken by or on behalf of debenture holders or the holders of a floating charge, it means that taking of possession.