C1C2F1PART 1AMoratorium
Pts. 1-5 modified by S.R. 2004/307 (as amended (1.10.2006) by Limited Liability Partnerships (Amendment) Regulations (Northern Ireland) 2006 (S.R. 2006/377), reg. 3, Sch. 2; (temp.) (27.4.2020 retrospective) by virtue of Corporate Insolvency and Governance Act 2020 (c. 12), Sch. 11 para. 8(1)(2), 14 (with ss. 2(2), 5(2)); (26.6.2020) by The Limited Liability Partnerships (Amendment etc.) Regulations 2020 (S.I. 2020/643), reg. 1(1), Sch. 2 (with reg. 3); (16.2.2021) by The Limited Liability Partnerships (Amendment etc.) Regulations 2021 (S.I. 2021/60), reg. 1(1), Sch. 2 (with reg. 4(2)))
Pts. 1-5 applied (with modifications) (4.1.2024) by S.I. 2021/716, Sch. 1A para. 3 (as inserted by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), reg. 1(2), Sch. 1)
CHAPTER 4Effects of moratorium
Effect on creditors etc
Restrictions on enforcement and legal proceedings13DC
1
During a moratorium—
a
a landlord or other person to whom rent is payable may not exercise a right of forfeiture by peaceable re-entry in relation to premises let to the company, except with the permission of the High Court,
b
no steps may be taken to enforce any security over the company’s property except—
i
steps to enforce a collateral security charge (within the meaning of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979)),
ii
steps to enforce security created or otherwise arising under a financial collateral arrangement (within the meaning of regulation 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 (S.I. 2003/3226)), or
iii
steps taken with the permission of the High Court,
c
no steps may be taken to repossess goods in the company’s possession under any hire-purchase agreement, except with the permission of the High Court, and
d
no legal process (including legal proceedings, enforcement and distress) may be instituted, carried out or continued against the company or its property except—
i
employment tribunal proceedings or any legal process arising out of such proceedings,
ii
proceedings, not within paragraph (i), involving a claim between an employer and a worker, or
iii
a legal process instituted, carried out or continued with the permission of the High Court.
2
An application may not be made for permission under paragraph (1) for the purposes of enforcing a pre-moratorium debt for which the company has a payment holiday during the moratorium.
3
An application may not be made for permission under paragraph (1)(b), (c) or (d) with a view to obtaining—
a
the crystallisation of a floating charge, or
b
the imposition, by virtue of provision in an instrument creating a floating charge, of any restriction on the disposal of any property of the company.
4
Permission of the High Court under paragraph (1) may be given subject to conditions.
5
Paragraph (1)(b)(iii) is subject to Article 13DE(1).
6
In this Article—
“agency worker” has the meaning given by Article 15(2) of the Employment Relations (Northern Ireland) Order 1999;
“employer”—
- a
in relation to an agency worker, has the meaning given by Article 15(2) of the Employment Relations (Northern Ireland) Order 1999;
- b
otherwise, has the meaning given by Article 3(4) of the Employment Rights (Northern Ireland) Order 1996;
- a
“worker” means an individual who is—
- a
a worker within the meaning of Article 3(3) of the Employment Rights (Northern Ireland) Order 1996, or
- b
an agency worker.
- a
Pt. 1A inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), ss. 4(1), 49(1) (with ss. 2(2), 5(2))