The Insolvency (Northern Ireland) Order 1989

Preferential charge on goods distrained [F1 , etc] N.I.

150.—(1) This Article applies where a company is being wound up by the High Court, and is without prejudice to Article 108 (avoidance of sequestration or distress).

[F2 (2) Paragraph (2A) applies where—

(a) any person has distrained upon the goods or effects of the company, or

(b) Her Majesty's Revenue and Customs has been paid any amount from an account of the company under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by deduction from accounts),

within the 3 months immediately preceding the date of the winding-up order.

(2A) Where this paragraph applies—

(a) in a case within paragraph (2)(a), the goods or effects, or the proceeds of their sale, and

(b) in a case within paragraph (2)(b), the amount in question,

is charged for the benefit of the company with the preferential debts of the company to the extent that the company's property is for the time being insufficient for meeting those debts.]

(3) Where by virtue of a charge under paragraph [F3 (2A)] any person surrenders any goods or effects to a company or makes a payment to a company, that person ranks, in respect of the amount of the proceeds of sale of those goods or effects by the liquidator or (as the case may be) the amount of the payment, as a preferential creditor of the company, except as against so much of the company's property as is available for the payment of preferential creditors by virtue of the surrender or payment.

F1 Word in art. 150 heading inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 38(4)

F2 Art. 150(2)(2A) substituted for art. 150(2) (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 38(2)

F3 Word in art. 150(3) substituted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 38(3)