F1PART VWINDING UP OF COMPANIES REGISTERED UNDER THE COMPANIES ORDERS

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Amendments (Textual)

CHAPTER VIIIPROVISIONS OF GENERAL APPLICATION IN WINDING UP

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Powers of High Court (leaseholds)156

1

The High Court shall not make an order under Article 155 vesting property of a leasehold nature in any person claiming under the company as underlessee or mortgagee except on terms making that person—

a

subject to the same liabilities and obligations as the company was subject to under the lease at the commencement of the winding up, or

b

if the Court thinks fit, subject to the same liabilities and obligations as that person would be subject to if the lease had been assigned to him at the commencement of the winding up.

2

For the purposes of an order under Article 155 relating to only part of any property comprised in a lease, the requirements of paragraph (1) apply as if the lease comprised only the property to which the order relates.

3

Where paragraph (1) applies and no person claiming under the company as underlessee or mortgagee is willing to accept an order under Article 155 on the terms required by virtue of that paragraph, the High Court may, by order under that Article, vest the company's estate or interest in the property in any person who is liable (whether personally or in a representative capacity, and whether alone or jointly with the company) to perform the lessee's covenants in the lease.

4

An order of the High Court under paragraph (3) may vest that estate and interest in such a person freed and discharged from all estates, incumbrances and interests created by the company.

5

Where paragraph (1) applies and a person claiming under the company as underlessee or mortgagee declines to accept an order under Article 155, that person is excluded from all interest in the property.

6

Paragraph (3) of Article 153 shall apply for the purposes of this Article as it applies for the purposes of that Article.