C1 PART IXBANKRUPTCY
CHAPTER VEFFECT OF BANKRUPTCY ON CERTAIN RIGHTS, TRANSACTIONS, ETC.
Adjustment of prior transactions, etc.
Orders under Articles 312, 313315
1
Without prejudice to the generality of Article 312(2) or 313(2), an order under either of those Articles with respect to a transaction or preference entered into or given by an individual who is subsequently adjudged bankrupt may (subject as follows)—
a
require any property transferred as part of the transaction, or in connection with the giving of the preference, to be vested in the trustee of the bankrupt's estate as part of that estate;
b
require any property to be so vested if it represents in any person's hands the application either of the proceeds of sale of property so transferred or of money so transferred;
c
release or discharge (in whole or in part) any security given by the individual;
d
require any person to pay, in respect of benefits received by him from the individual, such sums to the trustee of his estate as the High Court may direct;
e
provide for any surety or guarantor whose obligations to any person were released or discharged (in whole or in part) under the transaction or by the giving of the preference to be under such new or revived obligations to that person as the Court thinks appropriate;
f
provide for security to be provided for the discharge of any obligation imposed by or arising under the order, for such an obligation to be charged on any property and for the security or charge to have the same priority as a security or charge released or discharged (in whole or in part) under the transaction or by the giving of the preference; and
g
provide for the extent to which any person whose property is vested by the order in the trustee of the bankrupt's estate, or on whom obligations are imposed by the order, is to be able to prove in the bankruptcy for debts or other liabilities which arose from, or were released or discharged (in whole or in part) under or by, the transaction or the giving of the preference.
2
An order under Article 312 or 313 may affect the property of, or impose any obligation on, any person whether or not he is the person with whom the individual in question entered into the transaction or, as the case may be, the person to whom the preference was given; but such an order—
a
shall not prejudice any interest in property which was acquired from a person other than that individual and was acquiredF1 in good faith and for value, or prejudice any interest deriving from such an interest, and
b
shall not require a person who received a benefit from the transaction or preferenceF1 in good faith and for value to pay a sum to the trustee of the bankrupt's estate, except where he was a party to the transaction or the payment is to be in respect of a preference given to that person at a time when he was a creditor of that individual.
F22A
Where a person has acquired an interest in property from a person other than the individual in question, or has received a benefit from the transaction or preference, and at the time of that acquisition or receipt—
a
he had notice of the relevant surrounding circumstances and of the relevant proceedings, or
b
he was an associate of, or was connected with, either the individual in question or the person with whom that individual entered into the transaction or to whom that individual gave the preference,
then, unless the contrary is shown, it shall be presumed for the purposes of sub‐paragraph (a) or (as the case may be) sub‐paragraph (b) of paragraph (2) that the interest was acquired or the benefit was received otherwise than in good faith.
3
Any sums required to be paid to the trustee in acordance with an order under Article 312 or 313 shall be comprised in the bankrupt's estate.
F34
For the purposes of paragraph (2A)(a), the relevant surrounding circumstances are (as the case may require)—
a
the fact that the individual in question entered into the transaction at an undervalue; or
b
the circumstances which amounted to the giving of the preference by the individual in question.
5
For the purposes of paragraph (2A)(a), a person has notice of the relevant proceedings if he has notice—
a
of the fact that the petition on which the individual in question is adjudged bankrupt has been presented; or
b
of the fact that the individual in question has been adjudged bankrupt.
6
Article 7 shall apply for the purposes of paragraph (2A)(b) as it applies for the purposes of F4Parts 1A to 7.
Pts. VIII-X (arts. 209-345) modified by Foyle Fisheries Act (Northern Ireland) 1952 (c. 5), s. 52K(2) (as inserted (prosp.) by Foyle and Carlingford Fisheries (Northern Ireland) Order 2007 (S.I. 2007/915 (N.I. 9)), arts. 1(3), 3(1) (with art. 32))