Part II Administration Orders
Making etc. of administration order
10 Effect of application.
(1)
During the period beginning with the presentation of a petition for an administration order and ending with the making of such an order or the dismissal of the petition—
(a)
no resolution may be passed or order made for the winding up of the company;
(b)
no steps may be taken to enforce any security over the company’s property, or to repossess goods in the company’s possession under any hire-purchase agreement, except with the leave of the court and subject to such terms as the court may impose; and
(c)
no other proceedings and no execution or other legal process may be commenced or continued, and no distress may be levied, against the company or its property except with the leave of the court and subject to such terms as aforesaid.
(2)
Nothing in subsection (1) requires the leave of the court—
(a)
for the presentation of a petition for the winding up of the company,
(b)
for the appointment of an administrative receiver of the company, or
(c)
for the carrying out by such a receiver (whenever appointed) of any of his functions.
(3)
Where—
(a)
a petition for an administration order is presented at a time when there is an administrative receiver of the company, and
(b)
the person by or on whose behalf the receiver was appointed has not consented to the making of the order,
the period mentioned in subsection (1) is deemed not begin unless and until that person so consents.
(4)
References in this section and the next to hire-purchase agreements include conditional sale agreements, chattel leasing agreements and retention of title agreements.
(5)
In the application of this section and the next to Scotland, references to execution being commenced or continued include references to diligence being carried out or continued, and references to distress being levied shall be omitted.