Insolvency Act 1986 (c. 45)

The First Group of Parts Company Insolvency ; Companies Winding Up

PART VI Miscellaneous Provisions Applying to Companies Which are Insolvent or in Liquidation

Adjustment of prior transactions (administration and liquidation)

246 Unenforceability of liens on books, etc.

(1) This section applies in the case of a company where—

(a) an administration order is made in relation to the company, or

(b) the company goes into liquidation, or

(c) a provisional liquidator is appointed ;

and “the office-holder ” means the administrator, the liquidator or the provisional liquidator, as the case may be.

(2) Subject as follows, a lien or other right to retain possession of any of the books, papers or other records of the company is unenforceable to the extent that its enforcement would deny possession of any books, papers or other records to the officeholder.

(3) This does not apply to a lien on documents which give a title to property and are held as such.