SCHEDULE 4 Forfeiture Orders
Part IV Insolvency: United Kingdom Provisions
Protection of creditors against forfeiture
47
(1)
This paragraph applies where—
(a)
before or after a forfeiture order is made, the commencement of an insolvency occurs in qualifying insolvency proceedings,
(b)
an insolvency practitioner would, but for the forfeiture order, exercise a function in those proceedings in relation to property to which the forfeiture order applies, and
(c)
he gives written notice to the relevant officer of the matters referred to in paragraphs (a) and (b) before the end of the period of six months beginning with the making of the forfeiture order.
(2)
Sub-paragraph (3) shall apply to—
(a)
the property in relation to which the insolvency practitioner would, but for the forfeiture order, exercise a function as described in sub-paragraph (1)(b), and
(b)
the proceeds of sale of that property.
(3)
The property—
(a)
shall cease to be subject to the forfeiture order and any ancillary order, and
(b)
shall be dealt with in the insolvency proceedings as if the forfeiture order had never been made.
(4)
But—
(a)
the property to which sub-paragraph (3) applies is the balance remaining after the relevant officer has exercised his powers under paragraph 50(1), and
(b)
sub-paragraph (3) shall not take effect in respect of property in relation to which the relevant officer, or any person acting in pursuance of an ancillary order, has incurred obligations until those obligations have been discharged.
(5)
In this paragraph “the commencement of an insolvency” means—
(a)
the making of a bankruptcy order,
(b)
the award of sequestration,
(c)
in England and Wales or in Northern Ireland, in the case of the insolvent estate of a deceased person, the making of an insolvency administration order, or
(d)
in the case of a company, the passing of a resolution for its winding up, or where no such resolution has been passed, the making of an order by the court for the winding up of the company.