The Local Government Reorganisation (Property etc.) Order 1986

Transfer of rights and liabilities etc

9.—(1) All rights and liabilities in respect of any payment which was due and payable by or to an abolished council before 1st April 1986 shall vest in the appropriate residuary body.

(2) This paragraph applies to rights and liabilities arising wholly in connection with the ownership or occupation of any land which by virtue of the principal Act, of section 263 of the Highways Act 1980 or of this or any relevant order is vested in any body (“the relevant body”), including rights and liabilities in respect of a contract for the provision of services (whether by or for an abolished council) on, or the delivery of goods to, such land.

(3) Subject to the provisions of this article—

(a) all rights and liabilities to which paragraph (2) applies shall vest in the relevant body, or, where land forms part of a hereditament which is vested in more than one body, in those bodies jointly and severally; and

(b) all rights and liabilities arising in relation to any contract for goods and services to be provided by or to an abolished council (other than those to which article 5 or paragraph (2) applies) shall vest jointly and severally in all the local councils in the area of an abolished council.

(4) Subject to the provisions of this article, and of articles 5, 10, 14 and Schedule 2, all rights and liabilities arising in relation to any transaction—

(a) whereby an abolished council undertook any liability for the management, maintenance, repair or improvement of any property situated within its area which is vested in any other person, or any liability for a guarantee, indemnity, or financial assistance by way of grant or otherwise in respect of any such property, or

(b) undertaken by or for an abolished council in relation to the maintenance or repair of any length of highway,

shall vest in the local council, or, where the property is situated in the area of more than one such council, in those councils jointly and severally.

(5) Paragraph (4)(a) applies to a liability imposed by or under any statutory provision as it applies to a liability which is undertaken voluntarily.

(6) Anything done or omitted to be done by or in relation to an abolished council in respect of any such land or contract as is mentioned in this article shall have effect as if done or omitted by or in relation to the body to which rights and liabilities in respect of such land or such a contract are transferred, or, if there is more than one such body, by or in relation to those bodies jointly and severally.

(7) The appropriate residuary body may, if it thinks fit, make or receive any payment which by virtue of this or any relevant order would fall to be made or received by any other body; and where the right or liability is one within any description in paragraph (10), it may recover the amount paid from or, as the case may be, pass on the amount received to, that body.

(8) Where a residuary body makes any payment or enforces any claim in pursuance of the vesting in it of any right or liability such as is described in paragraph (1), that body may, where the right or liability is one within a description in paragraph (10)(a), or one which was acquired or incurred for or in connection with the purposes of statutory functions which on and after 1st April 1986 become functions of a body (“the successor body”) other than a local council, new authority or authority established under section 10 of the principal Act, recover the amount paid from or, as the case may be, pass on the amount received, to the Inner London Education Authority or, as the case may be, the appropriate successor body.

(9) In recovering any amount paid in pursuance of paragraph (7) or (8), the residuary body may also recover any costs reasonably attributable to that payment or that recovery.

(10) The descriptions of rights and liabilities referred to in paragraphs (7) and (8) are—

(a) all rights and liabilities acquired or incurred by the Greater London Council acting as the Inner London Education Authority;

(b) all other rights and liabilities vested other than in a local council, new authority, or authority established under section 10 of the principal Act; and

(c) all liabilities to which paragraph (2) applies, other than any liability to provide services or deliver goods.

(11) Where by virtue of this or any relevant order there are transferred to any body which is not a rating authority, a new authority or an authority established under section 10 of the principal Act any rights or liabilities in connection with a contract for the provision of goods or services by an abolished council on or after 1st April 1986, the appropriate residuary body may pay to or, as the case may be, recover from that body an amount equal to the difference between the totals of all sums paid and sums expended in respect of such a contract.

(12) In this article “contract” includes any enforceable undertaking.