CHAPTER VII - POWERS OF COURT IN
BANKRUPTCY
363. General control of court
(1) Every bankruptcy is under the general
control of the court and, subject to the
provisions in this Group of Parts, the court
has full power to decide all questions of
priorities and all other questions, whether
of law or fact, arising in any bankruptcy.
(2) Without prejudice to any other
provision in this Group of Parts, an
undischarged bankrupt or a discharged
bankrupt whose estate is still being
administered under Chapter IV of this Part
shall do all such things as he may be
directed to do by the court for the purposes
of his bankruptcy or, as the case may be,
the administration of that estate.
(3) The official receiver or the trustee
of a bankrupt's estate may at any time apply
to the court for a direction under
subsection (2).
(4) If any person without reasonable
excuse fails to comply with any obligation
imposed on him by subsection (2), he is
guilty of a contempt of court and liable to
be punished accordingly (in addition to any
other punishment to which he may be
subject).
364. Power of arrest
(1) In the cases specified in the next
subsection the court may cause a warrant to
be issued to a constable or prescribed
officer of the court -
(a) for the arrest of a debtor to
whom a bankruptcy petition relates or of
an undischarged bankrupt, or of a
discharged bankrupt whose estate is
still being administered under Chapter
IV of this Part, and
(b) for the seizure of any books,
papers, records, money or goods in
possession of a person arrested under
the warrant,
and may authorise a person arrested
under such a warrant to be kept in
custody, and anything seized under such
a warrant to be held, in accordance with
the rules, until such time as the court
may order.
(2) The powers conferred by subsection
(1) are exercisable in relation to a debtor
or undischarged or discharged bankrupt if,
at any time after the presentation of the
bankruptcy petition relating to him or the
making of the bankruptcy order against him,
it appears to the court -
(a) that there are reasonable grounds
for believing that he has absconded, or
is about to abscond, with a view to
avoiding or delaying the payment of any
of his debts or his appearance to a
bankruptcy petition or to avoiding,
delaying or disrupting any proceedings
in bankruptcy against him or any
examination of his affairs, or
(b) that he is about to remover his
goods with a view to preventing or
delaying possession being taken of them
by the official receiver or the trustee
of his estate, or
that there are reasonable grounds for
believing that he has concealed or
destroyed, or is about to conceal or
destroy, any of his goods or any books,
papers or records which might be of use
to his creditors in the course of his
bankruptcy or in connection with the
administration of his estate, or
(d) that he has, without the leave of
the official receiver or the trustee of
his estate, removed any goods in his
possession which exceed in value such
sum as may be prescribed for the purpose
of this paragraph, or
(e) that he has failed, without
reasonable excuse, to attend any
examination ordered by the court.
365. Seizure of bankrupt's
property
(1) At any time after a bankruptcy order
has been made, the court may, on the
application of the official receiver or the
trustee of the bankrupt's estate, issue a
warrant authorising the person to whom it is
directed to seize any property comprised in
the bankrupt's estate which is, or any
books, papers or records relating to the
bankrupt's estate or affairs which are, in
the possession or under the control of the
bankrupt or any other person who is required
to deliver the property, books, papers or
records to the official receiver or trustee.
(2) Any person executing a warrant under
this section may, for the purpose of seizing
any property comprised in the bankrupt's
estate or any books, papers or records
relating to the bankrupt's estate or
affairs, break open any premises where the
bankrupt or anything that may be seized
under the warrant is or is believed to be
and any receptacle of the bankrupt which
contains or is believed to contain anything
that may be so seized.
(3) If, after a bankruptcy order has been
made, the court is satisfied that any
property comprised in the bankrupt's estate
is, or any books, papers or records relating
to the bankrupt's estate or affairs are,
concealed in any premises not belonging to
him, it may issue a warrant authorising any
constable or prescribed officer of the court
to search those premises for the property,
books, papers or records.
(4) A warrant under subsection (3) shall
not be executed except in the prescribed
manner and in accordance with its terms.
366. Inquiry into bankrupt's
dealings and property
(1) At any time after a bankruptcy order
has been made the court may, on the
application of the official receiver or the
trustee of the bankrupt's estate, summon to
appear before it -
(a) the bankrupt or the bankrupt's
spouse or former spouse,
(b) any person known or believed to
have any property comprised in the
bankrupt's estate in his possession or
to be indebted to the bankrupt,
any person appearing to the court to
be able to give information concerning
the bankrupt or the bankrupt's dealings,
affairs or property.
The court may require any such person
as is mentioned in paragraph (b) or to
submit an affidavit to the court
containing an account of his dealings
with the bankrupt or to produce any
documents in his possession or under his
control relating to the bankrupt's
dealings, affairs or property.
(2) Without prejudice to section 364, the
following applies in a case where -
(a) a person without reasonable
excuse fails to appear before the court
when he is summoned to do so under this
section, or
(b) there are reasonable grounds for
believing that a person has absconded,
or is about to abscond, with a view to
avoiding his appearance before the court
under this section.
(3) The court may, for the purposes of
bringing that person and anything in his
possession before the court, cause a warrant
to be issued to a constable or prescribed
officer of the court -
(a) for the arrest of that person,
and
(b) for the seizure of any books,
papers, records, money or goods in that
person's possession.
(4) The court may authorise a person
arrested under such a warrant to be kept in
custody, and anything seized under such a
warrant be held, in accordance with the
rules, until that person is brought before
the court under the warrant or until such
other time as the court may order.
367. Court's enforcement powers
under section 366
(1) If it appears to the court, on
consideration of any evidence obtained under
section 366 or this section, that any person
has in his possession any property comprised
in the bankrupt's estate, the court may, on
the application of the official receiver or
the trustee of the bankrupt's estate, order
that person to deliver the whole or any part
of the property to the official receiver or
the trustee at such time, in such manner and
on such terms as the court thinks fit.
(2) If it appears to the court, on
consideration of any evidence obtained under
section 366 or this section, that any person
is indebted to the bankrupt, the court may,
on the application of the official receiver
or the trustee of the bankrupt's estate,
order that person to pay the official
receiver or trustee, at such time and in
such manner as the court may direct, the
whole or part of the amount due, whether in
full discharge of the debt or otherwise as
the court thinks fit.
(3) The court may, if it thinks fit,
order that any person who if within the
jurisdiction of the court be liable to be
summoned to appear before it under section
366 shall be examined in any part of the
united Kingdom where he may be for the time
being, or any place outside the United
Kingdom.
(4) Any person who appears or is brought
before the court, under section 366 or this
section may be examined on oath, either
orally or by interrogatories, concerning the
bankrupt or the bankrupt's dealings, affairs
and property.
368. Provision corresponding to
section 366, where interim receiver appointed
Sections 366 and 367 apply where an
interim receiver has been appointed under
section 286 as they apply where a bankruptcy
order has been made, as if -
(a) references to the official
receiver or the trustee were to the
interim receiver, and
(b) references to the bankrupt and to
his estate were (respectively) to the
debtor and his property.
369. Order for production of
documents by inland revenue
(1) For the purpose of an examination
under section 290 (public examination of
bankrupt) or proceedings under sections 366
to 368, the court may, on the application of
the official receiver or the trustee of the
bankrupt's estate, order an inland revenue
official to produce to the court -
(a) any return, account or accounts
submitted (whether before or after the
commencement of the bankruptcy) by the
bankrupt to any inland revenue official.
(b) any assessment or determination
made (whether before or after the
commencement of the bankruptcy) in
relation to the bankrupt by any inland
revenue official, or
any correspondence (whether before or
after the commencement of the
bankruptcy) between the bankrupt and any
inland revenue official.
(2) Where the court has made an order
under section (1) for the purposes if any
examination or proceedings, the court may,
at any time after the document to which the
order relates is produced to it, by order
authorise the disclosure of the document, or
of any part of its contents, to the official
receiver, the trustee of the bankrupt's
estate or the bankrupt's creditors.
(3) The court shall not address an order
under subsection (1) to the Inland Revenue
official unless it is satisfied that that
official is dealing, or has dealt, with the
affairs of the bankrupt.
(4) Where any document to which an order
under subsection (1) relates is not in the
possession of the official receiver to whom
the order is addressed, it is the duty of
that official to take all reasonable steps
to secure possession of it and, if he fails
to do so, to report the reasons for his
failure to the court.
(5) Where any document to which an order
under subsection (1) relates is in the
possession of an inland revenue official
other than the one to whom the order is
addressed, it is the duty of the official in
possession of the document, at the request
of the official to whom the order is
addressed, to deliver it to the official
making the request.
(6) In this section "inland revenue
official" means any inspector or collector
of taxes appointed by the Commissioners of
Inland Revenue or any person appointed by
the Commissioners to serve in any other
capacity.
(7) This section does not apply for the
purposes of an examination under sections
366 and 367 which takes place by virtue of
section 368 (interim receiver).
370. Power to appoint special
manager
(1) The court may, on an application
under this section, appoint any person to be
the special manager -
(a) of a bankrupt's estate, or
(b) of the business of an
undischarged bankrupt, or
of the property or business of a
debtor in whose case the official
receiver has been appointed interim
receiver under section 286.
(2) An application under this section may
be made by the official receiver or the
trustee of the bankrupt's estate in any case
where it appears to the official receiver or
trustee that the nature of the estate,
property or business, or the interests of
the creditors generally, require the
appointment of another person to manage the
estate, property or business.
(3) A special manager appointed under
this section has such powers as may be
entrusted to him by the court.
(4) The power of the court under
subsection (3) to entrust powers to a
special manager includes power to direct
that any provision in this Group of Parts
that has effect in relation to the official
receiver, interim receiver or trustee shall
have the like effect in relation to the
special manager for the purposes of the
carrying out by the special manager of any
of the functions of the official receiver,
interim receiver or trustee.
(5) A special manager appointed under
this section shall -
(a) give such security as may be
prescribed,
(b) prepare and keep such accounts as
may be prescribed, and
produce those accounts in accordance
with the rules to the Secretary of State
or to such other persons as may be
prescribed .
371. Re-direction of bankrupt's
letters, etc
(1) Where a bankruptcy has been made, the
court may from time to time, on the
application of the official receiver or the
trustee of the bankrupt's estate, order the
Post Office to re-direct and send or deliver
to the official receiver or trustee or
otherwise any postal packet (within the
meaning of the Post Office Act 1953) which
would otherwise be sent or delivered by them
to the bankrupt at such place or places as
may be specified by the order.
(2) An order under this section has
effect for such period, not exceeding 3
months, as may be specified in the order.
The above is the actual text of the
Insolvency Act 1986.
For more information please visit: Her
Majesty's Stationery Office.
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