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Statutory Rules of Northern Ireland


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STATUTORY RULES OF NORTHERN IRELAND


2006 No. 22

INSOLVENCY

The Insolvency (2005 Order) (Transitional Provisions and Savings) Order (Northern Ireland) 2006

  Made 2nd February 2006 
  Coming into operation 27th March 2006 

The Department of Enterprise, Trade and Investment in exercise of the powers conferred on it by Article 29(1) and (2) of the Insolvency (Northern Ireland ) Order 2005[1] and of every other power enabling it in that behalf hereby makes the following Order:

Citation, commencement and interpretation
     1. —(1) This Order may be cited as the Insolvency (2005 Order) (Transitional Provisions and Savings) Order (Northern Ireland) 2006 and shall come into operation on 27 March 2006.

    (2) Expressions used in this Order which are used in the Insolvency (Northern Ireland) Order 1989[
2] shall have the same meaning as in that Order.

    (3) In Articles 3, 4 and 5 references to provisions of, and procedures under, the Insolvency (Northern Ireland) Order 1989 include references to those provisions and procedures as they are applied by or under the provisions of any statutory power.

    (4) In this Order—

Administration – transitional provisions
     2. —(1) In this Article "the former administration provisions" means the law relating to administration under Part III of the Insolvency (Northern Ireland) Order 1989 and paragraph 15 of Schedule 2 to the Criminal Justice (Northern Ireland) Order 1994[3] without the amendments and repeals made by the provisions of the 2005 Order mentioned in paragraph (2).

    (2) For the purposes of paragraph (1), the provisions of the 2005 Order are —

    (3) In any case where a petition for an administration order has been presented before the commencement date, the former administration provisions shall continue to apply.

    (4) The former administration provisions shall continue to apply insofar as it is necessary to give effect to—

Abolition of Crown Preference – transitional provisions
     3. —(1) This Article applies to a case where before the commencement date—

    (2) This Article also applies to a case where on or after the commencement date—

    (3) This Article also applies to a case where—

    (4) This Article also applies to a case where—

    (5) This Article also applies to a case where—

    (6) This Article also applies to a case where proposals for a voluntary arrangement under Part II of the Insolvency (Northern Ireland) Order 1989 are made (whether before or after the commencement date) by—

    (7) This Article also applies to a case in which a proposal for a voluntary arrangement under Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989 is made (whether before or after the commencement date) by a person who was adjudged bankrupt on a petition which was presented before the commencement date.

    (8) In a case to which this article applies—

shall have no effect.

Liquidator's powers
     4. The insertion of paragraph 3A into Schedule 2 to the Insolvency (Northern Ireland) Order 1989 by Article 8 of the 2005 Order (liquidator's powers) shall have no effect in relation to any proceedings of a kind mentioned in paragraph 3A which were commenced prior to the commencement date.

Powers of trustee in bankruptcy
    
5. The insertion of paragraph 2A into Schedule 3 to the Insolvency (Northern Ireland) Order 1989 by Article 19 of the 2005 Order (powers of trustee) shall have no effect in relation to any proceedings of a kind mentioned in paragraph 2A which were commenced prior to the commencement date.

Bankruptcy restrictions orders
    
6. Where the High Court is considering whether or not a bankruptcy restrictions order should be made pursuant to the provisions of Article 255A of and Schedule 2A to the Insolvency (Northern Ireland) Order 1989[17], it shall not take into account any conduct of the bankrupt before the commencement date.

Transitional provisions – old summary cases
     7. —(1) This Article applies to a bankruptcy (other than where the bankrupt has received his discharge) where a certificate of summary administration under Article 249 of the Insolvency (Northern Ireland) Order 1989 is in force on the commencement date.

    (2) In a case to which this Article applies Articles 249, 265(1), 266(1), 267(1), 270, 271, 273(5), 273(6) and 273(7), of the Insolvency (Northern Ireland) Order 1989 shall continue to have effect.

    (3) Where on or after the commencement date the court revokes a certificate of summary administration under Article 249(3) of the Insolvency (Northern Ireland) Order 1989 as it has effect by virtue of paragraph (2), the relevant period for the purposes of paragraph 4(1)(b) of Schedule 4 to the 2005 Order shall be the period specified in Article 253(1)(c) of the Insolvency (Northern Ireland) Order1989 as it had effect immediately prior to the commencement date.



Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on


2 February 2006

L.S.


Michael J Bohill
A senior officer of the Department of Enterprise, Trade and Investment


EXPLANATORY NOTE

(This note is not part of the Order)


The Insolvency (2005 Order) (Commencement No. 1) Order (Northern Ireland) 2006 (S.R. 2006 No. 21(C. 1)) brings the Insolvency (Northern Ireland) Order 2005 ("the 2005 Order") into operation on 27 March 2006. This Order makes transitional provisions and savings in connection with the coming into operation of the 2005 Order.

Article 2 of this Order contains transitional provisions in relation to cases where petitions for administration orders were presented prior to the commencement date. The old law will continue to apply to those cases. It also saves the operation of the old law for the purposes of giving effect to the Insolvent Partnerships Order (Northern Ireland) 1995, Regulation 5 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004 and the Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) (Northern Ireland) Order 2005.

Article 3 contains transitional provisions in relation to the abolition of preferential status for Crown debts. Broadly speaking preferential status will continue to apply in those cases which started before the commencement date. The provisions of Article 3 (and Articles 4 and 5) apply in cases where the provisions of the Insolvency (Northern Ireland) Order 1989 ("the 1989 Order") are applied to other situations, for example in relation to insolvent partnerships (see Article 1(3)).

Articles 4 and 5 make transitional provisions in relation to certain types of proceedings taken by liquidators and trustees in bankruptcy. Article 8 of the 2005 Order amends Schedule 2 to the 1989 Order so that proceedings under Articles 177, 178, 202, 203 or 367 can only be brought with sanction (usually from the creditors' committee). Similarly Article 19 of the 2005 Order amends Schedule 3 to the 1989 Order to provide that a trustee in bankruptcy can only bring proceedings under Articles 312, 313 or 367 with sanction (usually from the creditors' committee). Articles 4 and 5 provide that these amendments to the 1989 Order are not to affect any proceedings that are already on foot under the provisions of the 1989 Order mentioned above.

Article 6 provides that where the High Court is considering whether to make a bankruptcy restrictions order it cannot take into account any conduct of the bankrupt which occurred prior to the commencement date.

Article 7 contains transitional provisions in relation to existing bankruptcies in Northern Ireland where a certificate of summary administration was in force.


Notes:

[1] S.I. 2005/1455 (N.I. 10)back

[2] S.I. 1989/2405 (N.I. 19)back

[3] S.I.1994/2795 (N.I. 15)back

[4] S.R. 1995 No. 225back

[5] S.R. 2004 No. 307back

[6] S.I. 2005/1644back

[7] Schedule B1 to the Insolvency (Northern Ireland) Order 1989 was inserted by Article 3(2) of and Schedule 1 to the Insolvency (Northern Ireland) Order 2005 S.I. 2005/1455 (N.I. 10)back

[8] 1991 c. 31back

[9] 1992 c. 9back

[10] 1993 c. 34back

[11] 1994 c. 9back

[12] 1995 c. 4back

[13] 1996 c. 8back

[14] S.I 1996/1919 (N.I. 16)back

[15] 2000 c. 17back

[16] 2001 c. 9back

[17] Article 255A and Schedule 2A were inserted into the Insolvency (Northern Ireland) Order 1989 by Article 13 of the Insolvency (Northern Ireland) Order 2005back



ISBN 0 337 96331 2


 © Crown copyright 2006

Prepared 10 February 2006


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