72(1)The court may by order enable the administrator of a company to dispose of goods which are in the possession of the company under a hire-purchase agreement as if all the rights of the owner under the agreement were vested in the company.
(2)An order under sub-paragraph (1) may be made only—
(a)on the application of the administrator, and
(b)where the court thinks that disposal of the goods would be likely to promote the purpose of administration in respect of the company.
(3)An order under this paragraph is subject to the condition that there be applied towards discharging the sums payable under the hire-purchase agreement—
(a)the net proceeds of disposal of the goods, and
(b)any additional money required to be added to the net proceeds so as to produce the amount determined by the court as the net amount which would be realised on a sale of the goods at market value.
(4)An administrator who makes a successful application for an order under this paragraph shall send a copy of the order to the registrar of companies before the end of the period of 14 days starting with the date of the order.
(5)An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (4).
Cases considering Schedule B1, paragraph 72 3
[2014] EWHC 3540 (Ch) · 28 October 2014
Applies the jurisdiction to authorise disposal of goods in the company’s possession under a hire-purchase agreement, including a chattel leasing agreement. The statutory condition was not satisfied because the agreement did not give the company possession of the assets (see paras [5]–[8], [18]).
Applies the requirement that the goods must be in the company’s possession under a hire-purchase agreement before the court can authorise disposal. That requirement was not met on the assumed facts (see paras [6]–[8], [18]).
[2014] EWHC 3316 (Ch) · 13 October 2014Limits
Considers the court-application route for dealing with property subject to hire-purchase or retention-of-title arrangements. The availability of that route supported the conclusion that defeating the claimant’s rights was not necessary to further the administration. (see paras [59], [68], [275], [281])
[2008] EWHC 537 (Ch) · 19 March 2008Limits
Paragraph 72(1) permits the court to enable an administrator to dispose of goods held under a hire-purchase agreement as if the company had the owner’s rights. The provision gave the claimants a possible route to make a claim, but no separate application was made under it. (see paras [74]-[75])
Paragraph 72(2) limits an order under paragraph 72(1) to an application by the administrator where disposal would be likely to promote the purpose of administration. No such application was made. (see paras [74]-[75])
Paragraph 72(3) provides for application of sale proceeds and any additional money towards sums payable under the hire-purchase agreement. It was cited as part of the alternative statutory mechanism. (see para [74])
What each judgment says about Schedule B1, paragraph 72 is in the case-law panel in the full Act.