Insolvency Act 1986, section 183

Effect of execution or attachment (England and Wales)

Part IV Winding Up of Companies Registered under the Companies Acts

(1)Where a creditor has issued execution against the goods or land of a company or has attached any debt due to it, and the company is subsequently wound up, he is not entitled to retain the beneift of the execution or attachment against the liquidator unless he has completed the execution or attachment before the commencement of the winding up.

(2)However—

(a)if a creditor has had notice of a meeting having been called at which a resolution for voluntary winding up is to be proposed, the date on which he had notice is substituted, for the purpose of subsection (1), for the date of commencement of the winding up;

(b)a person who purchases in good faith under a sale by the [F390enforcement officer or other officer charged with the execution of the writF390] any goods of a company on which execution has been levied in all cases acquires a good title to them against the liquidator; and

(c)the rights conferred by subsection (1) on the liquidator may be set aside by the court in favour of the creditor to such extent and subject to such terms as the court thinks fit.

(3)For purposes of this Act—

(a)M10an execution against goods is completed by seizure and sale, or by making of a charging order under section 1 of the Charging Orders Act 1979;

(b)an attachment of a debt is completed by receipt of the debt; and

(c)an execution against land is completed by seizure, by the appointment of a receiver, or by the making of a charging order under section 1 of the Act above-mentioned.

(4) In this section “goods” includes all chattels personal; and [F391 “enforcement officer” means an individual who is authorised to act as an enforcement officer under the Courts Act2003 F391] .

[F392 (4A)For the purposes of this section, Her Majesty's Revenue and Customs is to be regarded as having attached a debt due to a company if it has taken action under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by deduction for accounts) as a result of which an amount standing to the credit of an account held by the company is—

(a)subject to arrangements made under paragraph 6(3) of that Schedule, or

(b)the subject of a deduction notice under paragraph 13 of that Schedule.F392]

(5)This section does not apply in the case of a winding up in Scotland.

Definitions used in section 183 3

the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act
attachment

(3) In subsection (1) “attachment” includes a hold notice or a deduction notice under Part 1 of Schedule 8 to the Finance ( No. 2) Act 2015 (enforcement by deduction from accounts) and, if subsection (1) has effect in relation to a deduction notice, it also has effect in relation to the hold notice to which the deduction notice relates (whenever the hold notice was given).

Defined in s.128(3) · see it in the full Act
a resolution for voluntary winding up

(2) In this Act the expression “a resolution for voluntary winding up” means a resolution passed under either of the paragraphs of subsection (1).

Defined in s.84(2) · see it in the full Act

Cases considering section 183 5

Nationwide Building Society v Wright & Anor

[2009] EWCA Civ 811 · 29 July 2009Interprets

Section 183(1) parallels section 346(1) for corporate insolvency, but operates from a different commencement date. The court used the contrast to explain why corporate authorities do not govern the present bankruptcy. (See paras [17]; [24].)

Clarke v Coutts & Co (A Firm)

[2002] EWCA Civ 943 · 17 June 2002Interprets

Section 183(1) was considered by analogy with section 346(1) in relation to completion of execution in company insolvency. Its operation was read consistently with the finality reasoning in Roberts. (see under “(1) Was leave needed?”) Section 183(3) was construed consistently with Roberts: a charging order nisi does not complete execution where it remains defeasible and lacks finality. (see under “(1) Was leave needed?”)

Société Eram Shipping Company Limited (Respondents) and others v. Hong Kong and Shanghai Banking Corp Ltd (Appellants)

[2003] UKHL 30 · 12 June 2003Interprets

Lord Millett explained that execution against a debt is completed when the debt is received. A foreign order which failed to discharge the third party’s debt could therefore leave recoupment exposed merely as a proof in bankruptcy, confirming why restitution was inadequate (see paras [96]; [112]).

What each judgment says about section 183 is in the case-law panel in the full Act.

Amendments and notes

6 notes from legislation.gov.uk

Amendments

  1. F390Words in s. 183(2)(b) substituted (15.3.2004) by Courts Act 2003 (c. 39), ss. 109(1), 110, Sch. 8 para. 295(2); S.I. 2004/401, art. 2 (with art. 3)
  2. F391Words in s. 183(4) substituted (15.3.2004) by Courts Act 2003 (c. 39), ss. 109(1), 110, Sch. 8 para. 295(3); S.I. 2004/401, art. 2 (with art. 3)
  3. F392S. 183(4A) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 31

Modifications

  1. C555S. 183 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2
  2. C556S. 183 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37, Sch. 1 para. 3 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)

Marginal citations

  1. M101979 c. 53.