Insolvency Act 1986 s.252 – Interim order of court

(1)In the circumstances specified below, the court may in the case of a debtor (being an individual) make an interim order under this section.

(2)An interim order has the effect that, during the period for which it is in force—

(a)no bankruptcy petition relating to the debtor may be presented or proceeded with,

[^F569 (aa)no landlord or other person to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the debtor in respect of a failure by the debtor to comply with any term or condition of his tenancy of such premises, except with the leave of the court^F569] and

(b)no other proceedings, and no execution or other legal process, may be commenced or continued [^F570and no distress may be levied^F570] against the debtor or his property except with leave of the court.

Definitions used in section 252 1

the debtor: (2) In Schedule 6 “the debtor” means the company or the individual concerned.
Defined in s.386(2) · see it in the full Act

Cases considering section 252 12

Bramston v Haut

[2012] EWCA Civ 1637 · 14 December 2012Interprets

The court interpreted the interim-order power as permitting, in an appropriate case, modification of the bankruptcy regime so as to suspend automatic discharge while an individual voluntary arrangement is considered. (see paras [57]-[64])

Clarke v Coutts & Co (A Firm)

[2002] EWCA Civ 943 · 17 June 2002Interprets

Section 252(2) prohibits continuation of execution against the debtor or his property during an interim order unless the court grants leave. Making a charging order nisi absolute is such a continuation, and an order made without leave is liable to be set aside. (see under “(1) Was leave needed?”; under “2. Did the judge have a discretion whether to set aside the order?”)

Dewji v Banwaitt

[2013] EWHC 3746 (QB) · 29 November 2013Interprets

Interprets the interim-order moratorium as creating a discretion to permit execution while an IVA proposal is considered. The moratorium does not automatically require refusal of a charging order application; the court must assess the circumstances and the IVA’s underlying purpose (see paras [2]; [32]; [45]). Applies the leave requirement to execution and other legal process against the debtor or his property. Leave may be granted despite an interim order where the relevant assets are excluded from the IVA or other facts justify execution (see paras [2]; [39]; [45]-[54]).

Hall & Anor v Van Der Heiden[2010] EWHC 537 (TCC) · 15 March 2010
Hurst v Bennett & Ors[2001] EWCA Civ 1316 · 2 August 2001
Gertner & Anor v CFL Finance Ltd[2020] EWHC 1241 (Ch) · 22 May 2020
Davis & Anor v Price & Anor[2013] EWHC 323 (Ch) · 21 February 2013
Hall & Anor v Van Der Heiden (No 2)[2010] EWHC 586 (TCC) · 23 March 2010
Tradition (UK) Ltd v Ahmed & Ors[2008] EWHC 2946 (Ch) · 5 December 2008
El Ajou v Stern & Ors[2006] EWHC 3067 (Ch) · 1 December 2006

2 more judgments, and what each says about section 252, are in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

F569S. 252(2)(aa) inserted (1.1.2003) by 2000 c. 39, s. 3, Sch. 3 para. 2(a); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
F570Words in s. 252(2)(b) inserted (1.1.2003) by 2000 c. 39, s. 3, Sch. 3 para. 2(b); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)