Insolvency Act 1986, section 263I

Debtors against whom an adjudicator may make a bankruptcy order

Part IX Bankruptcy

(1)An adjudicator has jurisdiction to determine a bankruptcy application only if—

(a)the centre of the debtor's main interests is in England and Wales, or

[F660 (ab)the centre of the debtor's main interests is in a member State (other than Denmark) and the debtor has an establishment in England and Wales, orF660]

(b)F661... the test in subsection (2) is met.

(2)The test is that—

(a)the debtor is domiciled in England and Wales, or

(b)at any time in the period of three years ending with the day on which the application is made to the adjudicator, the debtor—

(i)has been ordinarily resident, or has had a place of residence, in England and Wales, or

(ii)has carried on business in England and Wales.

(3)The reference in subsection (2) to the debtor carrying on business includes—

(a)the carrying on of business by a firm or partnership of which the debtor is a member, and

(b)the carrying on of business by an agent or manager for the debtor or for such a firm or partnership.

(4)In this section, references to the centre of the debtor's main interests have the same meaning as in Article 3 of the [F662 EU RegulationF662] .

[F663 (5) In this section “establishment” has the same meaning as in Article 2(10) of the EU Regulation. F663]

Definitions used in section 263I 2

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
articles

“articles”, in relation to a company (see section 18 of the Companies Act 2006 );

Defined in s.436(2) · see it in the full Act

Cases considering section 263I 6

Mobile Telecommunications Company KSCP v HRH Prince Hussam Bin Saud Bin Abdulaziz Al Saud

[2025] EWCA Civ 681 · 30 May 2025Interprets

The court confirmed that section 263 I is materially identical to section 265 so far as jurisdiction is concerned, and used the comparison to reject an interpretation based on wholly unexercised permission to occupy another person’s residence (see paras [35]-[37]). The court relied on the four alternative jurisdictional conditions in section 263 I(2) to confirm that domicile, ordinary residence and carrying on business connote substantiality and continuity, making the proposed construction effectively nugatory (see para [37]).

Dr Tanal Mohamed Sabbah v Barbel Christa Abela

[2024] EWHC 1790 (Ch) · 11 July 2024Interprets

Considers the analogous place-of-residence requirement discussed in the cited authority, while adopting the view that place of residence is fact-sensitive and does not require a debtor’s home to be in the jurisdiction. (see paras [22]-[23])

HRH Prince Hussam Bin Saud Bin Abdulaziz Al Saud v Mobile Telecommunications Company KSCP

[2024] EWHC 1724 (Ch) · 16 May 2024

Section 263I(2) was referred to as containing an identical place-of-residence provision, forming part of the authorities’ treatment of the statutory concept. (see para [24])

What each judgment says about section 263I is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F660S. 263I(1)(ab) inserted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 31(2)(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  2. F661Words in s. 263I(1)(b) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 31(2)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  3. F662Words in s. 263I(4) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 18 (with regs. 3, 4)
  4. F663S. 263I(5) inserted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 31(3) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)