Insolvency Act 1986, section 287

Powers of interim receiver

Part IX Bankruptcy

(1)[F723 An interim receiver appointed under section 286F723] is the receiver and (subject to section 370 (special manager)) the manager of the [F724debtor's propertyF724] and is under a duty to act as such.

(2)The function of [F725an interimF725] receiver while acting as receiver or manager of the [F726debtor's propertyF726] under this section is to protect [F727the propertyF727] ; and for this purpose—

(a)he has the same powers as if he were a receiver or manager appointed by the High Court, and

(b)he is entitled to sell or otherwise dispose of any perishable goods comprised in [F727the propertyF727] and any other goods so comprised the value of which is likely to diminish if they are not disposed of.

(3)[F728 An interimF728] receiver while acting as receiver or manager [F729of the debtor's propertyF729] under this section—

(a)shall take all such steps as he thinks fit for protecting [F730the debtor's property,F730]

[F731 (b)is not required to do anything that involves his incurring expenditure, except in pursuance of directions given by—

(i)the Secretary of State, where the official receiver is the interim receiver, or

(ii)the court, in any other case,F731]

(c)may, if he thinks fit (and shall, if so directed by the court) at any time [F732seek a decision on a matter fromF732] the [F733debtor'sF733] creditors.

(4)Where—

[F734 (a)an interim receiver acting as receiver or manager of the debtor's property under this section seizes or disposes of any property which is not the debtor's property, andF734]

(b)at the time of the seizure or disposal the [F735interim receiverF735] believes, and has reasonable grounds for believing, that he is entitled (whether in pursuance of an order of the court or otherwise) to seize or dispose of that property,

the [F736interim receiver isF736] not to be liable to any person in respect of any loss or damage resulting from the seizure or disposal except in so far as that loss or damage is caused by his negligence; and he has a lien on the property, or the proceeds of its sale, for such of the expenses of the [F737interim receivershipF737] as were incurred in connection with the seizure or disposal.

F738(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 287 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 287 6

Pathania v Adedeji & Ors

[2014] EWCA Civ 681 · 21 May 2014Interprets

The bankruptcy order reflected the statutory distinction between the official receiver’s initial role as receiver and manager and the later vesting of the estate in a trustee. (see paras [5]; [52]) A bankruptcy order appoints the official receiver as receiver and manager pending vesting of the estate in a trustee. It does not itself transfer ownership of the bankrupt’s property. (see paras [4]; [52])

Michael v The Official Receiver

[2013] EWHC 4286 (Ch) · 31 July 2012

The provision was applied to hold that management of property in the bankrupt’s estate was in the hands of the Official Receiver, even though no trustee had yet been appointed. The tenancy allegation therefore remained legally material (see paras [43], [46]).

Trustee In Bankruptcy of Louise St John Poulton v Ministry of Justice

[2010] EWCA Civ 392 · 22 April 2010

The provision is mentioned to explain the official receiver’s rights and duties as receiver and manager before the estate vests in a trustee. (see para [73])

What each judgment says about section 287 is in the case-law panel in the full Act.

Amendments and notes

18 notes from legislation.gov.uk

Amendments

  1. F722S. 287 heading substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(2); S.I. 2016/1020, reg. 4(f)
  2. F723Words in s. 287(1) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(3)(a); S.I. 2016/1020, reg. 4(f)
  3. F724Words in s. 287(1) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(3)(b); S.I. 2016/1020, reg. 4(f)
  4. F725Words in s. 287(2) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(4)(a); S.I. 2016/1020, reg. 4(f)
  5. F726Words in s. 287(2) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(4)(b); S.I. 2016/1020, reg. 4(f)
  6. F727Words in s. 287(2) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(4)(c); S.I. 2016/1020, reg. 4(f)
  7. F728Words in s. 287(3) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(5)(a); S.I. 2016/1020, reg. 4(f)
  8. F729Words in s. 287(3) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(5)(b); S.I. 2016/1020, reg. 4(f)
  9. F730Words in s. 287(3)(a) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(5)(c); S.I. 2016/1020, reg. 4(f)
  10. F731S. 287(3)(b) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(5)(d); S.I. 2016/1020, reg. 4(f)
  11. F732Words in s. 287(3)(c) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 75; S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  12. F733Word in s. 287(3)(c) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(5)(e); S.I. 2016/1020, reg. 4(f)
  13. F734S. 287(4)(a) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(6)(a); S.I. 2016/1020, reg. 4(f)
  14. F735Words in s. 287(4)(b) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(6)(b); S.I. 2016/1020, reg. 4(f)
  15. F736Words in s. 287(4) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(6)(c); S.I. 2016/1020, reg. 4(f)
  16. F737Words in s. 287(4) substituted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(6)(d); S.I. 2016/1020, reg. 4(f)
  17. F738S. 287(5) omitted (6.4.2017 for E.W.) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 10 para. 3(7); S.I. 2016/1020, reg. 4(f)

Modifications

  1. C986S.287 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II