Insolvency Act 1986, section 296

Appointment of trustee by Secretary of State

Part IX Bankruptcy

(1)F754At any time when the official receiver is the trustee of a bankrupt’s estate by virtue of any provision of this Chapter ... he may apply to the Secretary of State for the appointment of a person as trustee instead of the official receiver.

(2)On an application under subsection (1) the Secretary of State shall either make an appointment or decline to make one.

(3)F755Such an application may be made notwithstanding that the Secretary of State has declined to make an appointment either on a previous application under subsection (1) ... or under section 300(4) below.

(4)Where the trustee of a bankrupt’s estate has been appointed by the Secretary of State (whether under this section or otherwise), the trustee shall give notice to the bankrupt’s creditors of his appointment or, if the court so allows, shall advertise his appointment in accordance with the court’s directions.

(5)In that notice or advertisement the trustee shall [F756explain the procedure for establishing a creditors' committee under section 301.F756]

Cases considering section 296 3

C Plc v P & Anor

[2007] EWCA Civ 493 · 22 May 2007

The provision was described as compelling a bankrupt to deliver possession of the estate and relevant books, papers and records to the official receiver in the litigation considered by the court. (see para [30])

Mogens Alex Bastholm & Ors v Peveril Securities (Dalton Park Retail) Limited & Ors

[2023] EWHC 438 (Ch) · 3 March 2023

Applies the statutory basis on which the trustee in bankruptcy was appointed. The judgment then treats the trustee as the person in whom the bankrupt’s relevant contractual rights vested. (see para [31])

Barker v Baxendale-Walker

[2018] EWHC 2518 (Ch) · 1 August 2018

The court records that section 296 permits the Official Receiver to apply to the Secretary of State for appointment of a trustee instead of the Official Receiver. The Official Receiver’s willingness to use that mechanism supported the practical replacement of the Official Receiver. (see paras [8]-[11]; [20]-[24]; [41])

What each judgment says about section 296 is in the case-law panel in the full Act.

Amendments and notes

6 notes from legislation.gov.uk

Amendments

  1. F754Words in s. 296(1) 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. 7(a); S.I. 2016/1020, reg. 4(f)
  2. F755Words in s. 296(3) 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. 7(b); S.I. 2016/1020, reg. 4(f)
  3. F756Words in s. 296(5) substituted for s. 296(5)(a)(b) (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. 76; S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)

Modifications

  1. C997S. 296 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(c))
  2. C998S. 296 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(9), Sch. 4 Pt. II para. 12
  3. C999S. 296 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 13