Insolvency Act 1986, section 299

Release of trustee

Part IX Bankruptcy

(1)Where the official receiver has ceased to be the trustee of a bankrupt’s estate and a person is appointed in his stead, the official receiver shall have his release with effect from the following time, that is to say—

(a)F771where that person is appointed by ... the bankrupt’s creditors or by the Secretary of State, the time at which the official receiver gives notice [F772under this paragraph to the prescribed personF772] that he has been replaced, and

(b)where that person is appointed by the court, such time as the court may determine.

(2)If the official receiver while he is the trustee gives notice to the Secretary of State that the administration of the bankrupt’s estate in accordance with Chapter IV of this Part is for practical purposes complete, he shall have his release with effect from such time as the Secretary of State may determine.

(3)A person other than the official receiver who has ceased to be the trustee shall have his release with effect from the following time, that is to say—

(a)in the [F773following casesF773] , the time at which notice is given to the [F774prescribed personF774] in accordance with the rules that that person has ceased to hold office [F775—

(i)the person has been removed from office by a decision of the bankrupt's creditors and the creditors have not decided against his release,

(ii)the person has died;F775]

[F776 (b)in the following cases, such time as the Secretary of State may, on an application by the person, determine—

(i)the person has been removed from office by a decision of the bankrupt's creditors and the creditors have decided against his release,

(ii)the person has been removed from office by the court or by the Secretary of State,

(iii)the person has vacated office under section 298(6);F776]

(c)in the case of a person who has resigned, such time as may be prescribed;

(d)in the case of a person who has vacated office under section 298(8)—

[F777 (i)if any of the bankrupt's creditors objected to the person's release before the end of the period for so objecting prescribed by the rules, such time as the Secretary of State may, on an application by that person, determine, and

(ii)otherwise, the time at which the person vacated office.F777]

[F778 (3A)Where the person is removed from office by a decision of the bankrupt's creditors, any decision of the bankrupt's creditors as to whether the person should have his release must be made by a creditors' decision procedure.F778]

(4)Where a bankruptcy order is annulled, the trustee at the time of the annulment has his release with effect from such time as the court may determine.

(5)Where the offical receiver or the trustee has his release under this section, he shall, with effect from the time specified in the preceeding provisions of this section, be discharged from all liability both in respect of acts or omissions of his in the administration of the estate and otherwise in relation to his conduct as trustee.

But nothing in this section prevents the exercise, in relation to a person who has had his release under this section, of the court’s powers under section 304.

Cases considering section 299 6

Oraki & Anor v Bramston & Anor

[2017] EWCA Civ 403 · 24 May 2017Limits

The court considered the statutory release of a trustee but left unresolved the extent to which release affects personal claims arising from the trustee’s conduct. (see paras [218]-[221]) The court held that the section 304 saving did not itself establish that all personal claims were barred after release. The broader effect of release on such claims was left unresolved. (see paras [218]-[221])

Joseph Ackerman v Michael Thomas Leeds & Ors

[2024] EWHC 1215 (Ch) · 22 May 2024Interprets

The provision was identified as the statutory basis for the former trustees’ release. Its general operation was considered alongside subsections 299(3) and 299(5). (see paras [66], [94]-[108]) The provision was applied procedurally to identify the former trustee’s release following a block transfer order. (see para [66]) The provision was applied to record the release of the remaining trustee after he delivered notice of his final report and vacated office. (see para [68]) The court interpreted the discharge from liability by reference to the statutory definition in section 382(4). It held that release did not prevent a properly interested person from seeking non-monetary relief under section 303, although substitution of the Official Receiver would be required. (see paras [94]-[108])

Birdi v Price & Anor

[2018] EWHC 2943 (Ch) · 30 November 2018Interprets

Interpreted as discharging a released trustee from liability for conduct as trustee, subject to the court’s powers under sections 304(1) and (2). The saving did not preserve a claim based on the defence in section 304(3). (see paras [84]; [98]-[104])

What each judgment says about section 299 is in the case-law panel in the full Act.

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F771Words in s. 299(1)(a) omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 78(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  2. F772Words in s. 299(1)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 24(2); S.I. 2016/191, art. 2 (with art. 3)
  3. F773Words in s. 299(3)(a) 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. 78(3)(a); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  4. F774Words in s. 299(3)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 24(3); S.I. 2016/191, art. 2 (with art. 3)
  5. F775Words in s. 299(3)(a) inserted (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. 78(3)(b); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  6. F776S. 299(3)(b) 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. 78(4); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  7. F777S. 299(3)(d)(i)(ii) 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. 78(5); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)
  8. F778S. 299(3A) inserted (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. 78(6); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e)

Modifications

  1. C1002Ss. 298–307 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. C1003S. 299 applied (with modifications) (1.12.1994) by S.I. 1994/2421, arts. 8(3)(9), 10(6), Sch. 4 Pt. II para. 22
  3. C1004S. 299 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 16