Vesting of bankrupt’s estate in trustee
Part IX Bankruptcy
(1)The bankrupt’s estate shall vest in the trustee immediately on his appointment taking effect or, in the case of the official receiver, on his becoming trustee.
(2)Where any property which is, or is to be, comprised in the bankrupt’s estate vests in the trustee (whether under this section or under any other provision of this Part), it shall so vest without any conveyance, assignment or transfer.
The provision vests a bankrupt’s estate in the trustee personally. This explains why the trustee, unlike a company liquidator, becomes the relevant party upon adopting estate litigation (see paras [9]-[10]).
Together with sections 283 and 436, the provision causes the bankrupt’s estate to vest automatically in the trustee upon appointment. The statutory scheme remains subject to the judicially recognised exclusion of rights personal to the bankrupt. (See Lord Walker, opening paragraphs.)
The bankrupt’s estate vests automatically in the trustee. This explains the trustee’s control of vested claims, although the technical vesting analysis did not determine the meaning of the DISP time limit. (see paras [23]; [47]; [173])
112 more judgments, and what each says about section 306, are in the case-law panel in the full Act.