Insolvency Act 1986, section 363

General control of court

Part IX Bankruptcy

(1)Every bankruptcy is under the general control of the court and, subject to the provisions in this Group of Parts, the court has full power to decide all questions of priorities and all other questions, whether of law or fact, arising in any bankruptcy.

(2)Without prejudice to any other provision in this Group of Parts, an undischarged bankrupt or a discharged bankrupt whose estate is still being administered under Chapter IV of this Part shall do all such things as he may be directed to do by the court for the purposes of his bankruptcy or, as the case may be, the administration of that estate.

(3)The official receiver or the trustee of a bankrupt’s estate may at any time apply to the court for a direction under subsection (2).

(4)If any person without reasonable excuse fails to comply with any obligation imposed on him by subsection (2), he is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which may be subject).

Cases considering section 363 31

Brook v Reed

[2011] EWCA Civ 331 · 25 March 2011Interprets

Even before an express rule was introduced, the section enabled a bankrupt to challenge a trustee’s remuneration. It was the relevant basis for the remuneration challenge in this case (see paras [14]; [69]).

Donaldson v O'Sullivan

[2008] EWCA Civ 879 · 30 July 2008

Confirms the court’s general control over bankruptcy and its power to decide questions arising in the bankruptcy. The provision supports a broad construction of the court’s powers. (see paras [17], [41]) Confirms that bankruptcy is under the general control of the court. The court may exercise wide powers for the insolvency process as a whole, although an express statutory restriction would require a different construction. (see paras [17], [38], [41])

Umbrella Care Limited v Khalid Usman Raja

[2024] EWHC 1973 (Ch) · 30 July 2024Interprets

Section 363 places every bankruptcy under the general control of the court and supports directions to a bankrupt for the insolvency process as a whole. The judgment applies it as an additional jurisdiction for a passport order where departure would materially prejudice the continuing bankruptcy administration (see paras [29]-[30]). Section 363(2) requires an undischarged bankrupt, or a discharged bankrupt whose estate remains under administration, to do what the court directs. The judgment treats that obligation as supporting directions not to leave the jurisdiction and to surrender a passport (see paras [29]-[30]).

11 more judgments, and what each says about section 363, are in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Modifications

  1. C1095Ss.363 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II