Insolvency Act 1986, section 421

Insolvent estates of deceased persons

Part XV Subordinate Legislation

(1)The Lord Chancellor may, by order made with the concurrence of the Secretary of State [F1183and the Lord Chief JusticeF1183] , provide that such provisions of this Act as may be specified in the order shall apply [F1184in relationF1184] to the administration of the insolvent estates of deceased persons with such modifications as may be so specified.

[F1185 (1A)An order under this section may make provision in relation to the [F1186 EU RegulationF1186] .

(1B)But provision made by virtue of this section in relation to the [F1187 EU RegulationF1187] may not create [F1188 a new relevant offenceF1188] .F1185]

(2)An order under this section may make different provision for different cases and may contain such incidental, supplemental and transitional provisions as may appear to the Lord Chancellor [F1189and the Lord Chief JusticeF1189] necessary or expedient.

(3)An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(4)For the purposes of this section the estate of a deceased person is insolvent if, when realised, it will be insufficient to meet in full all the debts and other liabilities to which it is subject.

[F1190 (5)The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.F1190]

Definitions used in section 421 1

relevant offence

In this Part “relevant offence” means a criminal offence punishable with imprisonment for more than two years or punishable on summary conviction with imprisonment for more than three months or with a fine of more than level 5 on the standard scale (if not calculated on a daily basis) or with a fine of more than £100 a day.

Defined in s.422A · see it in the full Act

Cases considering section 421 4

K (deceased), Re

[2007] EWHC 622 (Ch) · 28 March 2007Interprets

The court considered the statutory power to modify insolvency provisions for insolvent deceased estates and the definition of insolvency. It left unresolved whether the potential creditors’ construction of the resulting regime was correct, but held that it had a real prospect of success (see paras [43]-[50]).

Lewis & Anor v Metropolitan Property Realisations Ltd

[2009] EWCA Civ 448 · 12 June 2009

The provision was considered as part of the Act’s usage of “realise” and its derivatives. Collectively, those usages generally indicated a completed conversion into distributable or usable cash (see para [17]).

Berti v Steele Raymond (A Firm)

[2001] EWCA Civ 2079 · 16 November 2001

Section 421 enabled provision to be made by statutory instrument for the Act to apply, with or without modification, to the administration of insolvent estates of deceased persons. The court used it to identify the statutory basis of the Administration Order.

What each judgment says about section 421 is in the case-law panel in the full Act.

Amendments and notes

9 notes from legislation.gov.uk

Amendments

  1. F1183Words in s. 421(1) inserted (3.4.2006) by Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 192(2); S.I. 2006/1014, art. 2(a), Sch. 1
  2. F1184Words in s. 421(1) inserted (2.4.2001) by 2000 c. 39, s. 12(2); S.I. 2001/766, art. 2 (subject to transitional provisions in art. 3)
  3. F1185S. 421(1A)(1B) inserted (3.5.2002) by S.I. 2002/1037, reg. 3(6)
  4. F1186Words in s. 421(1A) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 27 (with regs. 3, 4)
  5. F1187Words in s. 421(1B) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 27 (with regs. 3, 4)
  6. F1188Words in s. 421(1B) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 40 (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  7. F1189Words in s. 421(2) inserted (3.4.2006) by Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 192(3); S.I. 2006/1014, art. 2(a), Sch. 1
  8. F1190S. 421(5) inserted (3.4.2006) by Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 192(4); S.I. 2006/1014, art. 2(a), Sch. 1

Modifications

  1. C1223S. 421 amended (30.12.2002) by 2002 c. 29, s. 311(6); S.I. 2002/3015, art. 2, Sch. (subject to savings in art. 3)