Disclaimer of onerous property allows a liquidator, with tribunal leave, to renounce burdensome assets and shift claims to creditors. Section 333 authorises the company liquidator, with Tribunal leave and within a limited post-commencement period (subject to extension and late-discovery rules), to disclaim onerous or unsaleable property and unprofitable contracts by written notice. The disclaimer terminates the company's rights, interests and liabilities in that property as against the company, while preserving third-party rights as necessary. The Tribunal may impose notice requirements and terms, rescind contracts with provable damages, and make vesting orders delivering disclaimed property to entitled persons or trustees on just terms; affected persons are deemed creditors for compensation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Disclaimer of onerous property allows a liquidator, with tribunal leave, to renounce burdensome assets and shift claims to creditors.
Section 333 authorises the company liquidator, with Tribunal leave and within a limited post-commencement period (subject to extension and late-discovery rules), to disclaim onerous or unsaleable property and unprofitable contracts by written notice. The disclaimer terminates the company's rights, interests and liabilities in that property as against the company, while preserving third-party rights as necessary. The Tribunal may impose notice requirements and terms, rescind contracts with provable damages, and make vesting orders delivering disclaimed property to entitled persons or trustees on just terms; affected persons are deemed creditors for compensation.
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