Section 589 of Insolvency Act CAP 53: Power of administrator to dispose of goods that are subject to credit purchase transaction
(1) The Court may make an order authorising the administrator of a company to dispose of goods that are in the possession of the company under a credit purchase transaction as if all the rights of the owner under the agreement were vested in the company.
(2) An order under subsection (1) may be made—
(a) only on the application of the administrator; and
(b) only if the Court believes that disposal of the goods would be likely to promote the purpose of administration of the company.
(3) An order under subsection (1) is subject to the condition that—
(a) the net proceeds of disposal of the goods; and
(b) any additional money required to be added to the net proceeds so as to produce the amount determined by the Court as the net amount that would be realised on a sale of the goods at market value,
will be applied towards discharging the amounts payable under the credit purchase transaction.
(4) Within fourteen days from and including the date of the order, an administrator who makes a successful application for an order under this section shall lodge a copy of the order with the Registrar for registration.
(5) An administrator who, without reasonable excuse, fails to comply with subsection (4) and on conviction is liable to a fine not exceeding two hundred thousand shillings.
(6) If, after being convicted of an offence under subsection (5), an administrator continues to fail to lodge the required copy, the administrator commits a further offence on each day on which the failure continues and on conviction is liable to a fine not exceeding twenty thousand shillings for each such offence.
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