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Section 689 of Insolvency Act CAP 53: Supply of utility services to companies in liquidation or under administration

    

(1) This section applies to a company—
(a) that is under administration or in liquidation; or
(b) in respect of which a moratorium or voluntary arrangement under Part IX has effect.
(2) In this section, "relevant officer-holder", in relation to a company in respect of which a moratorium or voluntary arrangement under Part IX has effect, means the supervisor or provisional supervisor.
(3) If, after the effective date, a request is made by or with the consent of the relevant office-holder for the supply to the company of any of the supplies specified in subsection (4), the supplier—
(a) may make it a condition of the supply that that office-holder personally guarantees the payment of any charges in respect of the supply; but
(b) may not make it a condition for the supply, or take any action that has the effect of making it a condition for making the supply, that any outstanding charges in respect of a supply made to the company before the effective date have to be paid.
(4) The supplies referred to in subsection (3) are—
(a) a supply of gas by a gas supplier;
(b) a supply of electricity by an electricity supplier;
(c) a supply of water by a water supplier; and
(d) a supply of communications services by a provider of a public telecommunication or electronic communications service.
(5) For the purposes of this section, "the effective date" is whichever of the following dates is applicable to the company—
(a) the date on which the company entered administration;
(b) the date on which the liquidation of the company commenced;
(c) the date on which the moratorium or voluntary arrangement took effect.

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Disclaimer: This document is not to be taken as legal advise.

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