Section 726 of Insolvency Act CAP 53: Supply of utility services to bankrupts and others

    

(1) In this section—
(a) "communications services" do not include electronic communications services to the extent that they are used to broadcast or otherwise transmit programme services; and
(b) "the relevant office-holder" means the Official Receiver, the bankruptcy trustee, the interim trustee or the supervisor of the voluntary arrangement, whichever is applicable.
(2) This section applies to a person if—
(a) a bankruptcy order is made in respect of the person, or an interim trustee is appointed in respect of a person's property;
(b) the person is a bankrupt and a deed of composition proposed by the person is approved under Division 24 of Part III; or
(c) a voluntary arrangement proposed by the person is approved under Division 1 of Part IV.
(3) For the purposes of this section, the effective date is—
(a) in the case of a person referred to in subsection (2)(a), the date of the order or appointment;
(b) in the case of a bankrupt referred to in subsection (2)(b), the date on which the deed is approved; and
(c) in the case of person referred to in subsection (2), the date on which the arrangement is approved.
(4) If, after the effective date, a complying request is made for the supply to a person or bankrupt referred to in subsection (2) of any of the supplies specified in subsection (6), the supplier—
(a) may make it a condition of the supply that the relevant office-holder personally guarantees payment for the supply; but
(b) may not make it a condition of the supply, or do anything that has the effect of making it a condition of the supply, that any outstanding amount due in respect of a supply made to the person or bankrupt before the relevant date is paid.
(5) For the purpose of subsection (4), a request is a complying request if it is made—
(a) by or with the agreement of the relevant office-holder; and
(b) for the purposes of a business that is or has been carried on—
(i) by the person or bankrupt;
(ii) by a partnership of which the person or bankrupt is or was a member; or
(iii) by an agent or manager for the person bankrupt, or for such a partnership.
(6) The supplies referred to in subsection (4) are— (a) a supply of electricity by an electricity supplier;
(b) a supply of water by a water supplier; and
(c) a supply of communications services by a provider of a public electronic communications service.


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

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