Section 476 of Insolvency Act CAP 53: Power of liquidator to disclaim onerous property
(1) The liquidator may, by the giving such notice as is prescribed by the insolvency regulations, disclaim any onerous property and may do so even if the liquidator has taken control of it, tries to sell it, or otherwise exercised rights of ownership in relation to it.
(2) The following is onerous property for the purposes of this section—
(a) an unprofitable contract;
(b) other property of the company that is unsalable or not readily saleable or is such that it may give rise to a liability to pay money or perform any other onerous act.
(3) A disclaimer under this section—
(a) operates so as to determine, as from the date of the disclaimer, the rights, interests and liabilities of the company in or in respect of the property disclaimed; but
(b) does not, except so far as is necessary for the purpose of releasing the company from any liability, affect the rights or liabilities of any other person.
(4) A notice of disclaimer may not be given under this section in respect of any property if—
(a) a person interested in the property has applied in writing to the liquidator, or a predecessor of the liquidator, requiring the liquidator or liquidator's predecessor to decide whether the property will be disclaimed or not; and
(b) thirty days from and including the date on which that application was made (or such extended period as the Court may allow) has expired without a notice of disclaimer having been given under this section in respect of the property.
(5) A person who has sustained loss or damage in consequence of the operation of a disclaimer under this section is a creditor of the company to the extent of the loss or damage and accordingly may prove for the loss or damage in the liquidation.
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(2) On being satisfied—
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(1) This section applies to a notice that is—
(a) served for the purposes of section 468(9); or
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(b) to achieve a better outcome for the company's creditors as a whole than...
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(b) by the holder of a floating charge under section 534; or (c) by...
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