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Section 482 of Insolvency Act CAP 53: Duties of judicial enforcement officers charged with execution of writs and other processes involving companies in liquidation

    

(1) This section applies if—
(a) a company's goods are taken in execution; and
(b) before their sale or the completion of the execution (whether by the receipt or recovery of the full amount of the levy), notice is served on the judicial enforcement officer charged with execution of the writ or other process—
(i) that a provisional liquidator has been appointed;
(ii) that a liquidation order has been made; or
(iii) that a resolution for voluntary liquidation has been passed.
(2) If so required, the judicial enforcement officer concerned shall deliver the goods and any money seized or received in part satisfaction of the execution to the liquidator.
(3) However, the costs of execution are a first charge or security right on the goods or money so delivered, and the liquidator may sell the goods, or a sufficient part of them for the purpose of satisfying the charge or security right.
(4) If, under an execution in respect of a judgement for an amount exceeding fifty thousand shillings, a company's goods are sold or money is paid in order to avoid sale, the judicial enforcement shall deduct the costs of the execution from the proceeds of sale or the money paid and retain the balance for not less than fourteen days.
(5) If, within that period—
(a) notice is served on the judicial enforcement officer to the effect that— (i) an application for the liquidation of the company has been made; or
(ii) a meeting has been convened at which there is to be proposed a resolution for voluntary liquidation; and
(b) an order is made or a resolution passed, that officer shall pay the balance to the liquidator, who is entitled to retain it as against the execution creditor.
(6) The rights conferred by this section on the liquidator may be set aside by the Court in favour of the creditor to such extent and subject to such terms as the Court considers appropriate.
(7) The insolvency regulations may increase or reduce the amount specified in subparagraph (4).

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

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