Section 588 of Insolvency Act CAP 53: Power of administrator to dispose of, and deal with, charged property: non-floating charge
(1) On the application of the administrator of a company, the Court may make an order enabling the administrator to dispose of property that is subject to a security as if it were not subject to the security.
(2) An order under subsection (1) may be made if the Court believes that disposal of the property would be likely to promote the purpose of the administration of the company.
(3) An order under this section is subject to the condition that—
(a) the net proceeds of disposal of the property; 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 property at market value,
will be applied towards discharging the amounts secured by the security.
(4) If an order under this section relates to more than one security, the administrator shall apply the net proceeds of disposal in the order of the priorities of the securities.
(5) Within fourteen days after the date on which an order is made under this section, the administrator shall lodge a copy of the order with the Registrar for registration.
(6) An administrator who, without reasonable excuse, fails to comply with subsection (5) commits an offence and on conviction is liable to a fine not exceeding two hundred shillings.
(7) If, after being convicted of an offence under subsection (6), the administrator continues to fail to lodge the required order with the Registrar, 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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