Section 321: Order under s. 320 in respect of leaseholds.

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part IX: Bankruptcy — Chapter IV: Administration by Trustee

The court shall not make an order under section 320 vesting property of a leasehold nature in any person, except on terms making that person—

subject to the same liabilities and obligations as the bankrupt was subject to under the lease on the day the bankruptcy application was made or (as the case may be) the bankruptcy petition was presented, or
if the court thinks fit, subject to the same liabilities and obligations as that person would be subject to if the lease had been assigned to him on that day.

For the purposes of an order under section 320 relating to only part of any property comprised in a lease, the requirements of subsection (1) apply as if the lease comprised only the property to which the order relates.

Where subsection (1) applies and a person declines to accept any order under section 320, that person shall be excluded from all interest in the property.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.