Section 276: Liability for debt

276. Liability for debt (1) An administrator is not liable for the debts of the company except as provided in this section. (2) An administrator is liable for debts that he incurs, in the performance or exercise, or purported performance or exercise, of any of his functions and powers as administrator, for— (a) the purpose of funding the company; (b) any services rendered; or (c) any property hired, leased or occupied. (3) Subsection (2) has effect notwithstanding any agreement to the contrary, but without prejudice to the administrator’s rights against the company or any other person. (4) An administrator is liable, to the extent specified in subsection (5), for the rent and other payments becoming due by the company under an agreement— (a) made before the administration began; and (b) relating to the use, possession or occupation of property by the company. (5) An administrator is liable for rent and other payments that accrue in the period— (a) beginning more than 7 days after the administration begins; and (b) throughout which— (i) the company continues to use or occupy, or be in possession of, the property; and (ii) the administration continues; and (c) ending on the earliest of the following— (i) the end of the administration; (ii) the giving of a notice under section 277; (iii) the appointment of a receiver of the property where an order is made under section 268 permitting a secured creditor or owner of property to enforce a charge or exercise rights in relation to property; (iv) the appointment of an agent by a secured creditor of the property, under the provisions of a charge over the property, to enter into possession or to assume control of the property where an order is made to that effect under section 268; or [Issue 3] I14 – 154 Revised Laws of Mauritius (v) where a secured creditor takes possession or assumes control of the property under the provisions of a charge over the property where an order is made to that effect under section 268. (6) An administrator shall not be deemed, because of subsection (5)— (a) to have adopted the agreement; or (b) to be liable under the agreement except as set out in subsection (5). (7) This section shall not affect the liability of the company for rent and other payments due under the agreement.