Section 311: Power to disclaim onerous property

311. Power to disclaim onerous property (1) Subject to section 312, the Official Receiver or a liquidator may disclaim onerous property even though the Official Receiver or liquidator has taken possession of it, tried to sell it, or otherwise exercised rights of ownership in relation to it. (2) A disclaimer under this section— (a) brings to an end on and from the date of the disclaimer the rights, interests and liabilities of the company in relation to the property disclaimed; but [Issue 3] I14 – 168 Revised Laws of Mauritius (b) does not, except so far as necessary to release the company from a liability, affect the rights or liabilities of any other person. (3) The Official Receiver or a liquidator who disclaims onerous property shall, within 28 days of the disclaimer, give notice in writing of the disclaimer to every person whose rights are, to the knowledge of the Official Receiver or liquidator, affected by the disclaimer. (4) A person suffering loss or damage as a result of a disclaimer under this section may— (a) claim as a creditor of the company for the amount of the loss or damage, taking account of the effect of an order made by the Court under subsection (4) (b); or (b) apply to the Court for an order that the disclaimed property be given to or vested in that person. (5) The Court may make an order under subsection (4) (b) where it is satisfied that it is just that the property should be vested in the applicant. (6) For the purposes of this section, “onerous property” means— (a) an unprofitable contract; or (b) property of a company which is unsaleable, or not readily saleable, or which may give rise to a liability to pay money or perform an onerous act.