Section 325:
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
325. Court may order recipient to pay value
(1) On the application of the Official Receiver or a liquidator, the Court
may order the recipient of a contribution by the debtor to the recipient’s
property to pay the value of the contribution to the Official Receiver or liquidator.
(2) The Court may make an order under subsection (1) where—
(a) the debtor was not paid an adequate amount in money or
money’s worth for the contribution;
(b) the value of the debtor’s assets was reduced by the contribution; and
(c) the debtor made the contribution—
(i) within 2 years immediately before the date of adjudication
or commencement of the winding up; or
(ii) within 5 years immediately before the date of adjudication
or commencement of the winding up and the recipient is
not able to prove that the debtor, either at the time of the
contribution or at any later time before the date of adjudication or commencement of the winding up, was able to
pay the debtor’s debts without the aid of the contribution.
I14 – 175 [Issue 3]
Insolvency Act
(3) For the purposes of this section and section 326, a debtor has made
a contribution to the recipient’s property where he has—
(a) erected buildings on, or otherwise improved, land or any other
property of the recipient;
(b) bought land or property in the recipient’s name;
(c) provided money to buy land or other property in the recipient’s
name or on the recipient’s behalf; or
(d) paid instalments for the purchase of, or towards the purchase
of, any land or any other property in the recipient’s name or on
the recipient’s behalf.