COMPANIES ACT, 1929

689

on hearing any such persons as it thinks fit, make an order for the
vesting of the property in or the delivery of the property to any
persons entitled thereto, or to whom it may seem just that the
property should be delivered by way of compensation for such
liability as aforesaid, or a trustee for him, and on such terms as the
court thinks just, and on any such vesting order being made, the
property comprised therein shall vest accordingly in the person
therein named in that behalf without any conveyance or assignment
for the purpose:

Provided that, where the property disclaimed is of a leasehold
nature, the court shall not make a vesting order in favour of any
person claiming under the company, whether as under-lessee or as
mortgagee by demise, including a chargee by way of legal mortgage,
except upon the terms of making that person—

(a) subject to the same liabilities and obligations as those to
which the company was subject under the lease in respect
of the preperty at the commencement of the winding-up; or
if the court thinks fit, subject only to the same liabilities and
obligations as if the lease had been assigned to that person
at that date;

and in either event (if the case so requires) as if the lease had comprised
only the property comprised in the vesting order, and any mortgagee
or under-lessee declining to accept a vesting order upon such terms
shall be excluded from all interest in and security upon the property,
and, if there is no person claiming under the company who is willing
to accept an order upon such terms, the court shall have power
to vest the estate and interest of the company in the property in any
person liable either personally or in a representative character, and
either alone or jointly with the company to perform the lessee’s
covenants in the lease, freed and discharged from all estates, incum-
brances and interests created therein by the company.

(7) Any person injured by the operation of a disclaimer under
this section shall be deemed to be a creditor of the company to the
amount of the injury, and may accordingly prove the amount as a
debt in the winding up.

(8) This section shall not apply in the case of a winding up in
Scotland.

(b)

268.—(1) Where a creditor has issued execution against the goods
or lands of a company or has attached any debt due to the company,
and the company is subsequently wound up, he shall not be entitled
to retain the benefit of the execution or attachment against the
liquidator in the winding up of the company unless he has completed
the execution for attachment against the liquidator in the winding
up of the company unless he has completed the execution or
attachment before the commencement of the winding up:

Provided that—
(a) where any creditor has had notice of a meeting having
been called at which a resolution for voluntary winding-
up is to be proposed, the date on which the creditor so

Restriction of
rights of creditor
1s to execution
or attachment in
case of company
being wound up
in England.