H&K

SECRETARIAL PRACTICE
Disclaimer of 267.—(1) Where any part of the property of a company which
onerous property . . i y
in case of com-~ 1S being wound up consists of land of any tenure burdened with
og Mi up onerous covenants, of shares or stock in companies, of unprofitable
’ contracts, or of any other property that is unsaleable, or not readily
saleable, by reason of its binding the possessor thereof to the perform-
ance of any onerous act, or to the payment of any sum of money, the
liquidator of the company, notwithstanding that he has endeavoured
to sell or has taken possession of the property, or exercised any act of
ownership in relation thereto, may, with the leave of the court and
subject to the provisions of this section, by writing signed by him, at
any time within twelve months after the commencement of the
winding up or such extended period as may be allowed bv the court,
disclaim the property:

Provided that, where any such property has not come to the
knowledge of the liquidator within one month after the commence-
ment of the winding up, the power under this section of disclaiming
the property may be exercised at any time within twelve months
after he has become aware thereof or such extended period as may
be allowed by the court.

(2) The disclaimer shall operate to determine, as from the
date of disclaimer, the rights, interest, and liabilities of the company,
and the property of the company, in or in respect of the property
disclaimed, but shall not, except so far as is necessary for the purpose
of releasing the company and the property of the company from
liability, affect the rights or liabilities of any other person.

(3) The court, before or on granting leave to disclaim, may
require such notices to be given to persons interested, and impose
such terms as a condition of granting leave, and make such other order
in the matter as the court thinks just.

(4) The liquidator shall not be entitled to disclaim any property
under this section in any case where an application in writing has
been made to him by any persons interested in the property requiring
him to decide whether he will or will not disclaim, and the liquidator
has not, within a period of twenty-eight days after the receipt of the
application or such further period as may be allowed by the court,
given notice to the applicant that he intends to apply to the court for

leave to disclaim, and, in the case of a contract, if the liquidator,
after such an application as aforesaid, does not within the said period
or further period disclaim the contract. the companv shall be deemed
to have adopted it.

(5) The court may, on the application of any person who is, as
against the liquidator, entitled to the benefit or subject to the burden
of a contract made with the company, make an order rescinding the
contract on such terms as to payment by or to either party of
damages for the non-performance of the contract, or otherwise as the

court thinks just, and any damages payable under the order to any
such person may be proved by him as a debt in the winding up.

(6) The court may, on an application by any person who either
claims any interest in any disclaimed property or is under any liability
not discharged by this Act in respect of anv disclaimed property and