Proceedings / Effects of Registration

Can judicial decisions opening insolvency proceedings be registered in the Land registry in accordance with your legislation?

If affirmative, what effects do these registrations produce?

Question 1.

Bankruptcy inhibitions

When a bankruptcy petition is presented against a registered owner, the Bankruptcy Office should lodge a notice of petition for registration to the Registry where they are aware of any property owned.

When, subsequently, a bankruptcy order is made, the Official Receiver or Trustee in Bankruptcy should lodge a notice in Precedent 19.C – Notice of bankruptcy order in accordance with Rule 155 of Land Registration Rules (Northern Ireland) 1994. Upon receipt of this notice the Registrar will enter a bankruptcy inhibition on the folio to protect the rights of creditors.

1.    Registrar’s Practice Direction 1/2013 – Applications regarding a bankrupt registered owner. A bankruptcy inhibition may be cancelled, in accordance with Rule 156:

•    on the registration of the Official Receiver or a Trustee in Bankruptcy as owner
•    on lodgement of a court order directing its cancellation, or
•    upon production of such other evidence, which should include an affidavit by the alleged bankrupt exhibiting any relevant documentation, as shall satisfy the Registrar that the bankruptcy inhibition may be cancelled (it is difficult to envisage that the Registrar would be satisfied by any evidence other than a court order).

Vesting of a bankrupt’s estate in registered land

The Official Receiver may be registered in place of a bankrupt, in accordance with Rule 157, upon lodgement of:

•    an official certified copy of the Bankruptcy Order and
•    a certificate along the lines of Precedent 19.D – Vesting in the Official Receiver / Trustee in Bankruptcy

A Trustee in Bankruptcy may be registered in place of the bankrupt, or in place of the Official Receiver, on the production of the documents mentioned above together with evidence of his appointment. Such evidence should be a certified copy of his certificate of appointment or of the court order appointing him (Rules 158 and 159).

Anyone seeking to be registered as owner of land which has been disclaimed by the Official Receiver, or by a Trustee in Bankruptcy, should produce a certified copy of any court order whereby the land became vested in him (see Article 293 of the Insolvency (NI) Order 1989).

Bankrupt’s rights of occupation

An application under Rule 162 for registration of a charge in respect of rights of occupation under Article 310 of the Insolvency (NI) Order 1989 should be in Precedent 19.E – Application for the registration of a Bankrupt’s right of occupation as a burden and be accompanied by:

•    a certified copy of the bankruptcy order
•    birth certificates of any relevant persons under the age of 18, and
•    any relevant release, disclaimer, postponement or court order

Companies

Rule 166 provides that, where an administration order has been made against a company which is the registered owner of land, the administrator may apply for the order to be noted in the Registry, upon production of a certified copy of the order, together with the LR form 100 and the appropriate fee.

A liquidator of a company may similarly apply for the entry of a note of the liquidation, upon production of a certified copy of the relevant order, appointment or resolution, together with the LR form 100 and the appropriate fee.

Links with Insolvency Service

There are currently no links with the Insolvency Service to check Bankruptcy proceedings that are ongoing. All applications are made by the Insolvency Service or the appointed trustee in bankruptcy. The applications are their responsibility.

Question 2.

Land Registration Rules (Northern Ireland) 1994. Rule 155 states.

A bankruptcy inhibition shall be entered on the title register in the following form-«Bankruptcy inhibition in pursuance of a bankruptcy order against …. (insert name, address and description of bankrupt) made by the High Court (Record No…). Dealings with the land herein are inhibited as provided in section 67A(5) of the Land Registration Act (Northern Ireland) 1970. «.

This is to say that,

Section 67A of the Land Registration Act (Northern Ireland) 1970 (5) From and after the entry of a bankruptcy inhibition (but without prejudice to dealings with or in right of interests having priority over the estate of the bankrupt owner), no dealing affecting the land of the registered owner, other than the registration of the trustee in bankruptcy, shall be entered on the title register until the inhibition is cancelled as to the whole or part of the land dealt with.

The Land Registration Act (Northern Ireland) 1970
Effect of transmissions on bankruptcy.

59A. – (1) Subject to subsection (2),where a trustee in bankruptcy is registered as owner of land he shall in all respects, and in particular as respects registered dealing with the land, be in the same position as if he had taken the land under a transfer for valuable consideration.

(2) The trustee in bankruptcy shall hold the land in respect of which he is registered for the purposes upon and subject to which the land is applicable by law, and subject to all unregistered rights subject to which the bankrupt held the land.