Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

LAW

CA Rajesh Prajapati (Practice) (202 Points)

26 March 2011

CAN ANY ONE TELL ME ABOUT THE MEANING OF "DISCLAIMER OF ONEROUS PROPERTY " IN THE CHAPTER OF WINDING UP OF CORPORATE LAW OF CA-FINAL!!!!!!! PLZZZZZZZZ HELP !!!!

Reply
Follow
Share

4 Replies

Lalit Kumar (Vice President ) (2213 Points)
Replied 26 March 2011

Will Break the answer in two parts..

First what is Disclaimer and then wat is Onerous Property..

1. What is a disclaimer?

A disclaimer is a formal notice on a prescribed form issued by a liquidator or trustee in respect of ’onerous’ property. It has the effect of removing from the liquidator or trustee all responsibility for the property disclaimed and discharges all personal liability in respect of it.

When acting as liquidator or trustee the official receiver should disclaim onerous property as soon as possible unless there is doubt as to whether there is any equity or realisable value. For example, it may be possible to disclaim in a company case where there is a commercial property, although it will be necessary to ascertain that a lease is of no value before issuing a disclaimer. In practice, most disclaimers issued in bankruptcies are in respect of domestic tenancies, but a disclaimer may be used against a variety of onerous property that cannot be disposed of by any other means.

A disclaimer can be issued at any time in the proceedings once the official receiver is liquidator or trustee.

2. What does ‘onerous property’ mean?

Careful regard must be made to the definition of onerous property. The Insolvency Act 1986 defines onerous property as:

any unprofitable contract and
any property, forming part of the estate, which is unsaleable, or not readily saleable or which may give rise to a liability to pay money or perform any other onerous act.

Upgrade to CAclubindia Pro. Subscribe Now!

Abhishek Jain (16 Points)
Replied 01 October 2016

simply means, koi aisa property jisme fayde se jyada nuksan h..to usko disclaim (tyag) karne me hi bhalai h..

3 Like

Ahmed Malik (55 Points)
Replied 04 November 2022

Can anyone say in form https://gas-stationsnearme.com/buc-ees/ which amount to be stated in colum total value of purchases and amount of payment or credit.