260. Avoidance of certain attachments, etc. Flashcards
- Avoidance of certain attachments, etc.
General overview
[260.01] Section 260 renders any attachment, sequestration, distress or execution put in force against the assets of the company after the commencement of winding up by the court to be void. This affects writs of seizure and sale, garnishee orders, charging orders and writs of distress. It has to be read with s 334(1) and (2)(b) where it is provided that a creditor is not entitled to retain the benefit of any attachment of any debt as against the liquidator unless he has received the debt before the date of commencement of winding up. The intention of Parliament in enacting ss 255 and 260 of the Act is to ensure that no creditors, particularly the unsecured creditors, who execute their claims against the company, would be enriched at the expense of other unsecured creditors, between the date when the winding up petition is presented and when the winding up order is made by the court (the “interim period”)
