480

Disclaimer
of onerous
property.

Ch. 31. No. 1.] Companies.

company at the time of or subsequently to the creation of,
and in consideration for, the charge, together with interest
on that amount at the rate of six per cent. per annum.

253. (1) Where any part of the property of a company
Which is being wound up consists of land of any tenure
burdened with onerous covenants, of shares or stock in
companie., 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 performance of
any onerous act, or to the payment of any sum of money,
the hquidater 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
by 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
commencement 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
hability, affect the rights or abilities of any other person.

(3) The Court, before or on granting leave to dis-
claim, 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