clay brick machine machinery:Plant and machinery

clay brick machine machinery:Plant and machinery

  31.6.89 Third-party claims

  Before dealing with any of the items covered by this Part the official receiver should ensure that he/she is satisfied that no other party has a valid claim over the items (see ).  Such valid claims may originate from a hire purchase or finance company, a landlord or a mortgagee, for example.  In addition, official receiver should check for the existence of an agricultural charge (see ) when dealing with farm equipment.

   

  31.6.90 Exempt property (bankruptcy only)

  In a bankruptcy certain items of plant and machinery or tenant’s fixtures (see ) may be claimed by the bankrupt as exempt property, and the official receiver should consider any valid claims in this regard before seeking to realise the items.  Guidance on exempt property can be found in .

   

  31.6.91 Continuation of the business

  The official receiver should ensure that there is no merit in continuing the business (so that it can be sold as a going concern, for example) before seeking to realise plant and machinery, and fixtures.  Guidance on the matters to be considered when deciding whether to continue a business is in – though it is likely that the urgent appointment of an insolvency practitioner as liquidator or trustee (see ) is more likely to be appropriate in these circumstances.

   

  31.6.92 Work in progress – related plant/machinery, etc.

  The official receiver should, obviously, not sell plant and machinery or fixtures that are needed to complete work in progress (see ).

   

  31.6.93 Plant and machinery – general

  Generally speaking, plant and machinery is an asset that is used by a business for the purpose of carrying on the business and is not stock in trade, the business premises or part of the business premises [].  The difference between plant and machinery is that generally machinery will have moving working parts, and plant will not (though computers and similar electronic devices are considered to be machinery, despite have no moving parts).  The working parts of a machine are also considered to be machinery.

  A motor vehicle is ‘machinery’, but advice on dealing with motor vehicles is in .

  The last prepared accounts of the insolvent may assist the official receiver in identifying plant and machinery (see ).

   

  31.6.94 Plant and machinery or not?

  Much of the case law regarding whether something is plant (machinery is easier to define) or not [] [] [] concerns tax legislation as there are capital allowances for items of plant and machinery.  By way of an example, it has been held that items of a purely decorative nature can be considered to be plant if they are a fundamental part of the business (such as in a pub or hotel) – otherwise, the items would be considered part of the premises (though not necessarily a fixture – see ) [].

  In this regard, the distinction between something being plant and not being plant (being part of the business premises) is unlikely to be important to the official receiver as liquidator or trustee, and of more importance (in, for example, deciding if something is an asset of the insolvent or a third-party) is likely to be the case law relating to whether something has become a fixture, or not (see ).

   

  31.6.95 Fixtures – general

  Generally, a fixture is considered to be an item which has become so attached to the land or property to form, in law, part of the land or property.  For the purpose of dealing with an insolvent estate it may be necessary for the official receiver to identify which of the insolvent’s chattels or trade equipment constitute fixtures and which do not – as an item that has become a fixture may be property of the landlord or mortgagee (see ). 

  A chattel,

  A fixture, or

  Something that becomes part of the land itself (such as bricks used to make a building).

   

  Under the principles relating to tenant’s fixtures, a tenant may remove items that have been affixed for ornament or for the purposes of carrying on business, so long as there is no contrary provision in the lease, and they are capable of removal without irreparable damage to the land or property  [] [] [] [.

  So far as deciding whether something is a tenant’s fixture, or not, each case is likely to turn on its own merits and it is not possible to give blanket guidance, as each circumstance is likely to be different.  In cases where there is a dispute of a material nature regarding the definition of fixtures the advice of Technical Section should be sought.

  31.6.99 Realising fixtures

  Assuming that the fixtures are tenants’ fixtures (see ) and are not exempt property (see ), the official receiver’s usual agents should be able to sell them.  Alternatively, they may be able to suggest a specialist agent. 

  Any sale price agreed should, of course, take into account the need to remove the items.  In this respect, it is likely to be more appropriate that the items are sold in-situ – perhaps to the landlord or a subsequent tenant, or disclaimed, as appropriate.

   

  31.6.100 Goods on Hire

  Where the insolvent has hired property to others, details of the whereabouts of all the property, its value and the conditions of the hire should be obtained.  Where the goods are of sufficient value to merit sale, they should be dealt with in the usual way, instructing agents if appropriate.  If it is necessary to obtain insurance, the nature and whereabouts of the goods should be notified to the insurers and it should be made clear that they are not within the official receiver’s control (see – for further guidance regarding insurance).  This may affect the insurance premium payable and the likelihood of obtaining cover.

  Alternatively, a competitor in the field might be willing to purchase the property and the benefit of the hire contract.

  If the equipment cannot be dealt with by way of sale, it should be disclaimed (see ) in situ.

clay brick machine machinery:Plant and machinery