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218. Power to disclaim onerous property

(1) The liquidator may, by giving notice which identifies the property disclaimed, disclaim any onerous property and may do so notwithstanding that he has taken possession of it, endeavoured to sell it, or otherwise exercised rights of ownership in relation to it.
(2) The following is onerous property for the purposes of this Section —
(a) any unprofitable contract; and
(b) any other property of the Company which is unsaleable or not readily saleable or is such that it may give rise to a liability to pay money or perform any other onerous act.
(3) A disclaimer under this Section —
(a) operates so as to determine, as from the date of the disclaimer, the rights, interests and liabilities of the Company in or in respect of the property disclaimed; but
(b) does not, except so far as is necessary for the purpose of releasing the Company from any liability, affect the rights or liabilities of any other person.
(4) Any person sustaining loss or damage in consequence of the operation of a disclaimer under this Section is deemed a creditor of the Company to the extent of the loss or damage and accordingly may prove for the loss or damage in the winding-up.
(5) The liquidator must send a copy of the notice of disclaimer to the Registrar and to every person who (to his knowledge) —
(a) claims an interest in the disclaimed property; or
(b) is under any liability in respect of the property, not being a liability discharged by the disclaimer.
(6) Any disclaimer of property by the liquidator does not take effect unless a copy of the notice of disclaimer has been served (so far as the liquidator is aware of their addresses) on every person claiming under the Company as underlessee or mortgagee.
(7) Any disclaimer of property by the liquidator is presumed valid and effective, unless it is proved that he has been in breach of his duty with respect to the giving of notice of disclaimer.
(8) The liquidator must include in the liquidator's records of the insolvency a record of —
(a) the persons to whom that liquidator has sent or given copies of the notice of disclaimer under this Section, showing their names and addresses and the nature of their respective interests;
(b) the dates on which the copies of the notice of disclaimer were sent or given to those persons; and
(c) the date on which a copy of the notice of disclaimer was sent to the Registrar.
(9) If the liquidator fails without reasonable excuse to comply with subsection (5) he commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule.