Transport Bill - continued        House of Lords

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SCHEDULE 3
 
  AIR TRAFFIC ADMINISTRATION ORDERS: NORTHERN IRELAND
     1. In their application to a licence company formed and registered under the Companies (Northern Ireland) Order 1986, sections 26 to 32 and Schedules 1 and 2 have effect with the modifications made by this Schedule.
 
     2. - (1) Section 26 is modified as follows.
 
      (2) In subsection (2) for "Part II of the 1986 Act" substitute "Part III of the 1989 Order".
 
      (3) In subsection (5) for "Parts I to VII of the 1986 Act" substitute "Parts II to VII of the 1989 Order".
 
      (4) In subsection (6)-
 
 
    (a) for "the 1986 Act" substitute "the 1989 Order", and
 
    (b) for "the Insolvency Act 1986" substitute "the Insolvency (Northern Ireland) Order 1989".
     3. - (1) Section 28 is modified as follows.
 
      (2) In subsection (3) for paragraph (a) substitute-
 
 
    "(a) the Secretary of State certifies that but for section 27 it would in his opinion be appropriate for the Department of Enterprise, Trade and Investment to petition for the company's winding up under Article 104A of the 1989 Order (petition following inspectors' report etc), and".
      (3) In subsection (3)(b) for "section 124A" substitute "Article 104A".
 
      (4) In subsection (6) for "section 123 of the 1986 Act" substitute "Article 103 of the 1989 Order".
 
     4. In section 29(5) for "the 1986 Act" substitute "the 1989 Order".
 
     5. - (1) Section 30 is modified as follows.
 
      (2) In subsection (2) for "Section 9(4) and (5) of the 1986 Act" substitute "Article 22(4) and (5) of the 1989 Order".
 
      (3) In subsection (3)-
 
 
    (a) for "Section 10(1), (2), (4) and (5) of the 1986 Act" substitute "Article 23(1), (2) and (4) of the 1989 Order";
 
    (b) in paragraphs (a), (b), (c) and (d) for "subsection" substitute "paragraph".
      (4) In subsection (5)-
 
 
    (a) for "section 411 of the 1986 Act" substitute "Article 359 of the 1989 Order", and
 
    (b) for "Parts I to VII of that Act" substitute "Parts II to VII of that Order".
     6. For Schedule 1 substitute-
 
 
 
 

 
 
 
"SCHEDULE 1
 
AIR TRAFFIC ADMINISTRATION ORDERS: GENERAL
  PART I
  MODIFICATIONS OF 1989 ORDER
 
Introduction
     1. This Part of this Schedule applies if an air traffic administration order is made in Northern Ireland.
 
 
General application of provisions of 1989 Order
     2. Articles 24 to 35 and 39 of the 1989 Order (which relate to administration orders under Part III of that Order) apply with the modifications specified in this Part of this Schedule.
 
 
General modifications
     3. In those Articles as applied by this Part of this Schedule-
 
 
    (a) references to an administration order are to an air traffic administration order, and
 
    (b) references to an administrator are to an air traffic administrator.
 
Effect of order
     4. In Article 24 of the 1989 Order (effect of order) as applied by this Part of this Schedule-
 
 
    (a) the requirement in paragraph (1)(a) that any petition for the winding up of the company shall be dismissed does not prejudice the air traffic administration order if it is made by virtue of section 27 above,
 
    (b) the reference in paragraph (3)(d) to proceedings includes a reference to any proceedings under or for the purposes of section 20 above, and
 
    (c) paragraph (3)(d) has effect as if after "its property" there were inserted ", and no right of re-entry or forfeiture may be enforced against the company in respect of any land,".
 
Appointment of air traffic administrator
     5. In Article 26 of the 1989 Order (appointment of administrator) as applied by this Part of this Schedule for paragraph (3) substitute-
 
    "(3) An application for an order under paragraph (2) may be made-
 
 
    (a) by the Secretary of State,
 
    (b) by the CAA with the Secretary of State's consent,
 
    (c) by any continuing air traffic administrator of the company, or
 
    (d) where there is no such air traffic administrator, by the company, the directors or any creditor or creditors of the company."
 
General powers of air traffic administrator
     6. - (1) Article 27 of the 1989 Order (general powers of administrator) as applied by this Part of this Schedule has effect as follows.
 
      (2) In paragraph (1)(b) the reference to the powers specified in Schedule 1 to the 1989 Order includes a reference to a power to act on behalf of the company-
 
 
    (a) for the purposes of this Part, or
 
    (b) for the purposes of the exercise or performance of any power or duty which is conferred or imposed on the company by virtue of its holding a licence.
      (3) In paragraph (4) the reference to a power conferred by the company's memorandum or articles of association includes a reference to a power conferred by virtue of the company's holding a licence.
 
 
Power to deal with charged property
     7. - (1) Article 28 of the 1989 Order (power to deal with charged property) as applied by this Part of this Schedule has effect as follows.
 
      (2) In paragraph (2) for "the purpose or one or more of the purposes specified in the administration order" substitute "one or both of the purposes of the administration order".
 
      (3) In paragraph (5)(b) for "in the open market by a willing vendor" substitute "for the best price which is reasonably available on a sale which is consistent with the purposes of the air traffic administration order".
 
 
Duties of air traffic administrator
     8. - (1) Article 29 of the 1989 Order (duties of administrator) as applied by this Part of this Schedule has effect as follows.
 
      (2) For paragraph (2) substitute-
 
 
    "(2) Subject to any directions of the High Court, it shall be the duty of the air traffic administrator to manage the affairs, business and property of the company in accordance with proposals under Article 35 as they are revised from time to time."
 
      (3) In paragraph (3) omit sub-paragraph (a).
 
 
Discharge of order
     9. - (1) Article 30 of the 1989 Order (discharge and variation of administration order) as applied by this Part of this Schedule has effect as follows.
 
      (2) For paragraphs (1) and (2) substitute-
 
 
    "(1) An application for an air traffic administration order to be discharged may be made-
 
 
    (a) by the air traffic administrator, on the ground that the purposes of the order have been achieved; or
 
    (b) by the Secretary of State or (with his consent) by the CAA, on the ground that it is no longer necessary that those purposes are achieved."
      (3) In paragraph (3) omit the words "or vary".
 
      (4) In paragraph (4)-
 
 
    (a) omit the words "or varied" and "or variation", and
 
    (b) after "to the registrar" insert ", to the CAA and to the Secretary of State".
 
Notice of making of order
     10. In Article 33(2) of the 1989 Order (notice of order to be given by administrator) as applied by this Part of this Schedule after "to the registrar" insert ", to the CAA, to the Secretary of State".
 
 
Statement of proposals
     11. In Article 35 of the 1989 Order (statement of proposals) as applied by this Part of this Schedule for paragraphs (1) and (2) substitute-
 
 
    "(1) Where an air traffic administration order has been made, the air traffic administrator shall, within 3 months (or such longer period as the High Court may allow) after the making of the order, send a statement of his proposals for achieving the purposes of the order-
 
 
    (a) to the Secretary of State,
 
    (b) to the CAA,
 
    (c) to all creditors of the company (so far as he is aware of their addresses), and
 
    (d) to the registrar.
      (2) The air traffic administrator may from time to time revise those proposals.
 
      (2A) If the air traffic administrator proposes to make revisions which appear to him to be substantial, he shall before making them send a statement of the proposed revisions-
 
 
    (a) to the Secretary of State,
 
    (b) to the CAA,
 
    (c) to all creditors of the company (so far as he is aware of their addresses), and
 
    (d) to the registrar.
      (2B) The air traffic administrator shall give a copy of any statement under paragraph (1) or (2A) to all members of the company before the end of the period described in paragraph (1) or, as the case may be, before making the revisions.
 
      (2C) The requirement in paragraph (2B) is satisfied if the administrator-
 
 
    (a) sends a copy of the statement to all members of the company (so far as he is aware of their addresses), or
 
    (b) publishes in the prescribed manner a notice stating an address to which members should write for copies of the statement to be sent to them free of charge."
 
Applications to court
     12. - (1) Article 39 of the 1989 Order (protection of interests of creditors and members) as applied by this Part of this Schedule has effect as follows.
 
      (2) After paragraph (1) insert-
 
 
    "(1A) If a creditor or member of the company makes an application under paragraph (1), the court shall give notice of the application to the Secretary of State, who shall be entitled to be heard by the court in connection with the application.
 
      (1B) At any time when an air traffic administration order is in force the Secretary of State or (with his consent) the CAA may apply to the court by petition for an order under this Article on one or both of the following grounds.
 
      (1C) The first ground is that the air traffic administrator has exercised or is exercising or proposing to exercise his powers in relation to the company in a manner which will not best ensure the achievement of the purposes of the order.
 
      (1D) The second ground is that he has exercised or is exercising or proposing to exercise his powers in relation to the company in a manner which involves a contravention of-
 
 
    (a) a condition of the licence granted under Chapter I of Part I of the Transport Act 2000, or
 
    (b) a duty imposed by section 8(1) of that Act, or
 
    (c) any other requirement imposed on the company by virtue of its holding the licence."
      (3) Omit paragraph (3).
 
      (4) In paragraph (4) omit the words "Subject to paragraph (3),".
 
      (5) After that paragraph insert-
 
 
    "(4A) Provision may be made by virtue of paragraph (4)(d) that the air traffic administration order is to be discharged from such date as may be specified in the order unless, before that date, such measures are taken as the court thinks fit for the purpose of protecting the interests of creditors."
 
      (6) For paragraph (6) substitute-
 
 
    "(6) Where an air traffic administration order is discharged, the air traffic administrator shall within 14 days after the date on which the discharge takes effect send an office copy of the order under this Article-
 
 
    (a) to the Secretary of State,
 
    (b) to the CAA, and
 
    (c) to the registrar;
       and if, without reasonable excuse, the air traffic administrator contravenes this paragraph, he shall be guilty of an offence and, for continued contravention, he shall be guilty of a continuing offence."
 
  PART II
  OTHER PROVISIONS
 
General adaptations
     13. - (1) References in the 1989 Order (except in Articles 21 to 23 and 36 to 38), or in any other enactment passed before the day on which this Act is passed, to an administration order under Part III of that Order, to an application for such an order and to an administrator include references (respectively) to an air traffic administration order, to an application for an air traffic administration order and to an air traffic administrator.
 
      (2) References in the 1989 Order, or in any other enactment passed before the day on which this Act is passed, to an enactment contained in Part III of that Order include references to that enactment as applied by section 30 above or Part I of this Schedule.
 
      (3) But-
 
 
    (a) sub-paragraph (1) applies in relation to a reference in an enactment contained in Part III of the 1989 Order only so far as necessary for the purposes of the operation of the provisions of that Part as so applied;
 
    (b) sub-paragraphs (1) and (2) apply subject to Part I of this Schedule.
 
Saving
     14. The provisions of this Schedule are without prejudice to the power conferred by Article 359 of the 1989 Order (insolvency rules) as modified by paragraph 13(1) and (2).
 
 
Interpretation
     15. - (1) In this Schedule "the 1989 Order" means the Insolvency (Northern Ireland) Order 1989.
 
      (2) For the purposes of this Schedule and any modification of the 1989 Order made by this Schedule-
 
 
    (a) an air traffic administration order is an order made under section 27 or 28 above;
 
    (b) an air traffic administrator is a person appointed by the court to achieve the purposes of an air traffic administration order;
 
    (c) the CAA is the Civil Aviation Authority."
 
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Prepared 28 July 2000