Report No. 26
65. Disclaimer of onerous property.-(1) Where any part of the property of an insolvent consists of
(i) land of any tenure burdened with onerous covenants;
(ii) shares or stocks in companies;
(iii) unprofitable contracts; or
(iv) 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 Official Assignee may, notwithstanding that he may have endeavoured to sell or have taken possession of the property, or exercised any act of ownership in relation thereto, but subject always to the provisions hereinafter contained in that behalf, by writing signed by him, at any time within twelve months after the insolvent has been adjudged insolvent or within 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 Official Assignee within one month after such adjudication as aforesaid, he may disclaim the property at any time within twelve months after he has first become aware thereof, or within such extended period as may be allowed by the court.
(2) The disclaimer shall operate to determine, as from the date thereof, the rights, interests and liabilities of the insolvent and his property in or in respect of the property disclaimed, and shall also discharge the Official Assignee from all personal liability in respect of the property disclaimed as from the date when the property vested in him, but shall not, except so far as is necessary for the purpose of releasing the insolvent and his property and the Official Assignee from liability, affect the rights or liabilities of any other person.
[New] [Cf. section 62, P.T.A.]