121Recovery of compensation for disposal of receivable property

121 Recovery of compensation for disposal of receivable property (1) If receivable property has at any time been taken by, or paid or transferred to, a person unlawfully or in breach of trust in circumstances in which— (a) the person knew or believed at the time that the taking, payment or transfer was unlawful or in breach of trust; or (b) there was no consideration for the taking, payment or transfer; or (c) there was inadequate consideration for the taking, payment or transfer; or (d) the person became indebted or otherwise liable to the relevant licensee or a relevant associate, or to a client of the relevant licensee, as a result of the taking, payment or transfer— the receiver may recover from the person, as a debt, the amount taken, paid or transferred, the amount of the inadequacy or the amount of the debt. (2) A person from whom an amount is recovered under subsection (1) is not liable to any other person in respect of the amount. (3) If receivable property has at any time been paid or transferred unlawfully or in breach of trust to, or for the benefit of, a person in respect of a cause of action the person claims to have against another person, the receiver— (a) may recover from the person as a debt the amount of the payment or the value of the property; or (b) to the extent to which the full amount or value is not recovered from the person under paragraph (a), may take any proceedings in relation to the claimed cause of action as the person could have taken. (4) If a receiver takes proceedings under subsection (3)(b) in relation to a cause of action claimed by a person, the receiver may not later take proceedings under subsection (3)(a) to recover property paid or transferred to the person in respect of the same cause of action. (5) If receivable property is used unlawfully or in breach of trust to discharge a debt or liability of a person, the receiver may recover from the person as a debt the amount that was required for the discharge of the debt or liability, reduced by the value of any consideration provided by the person for the discharge. (6) Recovery proceedings under this section may be taken in the name of the receiver or in the name of any other person who, had the receiver not been appointed, would have been entitled to take the proceedings.