The Insolvency Rules 1986

• (5) The order must be served forthwith on the respondent; and it must be served personally, unless the court otherwise orders.

Procedure for examination

9.4

• (1) At any examination of the respondent, the applicant may attend in person, or be represented by a solicitor with or without counsel, and may put such questions to the respondent as the court may allow.

• (2) Any other person who could have applied for an order under the applicable section in respect of the insolvent's affairs may, with the leave of the court and if the applicant does not object, attend the examination and put questions to the respondent (but only through the applicant).

• (3) If the respondent is ordered to clarify any matter or to give additional information, the court shall direct him as to the questions which he is required to answer, and as to whether his answers (if any) are to be made on affidavit.

• (4) Where application has been made under the applicable section on information provided by a creditor of the insolvent, that creditor may, with the leave of the court and if the applicant does not object, attend the examination and put questions to the respondent (but only through the applicant).

• (5) The respondent may at his own expense employ a solicitor with or without counsel, who may put to him such questions as the court may allow for the purpose of enabling him to explain or qualify any answers given by him, and may make representations on his behalf.

• (6) There shall be made in writing such record of the examination as the court thinks proper. The record shall be read over either to or by the respondent and signed by him at a venue fixed by the court.

• (7) The written record may, in any proceedings (whether under the Act or otherwise) be used as evidence against the respondent of any statement made by him in the course of his examination.

Record of examination

9.5

• (1) Unless the court otherwise directs, the written record of the respondent's examination, and any answer given by him to interrogatories, and any affidavits submitted by him in compliance with an order of the court under the applicable section, shall not be filed in court.

• (2) The written record, answers and affidavits shall not be open to inspection, without an order of the court, by any person other than—

• (a) the applicant for an order under the applicable section, or

• (b) any person who could have applied for such an order in respect of the affairs of the same insolvent.

• (3) Paragraph (2) applies also to so much of the court file as shows the grounds of the application for an order under the applicable section and to any copy of proposed interrogatories.

• (4) The court may from time to time give directions as to the custody and inspection of any documents to which this Rule applies, and as to the furnishing of copies of, or extracts from, such documents.

Costs of proceedings under ss.236, 366

9.6

• (1) Where the court has ordered an examination of any person under the applicable section, and it appears to it that the examination was made necessary because information had been unjustifiably refused by the respondent, it may order that the costs of the examination be paid by him.

• (2) Where the court makes an order against a person under—

• (a) section 237(1) or 367(1) (to deliver up property in his possession which belongs to the insolvent), or

• (b) section 237(2) or 367(2) (to pay any amount in discharge of a debt due to the insolvent),

the costs of the application for the order may be ordered by the court to be paid by the respondent.

• (3) Subject to paragraphs (1) and (2) above, the applicant's costs shall, unless the court otherwise orders, be paid out of the insolvent estate.

• (4) A person summoned to attend for examination under this Chapter shall be tendered a reasonable sum in respect of travelling expenses incurred in connection with his attendance. Other costs falling on him are at the court's discretion.

• (5) Where the examination is on the application of the official receiver otherwise than in the capacity of liquidator or trustee, no order shall be made for the payment of costs by him.

PART 10 — OFFICIAL RECEIVERS

Appointment of official receivers

10.1

Judicial notice shall be taken of the appointment under sections 399 to 401 of official receivers and deputy official receivers.

Persons entitled to act on official receiver's behalf

10.2

• (1) In the absence of the official receiver authorised to act in a particular case, an officer authorised in writing for the purpose by the Secretary of State, or by the official receiver himself, may, with the leave of the court, act on the official receiver's behalf and in his place—

• (a) in any examination under section 133, 236, 290 or 366, and

• (b) in respect of any application to the court.

• (2) In case of emergency, where there is no official receiver capable of acting, anything to be done by, to or before the official receiver may be done by, to or before the registrar of the court.

Application for directions

10.3

The official receiver may apply to the court for directions in relation to any matter arising in insolvency proceedings.

Official receiver's expenses

10.4

• (1) Any expenses incurred by the official receiver (in whatever capacity he may be acting) in connection with proceedings taken against him in insolvency proceedings are to be treated as expenses of the insolvency proceedings.

• “Expenses” includes damages.

• (2) In respect of any sums due to him under paragraph (1), the official receiver has a charge on the insolvent estate.

PART 11 — DECLARATION AND PAYMENT OF DIVIDEND (WINDING UP AND BANKRUPTCY)

Preliminary

11.1

• (1) The Rules in this Part relate to the declaration and payment of dividends in companies winding up and in bankruptcy.

• (2) The following definitions apply—

• (a) “the insolvent” means the company in liquidation or, as the case may be, the bankrupt; and

• (b) “creditors” means those creditors of the insolvent of whom the responsible insolvency practitioner is aware, or who are identified in the insolvent's statement of affairs.

• (3) For the purposes of this Part, a member State liquidator appointed in relation to an insolvent is deemed to be a creditor.

Notice of intended dividend

11.2

• (1) Before declaring a dividend, the responsible insolvency practitioner shall give notice of his intention to do so—

• (a) to all creditors whose addresses are known to him and who have not proved their debts, and

• (b) where a member State liquidator has been appointed in relation to the insolvent , to that person.

• (1A) Before declaring a first dividend, the responsible insolvency practitioner shall, unless he has previously by public advertisement invited creditors to prove their debts, give notice of the intended dividend by public advertisement.

• (2) Any notice under paragraph (1) and any notice of a first dividend under paragraph (1A) shall specify a date (“the last date for proving”) up to which proofs may be lodged. The date shall be the same for all creditors, and not less than 21 days from that of the notice.

• (3) The insolvency practitioner shall in the notice state his intention to declare a dividend (specified as interim or final, as the case may be) within the period of 4 months from the last date for proving.

Final admission/rejection of proofs

11.3

• (1) The responsible insolvency practitioner shall, within 7 days from the last date for proving, deal with every creditor's proof (in so far as not already dealt with) by admitting or rejecting it in whole or in part, or by making such provision as he thinks fit in respect of it.

• (2) The insolvency practitioner is not obliged to deal with proofs lodged after the last date for proving; but he may do so, if he thinks fit.

• (3) In the declaration of a dividend no payment shall be made more than once by virtue of the same debt.

• (4) Subject to Rule 11.11, where—

• (a) a creditor has proved, and

• (b) a member State liquidator has proved in relation to the same debt,

payment shall only be made to the creditor.

Postponement or cancellation of dividend

11.4

If in the period of 4 months referred to in Rule 11.2(3)—

• (a) the responsible insolvency practitioner has rejected a proof in whole or in part and application is made to the court for his decision to be reversed or varied, or

• (b) application is made to the court for the insolvency practitioner's decision on a proof to be reversed or varied, or for a proof to be expunged, or for a reduction of the amount claimed,

Decision to declare dividend

11.5

• (1) If the responsible insolvency practitioner has not, in the 4-month period referred to in Rule 11.2(3), had cause to postpone or cancel the dividend, he shall within that period proceed to declare the dividend of which he gave notice under that Rule.

• (2) Except with the leave of the court, the insolvency practitioner shall not declare the dividend so long as there is pending any application to the court to reverse or vary a decision of his on a proof, or to expunge a proof or to reduce the amount claimed.

If the court gives leave under this paragraph, the insolvency practitioner shall make such provision in respect of the proof in question as the court directs.

Notice of declaration

11.6

• (1) The responsible insolvency practitioner shall give notice of the dividend to—

• (a) all creditors who have proved their debts, and

• (b) where a member State liquidator has been appointed in relation to the insolvent, to that person.

• (2) The notice shall include the following particulars relating to the insolvency and the administration of the insolvent estate—

• (a) amounts realised from the sale of assets, indicating (so far as practicable) amounts raised by the sale of particular assets;

• (b) payments made by the insolvency practitioner in the administration of the insolvent estate;

• (c) provision (if any) made for unsettled claims, and funds (if any) retained for particular purposes;

• (d) the total amount to be distributed, and the rate of dividend;

• (e) whether, and if so when, any further dividend is expected to be declared.

• (3) The dividend may be distributed simultaneously with the notice declaring it.

• (4) Payment of dividend may be made by post, or arrangements may be made with any creditor for it to be paid to him in another way, or held for his collection.

• (5) Where a dividend is paid on a bill of exchange or other negotiable instrument, the amount of the dividend shall be endorsed on the instrument, or on a certified copy of it, if required to be produced by the holder for that purpose.

Notice of no, or no further, dividend

11.7

If the responsible insolvency practitioner gives notice to creditors that he is unable to declare any dividend or (as the case may be) any further dividend, the notice shall contain a statement to the effect either—

• (a) that no funds have been realised, or

• (b) that the funds realised have already been distributed or used or allocated for defraying the expenses of administration.

Proof altered after payment of dividend

11.8

• (1) If after payment of dividend the amount claimed by a creditor in his proof is increased, the creditor is not entitled to disturb the distribution of the dividend; but he is entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend or dividends which he has failed to receive.

• (2) Any dividend or dividends payable under paragraph (1) shall be paid before the money there referred to is applied to the payment of any such further dividend.

• (3) If, after a creditor's proof has been admitted, the proof is withdrawn or expunged, or the amount of it is reduced, the creditor is liable to repay to the responsible insolvency practitioner, for the credit of the insolvent estate, any amount over paid by way of dividend.

Secured creditors

11.9

• (1) The following applies where a creditor re-values his security at a time when a dividend has been declared.

• (2) If the revaluation results in a reduction of his unsecured claim ranking for dividend, the creditor shall forthwith repay to the responsible insolvency practitioner, for the credit of the insolvent estate, any amount received by him as dividend in excess of that to which he would be entitled having regard to the revaluation of the security.

• (3) If the revaluation results in an increase of his unsecured claim, the creditor is entitled to receive from the insolvency practitioner, out of any money for the time being available for the payment of a further dividend, before any such further dividend is paid, any dividend or dividends which he has failed to receive, having regard to the revaluation of the security.

However, the creditor is not entitled to disturb any dividend declared (whether or not distributed) before the date of the revaluation.

Disqualification from dividend

11.10

If a creditor contravenes any provision of the Act or the Rules relating to the valuation of securities, the court may, on the application of the responsible insolvency practitioner, order that the creditor be wholly or partly disqualified from participation in any dividend.

Assignment of right to dividend

11.11

• (1) If a person entitled to a dividend gives notice to the responsible insolvency practitioner that he wishes the dividend to be paid to another person, or that he has assigned his entitlement to another person, the insolvency practitioner shall pay the dividend to that other accordingly.

• (2) A notice given under this Rule must specify the name and address of the person to whom payment is to be made.

Preferential creditors

11.12

• (1) Subject as follows, the Rules in this Part apply with respect to any distribution made in the insolvency to preferential creditors, with such adaptations as are appropriate considering that such creditors are of a limited class.

• (2) The notice by the responsible insolvency practitioner under Rule 11.2, where a dividend is to be declared for preferential creditors, need only be given to those creditors in whose case he has reason to believe that their debts are preferential and public advertisement of the intended dividend need only be given if the insolvency practitioner thinks fit.

Debt payable at future time

11.13

• (1) Where a creditor has proved for a debt of which payment is not due at the date of the declaration of dividend, he is entitled to dividend equally with other creditors, but subject as follows.

• (2) For the purpose of dividend (and no other purpose) the amount of the creditor’s admitted proof (or, if a distribution has previously been made to him, the amount remaining outstanding in respect of his admitted proof) shall be reduced by applying the following formula—

$$X1.05n$where—a“X” is the value of the admitted proof; andb“n” is the period beginning with the relevant date and ending with the date on which the payment of the creditor’s debt would otherwise be due expressed in years and months in a decimalised form.$

• (3) In paragraph (2) “relevant date” means—

• (a) in the case of a winding up which was not immediately preceded by an administration, the date that the company went into liquidation;

• (b) in the case of a winding up which was immediately preceded by an administration, the date that the company entered administration; and

• (c) in the case of a bankruptcy, the date of the bankruptcy order.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 12 — MISCELLANEOUS AND GENERAL

Power of Secretary of State to regulate certain matters

12.1

• (1) Pursuant to paragraph 27 of Schedule 8 to the Act, and paragraph 30 of Schedule 9 to the Act, the Secretary of State may , subject to the Act and the Rules, make regulations with respect to any matter provided for in the Rules as relates to the carrying out of the functions of a liquidator, provisional liquidator, administrator or administrative receiver of a company, an interim receiver appointed under section 286, of the official receiver while acting as receiver or manager under section 287 or of a trustee of a bankrupt’s estate, including, without prejudice to the generality of the foregoing, provision with respect to the following matters arising in companies winding up and individual bankruptcy—

• (a) the preparation and keeping by liquidators, trustees, provisional liquidators, interim receivers and the official receiver, of books, accounts and other records, and their production to such persons as may be authorised or required to inspect them;

• (b) the auditing of liquidators' and trustees' accounts;

• (c) the manner in which liquidators and trustees are to act in relation to the insolvent company's or bankrupt's books, papers and other records, and the manner of their disposal by the responsible insolvency practitioner or others;

• (d) the supply—

• (i) in company insolvency, by the liquidator to creditors and members of the company, contributories in its winding up and the liquidation committee, and

• (ii) in individual insolvency, by the trustee to creditors and the creditors' committee,

of copies of documents relating to the insolvency and the affairs of the insolvent company or individual (on payment, in such cases as may be specified by the regulations, of the specified fee);

• (e) the manner in which insolvent estates are to be distributed by liquidators and trustees, including provision with respect to unclaimed funds and dividends;

• (f) the manner in which moneys coming into the hands of a liquidator or trustee in the course of his administration are to be handled and ... invested, and the payment of interest on sums which, in pursuance of regulations made by virtue of this sub-paragraph, have been paid into the Insolvency Service Account;

• (g) the amount (or the manner of determining the amount) to be paid to the official receiver by way of remuneration when acting as provisional liquidator, liquidator, interim receiver or trustee.

• (2) Any reference in paragraph (1) to a trustee includes a reference to the official receiver when acting as receiver and manager under section 287.

• (3) Regulations made pursuant to paragraph (1) may—

• (a) confer a discretion on the court;

• (b) make non-compliance with any of the regulations a criminal offence;

• (c) make different provision for different cases, including different provision for different areas ; and

• (d) contain such incidental, supplemental and transitional provisions as may appear to the Secretary of State necessary or expedient.

Costs, expenses, etc

12.2

• (1) All fees, costs, charges and other expenses incurred in the course of winding up , administration or bankruptcy proceedings are to be regarded as expenses of the winding up or the administration or, as the case may be, of the bankruptcy.

• (2) The costs associated with the prescribed part shall be paid out of the prescribed part.

Provable debts

12.3

• (1) Subject as follows, in administration, winding up and bankruptcy, all claims by creditors are provable as debts against the company or, as the case may be, the bankrupt, whether they are present or future, certain or contingent, ascertained or sounding only in damages.

• (2) The following are not provable—

• (a) in bankruptcy, any fine imposed for an offence, and any obligation (other than an obligation to pay a lump sum or to pay costs)” and after the words “family proceedings or any obligation arising arising under an order made in family ... proceedings or under a maintenance assessment made under the Child Support Act 1991;

• (b) in administration, winding up or bankruptcy, any obligation arising under a confiscation order made under section 1 of the Drug Trafficking Offences Act 1986 or section 1 of the Criminal Justice (Scotland) Act 1987 or section 71 of the Criminal Justice Act 1988.

• “Fine”...and “family proceedings” have the meanings given by section 281(8) of the Act (which applies the Magistrates' Courts Act 1980 and the Matrimonial and Family Proceedings Act 1984).

• (2A) The following are not provable except at a time when all other claims of creditors in the insolvency proceedings (other than any of a kind mentioned in this paragraph) have been paid in full with interest under section 189(2) , Rule 2.88 or, as the case may be, section 328(4)—

• (a) in an administration, a winding up or a bankruptcy, any claim arising by virtue of section 382(1)(a) of the Financial Services and Markets Act 2000, not being a claim also arising by virtue of section 382(1)(b) of that Act;

• (c) in an administration or a winding up, any claim which by virtue of the Act or any other enactment is a claim the payment of which in a bankruptcy , an administration or a winding up is to be postponed.

• (3) Nothing in this Rule prejudices any enactment or rule of law under which a particular kind of debt is not provable, whether on grounds of public policy or otherwise.

Notices

12.4

• (1) All notices required or authorised by or under the Act or the Rules to be given must be in writing, unless it is otherwise provided, or the court allows the notice to be given in some other way.

• (2) Where in any proceedings a notice is required to be sent or given by the official receiver or by the responsible insolvency practitioner, the sending or giving of it may be proved by means of a certificate—

• (a) in the case of the official receiver, by him or a member of his staff, and

• (b) in the case of the insolvency practitioner, by him, or his solicitor, or a partner or an employee of either of them,

that the notice was duly posted.

• (3) In the case of a notice to be sent or given by a person other than the official receiver or insolvency practitioner, the sending or giving of it may be proved by means of a certificate by that person that he posted the notice, or instructed another person (naming him) to do so.

• (4) A certificate under this Rule may be endorsed on a copy or specimen of the notice to which it relates.

Quorum at meeting of creditors or contributories

12.4A

• (1) Any meeting of creditors or contributories in insolvency proceedings is competent to act if a quorum is present.

• (2) Subject to the next paragraph, a quorum is—

• (a) in the case of a creditors' meeting, at least one creditor entitled to vote;

• (b) in the case of a meeting of contributories, at least 2 contributories so entitled, or all the contributories, if their number does not exceed 2.

• (3) For the purposes of this Rule, the reference to the creditor or contributories necessary to constitute a quorum is to those persons present or represented by proxy by any person (including the chairman) and in the case of any proceedings under Parts I—VII of the Act includes persons duly represented under section 375 of the Companies Act.

• (4) Where at any meeting of creditors or contributories—

• (a) the provisions of this Rule as to a quorum being present are satisfied by the attendance of—

• (i) the chairman alone, or

• (ii) one other person in addition to the chairman, and

• (b) the chairman is aware, by virtue of proofs and proxies received or otherwise, that one or more additional persons would, if attending, be entitled to vote,

the meeting shall not commence until at least the expiry of 15 minutes after the time appointed for its commencement.

Evidence of proceedings at meetings

12.5

• (1) A minute of proceedings at a meeting (held under the Act or the Rules) of a person's creditors, or of the members of a company, or of the contributories in a company's liquidation, signed by a person describing himself as, or appearing to be, the chairman of that meeting is admissible in insolvency proceedings without further proof.

• (2) The minute is prima facie evidence that—

• (a) the meeting was duly convened and held,

• (b) all resolutions passed at the meeting were duly passed, and

• (c) all proceedings at the meeting duly took place.

Documents issuing from Secretary of State

12.6

• (1) Any document purporting to be, or to contain, any order, directions or certificate issued by the Secretary of State shall be received in evidence and deemed to be or (as the case may be) contain that order or certificate, or those directions, without further proof, unless the contrary is shown.

• (2) Paragraph (1) applies whether the document is signed by the Secretary of State himself or an officer on his behalf.

• (3) Without prejudice to the foregoing, a certificate signed by the Secretary of State or an officer on his behalf and confirming—

• (a) the making of any order,

• (b) the issuing of any document, or

• (c) the exercise of any discretion, power or obligation arising or imposed under the Act or the Rules,

is conclusive evidence of the matters dealt with in the certificate.

Forms for use in insolvency proceedings

12.7

• (1) The forms contained in Schedule 4 to the Rules shall be used in and in connection with, insolvency proceedings, whether in the High Court or a county court.

• (2) The forms shall be used with such variations, if any, as the circumstances may require.

• (3) Where any form contained in Schedule 4 is substantially the same as one used for a corresponding purpose under either—

• (a) the law and practice obtaining before the coming into force of the Rules; or

• (b) if the form was first required to be used after the coming into force of the Rules, the law and practice obtaining before the making of the requirement,

whichever shall be appropriate in any case, the latter may continue to be used (with the necessary modifications) until 1 March 1988.

Insolvency practitioner's security

12.8

• (1) Wherever under the Rules any person has to appoint, or certify the appointment of, an insolvency practitioner to any office, he is under a duty to satisfy himself that the person appointed or to be appointed has security for the proper performance of his functions.

• (2) It is the duty—

• (a) of the creditors' committee in companies administration, administrative receivership and bankruptcy,

• (b) of the liquidation committee in companies winding up, and

• (c) of any committee of creditors established for the purposes of a voluntary arrangement under Part I or VIII of the Act,

to review from time to time the adequacy of the responsible insolvency practitioner's security.

• (3) In any insolvency proceedings the cost of the responsible insolvency practitioner's security shall be defrayed as an expense of the proceedings.

Time-Limits

12.9

• (1) The provisions of CPR ruled 2.8 (time) apply, as regards computation of time, to anything required or authorised to be done by the Rules.

• (2) The provisions of CPR rule 3.1(2)(a) (the court’s general powers of management) apply so as to enable the court to extend or shorten the time for compliance with anything required or authorised to be done by the Rules.

Service by post

12.10

• (1) For a document to be properly served by post, it must be contained in an envelope addressed to the person on whom service is to be effected, and pre-paid for either first or second class post.

• (1A) A document to be served by post may be sent to the last known address of the person to be served.

• (2) Where first class post is used, the document is treated as served on the second business day after the date of posting, unless the contrary is shown.

• (3) Where second class post is used, the document is treated as served on the fourth business day after the date of posting, unless the contrary is shown.

• (4) The date of posting is presumed, unless the contrary is shown, to be the date shown in the post-mark on the envelope in which the document is contained.

General provisions as to service

12.11

Subject to Rule 12.10 and Rule 12.12, CPR Part 6 (service of documents) applies as regards any matter relating to the service of documents and the giving of notice in insolvency proceedings.

Service outside the jurisdiction

12.12

• (1) CPR Part 6, paragraphs 6.17 to 6.35 (service of process, etc., out of the jurisdiction) do not apply in insolvency proceedings.

• (2) A bankruptcy petition may, with the leave of the court, be served outside England and Wales in such manner as the court may direct.

• (3) Where for the purposes of insolvency proceedings any process or order of the court, or other document, is required to be served on a person who is not in England and Wales, the court may order service to be effected within such time, on such person, at such place and in such manner as it thinks fit, and may also require such proof of service as it thinks fit.

• (4) An application under this Rule shall be supported by an affidavit stating—

• (a) the grounds on which the application is made, and

• (b) in what place or country the person to be served is, or probably may be found.

• (5) Leave of the court is not required to serve anything referred to in this Rule on a member State liquidator.

Confidentiality of documents

12.13

• (1) Where in insolvency proceedings the responsible insolvency practitioner considers, in the case of a document forming part of the records of the insolvency, that—

• (a) it should be treated as confidential, or

• (b) it is of such a nature that its disclosure would be calculated to be injurious to the interests of the insolvent's creditors or, in the case of a company's insolvency, its members or the contributories in its winding up,

he may decline to allow it to be inspected by a person who would otherwise be entitled to inspect it.

• (2) The persons to whom the insolvency practitioner may under this Rule refuse inspection include the members of a liquidation committee or a creditors' committee.

• (3) Where under this Rule the insolvency practitioner determines to refuse inspection of a document, the person wishing to inspect it may apply to the court for that determination to be overruled; and the court may either overrule it altogether, or sustain it subject to such conditions (if any) as it thinks fit to impose.

• (4) Nothing in this Rule entitles the insolvency practitioner to decline to allow the inspection of any proof or proxy.

Notices sent simultaneously to the same person

12.14

Where under the Act or the Rules a document of any description is to be sent to a person (whether or not as a member of a class of persons to whom that same document is to be sent), it may be sent as an accompaniment to any other document or information which the person is to receive, with or without modification or adaptation of the form applicable to that document.

Right to copy documents

12.15

Where the Act or the Rules confer a right for any person to inspect documents, the right includes that of taking copies of those documents, on payment—

• (a) in the case of documents on the court's file of proceedings, of the fee chargeable under any order made under section 92 of the Courts Act 2003, and

• (b) otherwise, of the appropriate fee.

Charge for copy documents

12.15A

Where the responsible insolvency practitioner or the official receiver is requested by a creditor, member, contributory or member of a liquidation or creditors' committee to supply copies of any documents he is entitled to require the payment of the appropriate fee in respect of the supply of the documents.

Non-receipt of notice of meeting

12.16

Where in accordance with the Act or the Rules a meeting of creditors or other persons is summoned by notice, the meeting is presumed to have been duly summoned and held, notwithstanding that not all those to whom the notice is to be given have received it.

Right to have list of creditors

12.17

• (1) This Rule applies in any of the following proceedings—

• (a) proceedings under Part II of the Act (company administration),

• (b) a creditors' voluntary winding up, or a winding up by the court, and

• (c) proceedings in bankruptcy.

• (2) In any such proceedings a creditor who under the Rules has the right to inspect documents on the court file also has the right to require the responsible insolvency practitioner to furnish him with a list of the insolvent's creditors and the amounts of their respective debts.

This does not apply if a statement of the insolvent's affairs has been filed in court or, in the case of a creditors' voluntary winding up, been delivered to the registrar of companies.

• (2A) For the purpose of this Rule a member State liquidator appointed in main proceedings in relation to a person is deemed to be a creditor.

• (3) The insolvency practitioner, on being required by any person to furnish the list, shall send it to him, but is entitled to charge the appropriate fee for doing so.

False claim of status as creditor, etc

12.18

• (1) Where the Rules provide for creditors, members of a company or contributories in a company's winding up a right to inspect any documents, whether on the court's file or in the hands of a responsible insolvency practitioner or other person, it is an offence for a person, with the intention of obtaining a sight of documents which he has not under the Rules any right to inspect, falsely to claim a status which would entitle him to inspect them.

• (2) A person guilty of an offence under this Rule is liable to imprisonment or a fine, or both.

Execution overtaken by judgment debtor's insolvency

12.19

• (1) This Rule applies where execution has been taken out against property of a judgment debtor, and notice is given to the enforcement officer or other officer charged with the execution—

• (a) under section 184(1) (that a winding-up order has been made against the debtor, or that a provisional liquidator has been appointed, or that a resolution for voluntary winding up has been passed); or

• (b) under section 184(4) (that a winding-up petition has been presented or a winding-up order made, or that a meeting has been called at which there is to be proposed a resolution for voluntary winding up, or that such a resolution has been passed); or

• (c) under section 346(2) (that the judgment debtor has been adjudged bankrupt); or

• (d) under section 346(3)(b) (that a bankruptcy petition has been presented in respect of him).

• (2) Subject as follows, the notice shall be in writing and be delivered by hand at, or sent by recorded delivery to, the office of the enforcement officer or (as the case may be) of the officer charged with the execution.

• (3) Where the execution is in a county court, and the officer in charge of it is the registrar of that court, then if—

• (a) there is filed in that court in respect of the judgment debtor a winding-up or bankruptcy petition, or

• (b) there is made by that court in respect of him a winding-up order or an order appointing a provisional liquidator, or a bankruptcy order or an order appointing an interim receiver,

section 184 or (as the case may be) 346 is deemed satisfied as regards the requirement of a notice to be served on, or given to, the officer in charge of the execution.

The Gazette

12.20

• (1) A copy of the Gazette containing any notice required by the Act or the Rules to be gazetted is evidence of any facts stated in the notice.

• (2) In the case of an order of the court notice of which is required by the Act or the Rules to be gazetted, a copy of the Gazette containing the notice may in any proceedings be produced as conclusive evidence that the order was made on the date specified in the notice.

• (3) Where an order of the court which is gazetted has been varied, and where any matter has been erroneously or inaccurately gazetted, the person whose responsibility it was to procure the requisite entry in the Gazette shall forthwith cause the variation of the order to be gazetted or, as the case may be, a further entry to be made in the Gazette for the purpose of correcting the error or inaccuracy.

Punishment of offences

12.21

• (1) Schedule 5 to the Rules has effect with respect to the way in which contraventions of the Rules are punishable on conviction.

• (2) In relation to an offence under a provision of the Rules specified in the first column of the Schedule (the general nature of the offence being described in the second column), the third column shows whether the offence is punishable on conviction on indictment, or on summary conviction, or either in the one way or the other.

• (3) The fourth column shows, in relation to an offence, the maximum punishment by way of fine or imprisonment which may be imposed on a person convicted of the offence in the way specified in relation to it in the third column (that is to say, on indictment or summarily), a reference to a period of years or months being to a term of imprisonment of that duration.

• (4) The fifth column shows (in relation to an offence for which there is an entry in that column) that a person convicted of the offence after continued contravention is liable to a daily default fine; that is to say, he is liable on a second or subsequent conviction of the offence to the fine specified in that column for each day on which the contravention is continued (instead of the penalty specified for the offence in the fourth column of the Schedule).

• (5) Section 431 (summary proceedings), as it applies to England and Wales, has effect in relation to offences under the Rules as to offences under the Act.

Notice of order under section 176A(5)

12.22

• (1) Where the court makes an order under section 176A(5), it shall as soon as reasonably practicable send two sealed copies of the order to the applicant and a sealed copy to any other insolvency practitioner who holds office in relation to the company.

• (2) Where the court has made an order under section 176A(5), the liquidator, administrator or receiver, as the case may be, shall, as soon as reasonably practicable, send a sealed copy of the order to the company.

• (3) Where the court has made an order under section 176A(5), the liquidator, administrator or receiver, as the case may be, shall as soon as reasonably practicable, give notice to each creditor of whose claim and address he is aware.

• (4) Paragraph (3) shall not apply where the court directs otherwise.

• (5) The court may direct that the requirement in paragraph (3) is complied with by the liquidator, administrator or receiver, as the case may be, publishing a notice in such newspaper as he thinks most appropriate for ensuring that it comes to the notice of the company’s unsecured creditors stating that the court has made an order disapplying the requirement to set aside the prescribed part.

• (6) The liquidator, administrator or receiver shall send a copy of the order to the registrar of companies as soon as reasonably practicable after the making of the order.

PART 13 — INTERPRETATION AND APPLICATION

Introductory

13.1

This Part of the Rules has effect for their interpretation and application; and any definition given in this Part applies except, and in so far as, the context otherwise requires.

“The court”; “the registrar”

13.2

• (1) Anything to be done under or by virtue of the Act or the Rules by, to or before the court may be done by, to or before a judge or the registrar.

• (2) The registrar may authorise any act of a formal or administrative character which is not by statute his responsibility to be carried out by the chief clerk or any other officer of the court acting on his behalf, in accordance with directions given by the Lord Chancellor.

• (3) In individual insolvency proceedings, “the registrar” means a Registrar in Bankruptcy of the High Court, or the registrar or deputy registrar of a county court.

• (4) In company insolvency proceedings in the High Court, “the registrar” means—

• (a) subject to the following paragraph, a Registrar in Bankruptcy of the High Court;

• (b) where the proceedings are in the District Registry of Birmingham, Bristol, Cardiff, Leeds, Liverpool, Manchester, Newcastle-upon-Tyne or Preston, the District Registrar.

• (5) In company insolvency proceedings in a county court, “the registrar” means the officer of the court whose duty it is to exercise the functions which in the High Court are exercised by a registrar.

“Give notice”, etc

13.3

• (1) A reference in the Rules to giving notice, or to delivering, sending or serving any document, means that the notice or document may be sent by post, unless under a particular Rule personal service is expressly required.

• (2) Any form of post may be used, unless under a particular Rule a specified form is expressly required.

• (3) Personal service of a document is permissible in all cases.

• (4) Notice of the venue fixed for an application may be given by service of the sealed copy of the application under Rule 7.4(3).

Notice, etc. to solicitors

13.4

Where under the Act or the Rules a notice or other document is required or authorised to be given to a person, it may, if he has indicated that his solicitor is authorised to accept service on his behalf, be given instead to the solicitor.

Notice to joint liquidators, joint trustees, etc

13.5

Where two or more persons are acting jointly as the responsible insolvency practitioner in any proceedings, delivery of a document to one of them is to be treated as delivery to them all.

“Venue”

13.6

References to the “venue” for any proceeding or attendance before the court, or for a meeting, are to the time, date and place for the proceeding, attendance or meeting.

“Insolvency proceedings”

13.7

“Insolvency proceedings” means any proceedings under the Act or the Rules.

“Insolvent estate”

13.8

References to “the insolvent estate” are—

• (a) in relation to a company insolvency, the company's assets, and

• (b) in relation to an individual insolvency, the bankrupt's estate or (as the case may be) the debtor's property.

“Responsible insolvency practitioner”, etc

13.9

• (1) In relation to any insolvency proceedings, “the responsible insolvency practitioner” means —

• (a) the person acting in a company insolvency, as supervisor of a voluntary arrangement under Part I of the Act, or as administrator, administrative receiver, liquidator or provisional liquidator;

• (b) the person acting in an individual insolvency, as the supervisor of a voluntary arrangement under Part VIII of the Act, or as trustee or interim receiver;

• (c) the official receiver acting as receiver and manager of a bankrupt's estate.

• (2) Any reference to the liquidator, provisional liquidator, trustee or interim receiver includes the official receiver when acting in the relevant capacity.

• (3) A reference to an “authorised person” is a reference to a person who is authorised pursuant to section 389A of the Act to act as nominee or supervisor of a voluntary arrangement proposed or approved under Part I or Part VIII of the Act.

“Petitioner”

13.10

In winding up and bankruptcy, references to “the petitioner” or “the petitioning creditor” include any person who has been substituted as such, or been given carriage of the petition.

“The appropriate fee”

13.11

“The appropriate fee” means—

• (a) in Rule 6.192(2) (payor under income payments order entitled to clerical etc. costs) or Rule 6.193C(4) (payor under income payments agreement entitled to clerical etc costs), 50 pence; and

• (b) in other cases, 15 pence per A4 or A5 page, and 30 pence per A3 page.

“Debt”, “liability” (winding up)

13.12

• (1) “Debt“, in relation to the winding up of a company, means (subject to the next paragraph) any of the following—

• (a) any debt or liability to which the company is subject at the date on which it goes into liquidation;

• (b) any debt or liability to which the company may become subject after that date by reason of any obligation incurred before that date; and

• (c) any interest provable as mentioned in Rule 4.93(1).

• (2) For the purposes of any provision of the Act or the Rules about winding up, any liability in tort is a debt provable in the winding up, if either—

• (a) the cause of action has accrued at the date on which the company goes into liquidation; or

• (b) all the elements necessary to establish the cause of action exist at that date except for actionable damage.

• (3) For the purposes of references in any provision of the Act or the Rules about winding up to a debt or liability, it is immaterial whether the debt or liability is present or future, whether it is certain or contingent, or whether its amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion; and references in any such provision to owing a debt are to be read accordingly.

• (4) In any provision of the Act or the Rules about winding up, except in so far as the context otherwise requires, “liability” means (subject to paragraph (3) above) a liability to pay money or money’s worth, including any liability under an enactment, any liability for breach of trust, any liability in contract, tort or bailment, and any liability arising out of an obligation to make restitution.

• (5) This Rule shall apply where a company is in administration and shall be read as if references to winding-up were a reference to administration.

Authorised deposit-taker and former authorised deposit-taker”

13.12A

• (1) “Authorised deposit-taker” means a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.

• (2) “Former authorised deposit-taker” means a person who—

• (a) is not an authorised deposit-taker,

• (b) was formerly an authorised institution under the Banking Act 1987, or a recognised bank or a licensed institution under the Banking Act 1979, and

• (c) continues to have liability in respect of any deposit for which it had a liability at a time when it was an authorised institution, recognised bank or licensed institution.

• (3) Paragraphs (1) and (2) must be read with—

• (a) section 22 of the Financial Services and Markets Act 2000;

• (b) any relevant order under that section; and

• (c) Schedule 2 to that Act.

Expressions used generally

13.13

• (1) “Business day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in any part of Great Britain under or by virtue of the Banking and Financial Dealings Act 1971 except in Rules 1.7., 4.10., 4.11., 4.16., 4.20., 5.10. and 6.23. where “business day” shall include any day which is a bank holiday in Scotland but not in England and Wales.

• (2) “The Department” means the Department for Business, Enterprise and Regulatory Reform.

• (3) “File in court and file with the court” means deliver to the court for filing.

• (4) “The Gazette” means the London Gazette.

• (5) “General regulations” means regulations made by the Secretary of State under Rule 12.1.

• (6) “Practice direction” means a direction as to the practice and procedure of any court within the scope of the CPR.

• (7) “Prescribed order of priority” means the order of priority of payments laid down by Chapter 20 of Part 4 of the Rules, or Chapter 23 of Part 6.

• (8) “Centre of main interests” has the same meaning as in the EC Regulation.

• (9) “Establishment” has the meaning given by Article 2(h) of the EC Regulation.

• (10) “Main proceedings” means proceedings opened in accordance with Article 3(1) of the EC Regulation and falling within the definition of insolvency proceedings in Article 2(a) of the EC Regulation and

• (a) in relation to England and Wales and Scotland set out in Annex A to the EC Regulation under the heading “United Kingdom”, and

• (b) in relation to another member State, set out in Annex A to the EC Regulation under the heading relating to that member State.

• (11) “Member State liquidator” means a person falling within the definition of liquidator in Article 2(b) of the EC Regulation appointed in proceedings to which it applies in a member State other than the United Kingdom.

• (12) “Secondary proceedings” means proceedings opened in accordance with Articles 3(2) and 3(3) of the EC Regulation and falling within the definition of winding-up proceedings in Article 2(c) of the EC Regulation, and

• (a) in relation to England and Wales and Scotland, set out in Annex B to the EC Regulation under the heading “United Kingdom”, and

• (b) in relation to another member State, set out in Annex B to the EC Regulation under the heading relating to that member State.

• (13) “Temporary administrator” means a temporary administrator referred to by Article 38 of the EC Regulation.

• (14) “Territorial proceedings” means proceedings opened in accordance with Articles 3(2) and 3(4) of the EC Regulation and falling within the definition of insolvency proceedings in Article 2(a) of the EC Regulation, and

• (a) in relation to England and Wales and Scotland, set out in Annex A to the EC Regulation under the heading “United Kingdom”, and

• (b) in relation to another member State, set out in Annex A to the EC Regulation under the heading relating to that member State.

• (5) “Prescribed part” has the same meaning as it does in section 176A(2)(a).

Application

13.14

• (1) Subject to paragraph (2) of this Rule, and save where otherwise expressly provided, the Rules apply—

• (a) to ... receivers appointed on or after the day on which the Rules come into force,

• (b) to bankruptcy proceedings where the bankruptcy petition is presented on or after the day on which the Rules come into force, and

• (c) to all other insolvency proceedings commenced on or after that day.

• (2) The Rules also apply to winding-up and bankruptcy proceedings commenced before that day to which provisions of the Act are applied by Schedule 11 to the Act, to the extent necessary to give effect to those provisions.

SCHEDULE 1 — SCHEME MANAGER'S VOTING RIGHTS

1

This Schedule applies as does Rule 4.72.

2

In relation to any meeting at which the scheme manager is under Rule 4.72 entitled to be represented, the scheme manager may submit in the liquidation, instead of a proof, a written statement of voting rights (“the statement”).

3

The statement shall contain details of—

• (a) the names of creditors of the company in respect of whom an obligation of the scheme manager has arisen or may reasonably be expected to arise as a result of the liquidation or proposed liquidation;

• (b) the amount of the obligation so arising; and

• (c) the total amount of all such obligations specified in the statement.

4

The scheme manager's statement shall, for the purpose of voting at a meeting (but for no other purpose), be treated in all respects as if it were a proof.

5

Any voting rights which a creditor might otherwise exercise at a meeting in respect of a claim against the company are reduced by a sum equal to the amount of that claim in relation to which the scheme manager, by virtue of its having submitted a statement, is entitled to exercise voting rights at that meeting.

6

The scheme manager may from time to time submit a further statement, and, if it does so, that statement supersedes any statement previously submitted.

SCHEDULE 2 — ALTERNATIVE COURTS FOR DEBTORS' PETITIONS IN BANKRUPTCY

Debtor’s own county court	Nearest full-time court
ABERDARE	CARDIFF
ABERYSTWYTH	CARDIFF
AYLESBURY	LUTON
BANBURY	LUTON or GLOUCESTER or READING
BANGOR	BIRKENHEAD or CHESTER
BARNSLEY	SHEFFIELD
BARNSTAPLE	EXETER
BARROW IN FURNESS	BLACKPOOL or PRESTON
BATH	BRISTOL
BEDFORD	LUTON
BLACKBURN	PRESTON
BLACKWOOD	CARDIFF
BOSTON	NOTTINGHAM
BRIDGEND	CARDIFF
BRIDGWATER	BRISTOL
BURNLEY	BOLTON or PRESTON
BURTON ON TRENT	LEICESTER or DERBY or NOTTINGHAM
BURY ST. EDMUNDS	CAMBRIDGE
CANTERBURY	CROYDON or THE HIGH COURT (LONDON)
CARLISLE	PRESTON or BLACKPOOL
CARMARTHEN	CARDIFF
CHELMSFORD	SOUTHEND or THE HIGH COURT (LONDON)
CHELTENHAM	GLOUCESTER
CHESTERFIELD	SHEFFIELD
COLCHESTER	SOUTHEND or THE HIGH COURT (LONDON)
COVENTRY	BIRMINGHAM
CREWE	STOKE or CHESTER
DARLINGTON	MIDDLESBROUGH
DEWSBURY	LEEDS
DONCASTER	SHEFFIELD
DUDLEY	BIRMINGHAM
DURHAM	NEWCASTLE
EASTBOURNE	BRIGHTON
GREAT GRIMSBY	HULL
GREAT YARMOUTH	NORWICH
GUILDFORD	CROYDON
HALIFAX	LEEDS
HARROGATE	LEEDS
HASTINGS	BRIGHTON
HAVERFORDWEST	CARDIFF
HEREFORD	GLOUCESTER
HERTFORD	LUTON
HUDDERSFIELD	LEEDS
IPSWICH	NORWICH or SOUTHEND
KENDAL	BLACKPOOL or PRESTON
KIDDERMINSTER	BIRMINGHAM
KING'S LYNN	NORWICH or CAMBRIDGE
LANCASTER	BLACKPOOL or PRESTON
LINCOLN	NOTTINGHAM
MACCLESFIELD	STOKE or MANCHESTER
MAIDSTONE	CROYDON or THE HIGH COURT (LONDON)
MEDWAY	CROYDON or THE HIGH COURT (LONDON)
MERTHYR TYDFIL	CARDIFF
MILTON KEYNES	LUTON
NEATH	CARDIFF
NEWBURY	READING
NEWPORT (GWENT)	CARDIFF
NEWPORT (I.O.W.)	SOUTHAMPTON or PORTSMOUTH
NORTHAMPTON	LUTON
OXFORD	READING
PETERBOROUGH	CAMBRIDGE
PONTYPRIDD	CARDIFF
PORTMADOC	BIRKENHEAD or STOKE or CHESTER
RHYL	BIRKENHEAD or CHESTER
ROCHDALE	OLDHAM or MANCHESTER
SALISBURY	BOURNEMOUTH or SOUTHAMPTON
SCARBOROUGH	YORK or HULL or MIDDLESBROUGH
SCUNTHORPE	HULL or SHEFFIELD
SHREWSBURY	STOKE
ST. ALBANS	LUTON
STAFFORD	STOKE
STOCKTON ON TEES	MIDDLESBROUGH
STOCKPORT	MANCHESTER
STOURBRIDGE	BIRMINGHAM
SUNDERLAND	NEWCASTLE
SWANSEA	CARDIFF
SWINDON	GLOUCESTER or READING
TAMESIDE	MANCHESTER
TAUNTON	EXETER or BRISTOL
TORQUAY	EXETER
TRURO	PLYMOUTH
TUNBRIDGE WELLS	CROYDON
WAKEFIELD	LEEDS
WARRINGTON	CHESTER or LIVERPOOL or MANCHESTER
WARWICK	BIRMINGHAM
WELSHPOOL	STOKE or CHESTER
WEST BROMWICH	BIRMINGHAM
WEYMOUTH	BOURNEMOUTH
WIGAN	BOLTON or MANCHESTER or PRESTON
WINCHESTER	SOUTHAMPTON
WORCESTER	GLOUCESTER
WORKINGTON	PRESTON or BLACKPOOL
WREXHAM	BIRKENHEAD or STOKE or CHESTER
YEOVIL	EXETER or BRISTOL

SCHEDULE 3 — SHORTHAND WRITERS' REMUNERATION

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 4 — FORMS