The Carbon Dioxide Transport and Storage (Licensed Operators) Administration (England and Wales) Rules 2025

All trade and other discounts which would have been available to the T&S company but for the T&S administration must be deducted from the claim, except a discount for immediate, early or cash settlement.

Mutual credits etc. and set off

55

• (1) This rule applies where the T&S administrator has delivered a notice under rule 69 (notice of a proposed distribution).

• (2) In this rule, “mutual dealings” means mutual credits, mutual debts or other mutual dealings between the T&S company and a creditor proving or claiming to prove for a debt in the T&S administration but does not include any of the following—

• (a) any debt arising out of an obligation incurred after the T&S company entered T&S administration;

• (b) any debt arising out of an obligation incurred at a time when the creditor had notice that—

• (i) an application under section 161 of the 2004 Act (permission to pass resolution for voluntary winding up) was pending,

• (ii) a petition for the winding up of the T&S company was pending,

• (iii) an application for an administration order under the 1986 Act was pending,

• (iv) an application for an T&S administration order was pending, or

• (v) any person had given notice of intention to appoint an administrator under the 1986 Act;

• (c) any debt which has been acquired by a creditor by assignment or otherwise, pursuant to an agreement between the creditor and any other party where that agreement was entered into—

• (i) at a time when the creditor had notice that an application under section 161 of the 2004 Act was pending,

• (ii) at a time when the creditor had notice that a petition for the winding up of the T&S company was pending,

• (iii) at a time when the creditor had notice that an application for an administration order under the 1986 Act was pending,

• (iv) at a time when the creditor had notice that an application for an T&S administration order was pending,

• (v) at a time when the creditor had notice that any person had given notice of intention to appoint an administrator under the 1986 Act, or

• (vi) after the T&S company entered T&S administration.

• (3) An account must be taken as at the date of the notice referred to in paragraph (1) of what is due from each party to the other in respect of the mutual dealings and the sums due from one party must be set off against the sums due from the other.

• (4) A sum must be treated as being due to or from the T&S company for the purposes of paragraph (3) whether—

• (a) it is payable at present or in the future,

• (b) the obligation by virtue of which it is payable is certain or contingent, or

• (c) its amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion.

• (5) Rule 53 applies for the purposes of this rule to any obligation to or from the T&S company which, by virtue of its being subject to any contingency or for any other reason, does not bear a certain value.

• (6) Rules 56 to 58 apply for the purposes of this rule in relation to any sums due to the T&S company which—

• (a) are payable in a currency other than sterling,

• (b) are of a periodical nature, or

• (c) bear interest.

• (7) Rule 82 applies for the purposes of this rule to any sum due to or from the T&S company which is payable in the future.

• (8) Only the balance (if any) of the account owed to the creditor is provable in the T&S administration.

• (9) Alternatively the balance (if any) owed to the T&S company must be paid to the T&S administrator as part of the assets except where all or part of the balance results from a contingent or prospective debt owed by the creditor and in such a case the balance, or that part of it which results from the contingent or prospective debt, must be paid if and when the debt becomes due and payable.

• (10) In this rule, “obligation” means an obligation however arising, whether by virtue of an agreement, rule of law or otherwise.

Debt in foreign currency

56

• (1) A proof for a debt incurred or payable in a currency other than sterling must state the amount of the debt in that currency.

• (2) The T&S administrator must convert all such debts into sterling at a single rate for each currency determined by the T&S administrator by reference to the exchange rates prevailing on the date on which the T&S company entered T&S administration.

• (3) On the next occasion when the T&S administrator communicates with the creditors the T&S administrator must advise them of any rate so determined.

• (4) A creditor who considers that the rate determined by the T&S administrator is unreasonable may apply to the court.

• (5) If, on hearing the application, the court finds that the rate is unreasonable it may itself determine the rate.

Payments of a periodical nature

57

• (1) In the case of rent and other payments of a periodical nature, the creditor may prove for any amounts due and unpaid up to the date on which the T&S company entered T&S administration.

• (2) Where at that date any payment was accruing due, the creditor may prove for so much as would have been due at that date, if accruing from day to day.

Interest

58

• (1) Where a debt proved in the T&S administration bears interest, that interest is provable as part of the debt except in so far as it is payable in respect of any period after the relevant date.

• (2) In the circumstances set out in this rule, the creditor’s claim may include interest on the debt for periods before the relevant date although not previously reserved or agreed.

• (3) If the debt is due by virtue of a written instrument, and payable at a certain time, interest may be claimed for the period from that time to the relevant date.

• (4) If the debt is due otherwise, interest may only be claimed if, before the relevant date, demand for payment of the debt was made in writing by or on behalf of the creditor, and notice was given that interest would be payable from the date of the demand to the date of payment.

• (5) Interest under paragraph (4) may only be claimed for the period from the date of the demand to the relevant date and, for the purposes of the 1986 Act and these Rules, must be charged at a rate not exceeding that mentioned in paragraph (6).

• (6) The rate of interest to be claimed under paragraphs (3) and (4) is the rate specified in section 17 of the Judgments Act 1838[^f00038] on the relevant date.

• (7) Any surplus remaining after payment of the debts proved must, before being applied for any other purpose, be applied in paying interest on those debts in respect of the periods during which they have been outstanding since the relevant date.

• (8) All interest payable under paragraph (7) ranks equally whether or not the debts on which it is payable rank equally.

• (9) The rate of interest payable under paragraph (7) is whichever is the greater of the rate specified under paragraph (6) and the rate applicable to the debt apart from the T&S administration.

• (10) In this rule, “relevant date” means the date on which the T&S company entered T&S administration.

Debt payable at future time

59

A creditor may prove for a debt of which payment was not yet due on the date when the T&S company entered T&S administration, subject to rule 82 (adjustment of dividend where payment made before time).

Voluntary surrender of security

60

A creditor who voluntarily surrenders a security may prove for the whole of the creditor’s debt as if it were unsecured.

Value of security

61

• (1) A secured creditor may, with the agreement of the T&S administrator or the permission of the court, at any time alter the value which the secured creditor’s proof puts upon the secured creditor’s security.

• (2) Where the secured creditor has voted in respect of the unsecured balance of the secured creditor’s debt and where revaluation is with the agreement of the T&S administrator, the T&S administrator must deliver a notice of the revaluation to the creditors within five business days after the office-holder’s agreement.

Surrender for non-disclosure

62

• (1) If a secured creditor fails to disclose a security in the secured creditor’s proof, the secured creditor must surrender that security for the general benefit of creditors, unless the court, on application by the secured creditor, relieves the secured creditor from the effect of this rule on the grounds that the omission was inadvertent or the result of honest mistake.

• (2) If the court grants that relief, it may require or allow the creditor’s proof to be amended, on such terms as may be just.

Redemption by T&S administrator

63

• (1) The T&S administrator may at any time deliver a notice to a creditor whose debt is secured that the T&S administrator proposes, at the expiration of 28 days from the date of the notice, to redeem the security at the value put upon it in the creditor’s proof.

• (2) The creditor may, within 21 days of the date of delivery of the notice (or such longer period as the T&S administrator may allow), alter the value of the creditor’s security in accordance with rule 61.

• (3) If the creditor alters the value of the security in accordance with rule 61, the T&S administrator may only redeem at the new value.

• (4) If the T&S administrator redeems the security, the cost of transferring it is payable as an expense out of the T&S company’s assets.

• (5) A secured creditor may at any time deliver a notice to the T&S administrator requiring the T&S administrator to elect whether or not to redeem the security at the value then placed on it.

• (6) The T&S administrator has three months from the date of delivery of a notice under paragraph (5) in which to redeem the security or elect not to redeem the security.

Test of security’s value

64

• (1) Paragraph (2) applies if the T&S administrator is dissatisfied with the value which a secured creditor puts on the creditor’s security, whether in the creditor’s proof or by way of revaluation under rule 61.

• (2) The T&S administrator may require any property comprised in the security to be offered for sale.

• (3) The terms of the sale must be such as may be agreed between the T&S administrator and the secured creditor, or as the court may direct.

• (4) If the sale is by auction, the T&S administrator on behalf of the T&S company, and the creditor on the creditor’s own behalf, may appear and bid.

• (5) This rule does not apply if the value of the security has been altered with the court’s permission.

Realisation of security by creditor

65

If a creditor who has valued the creditor’s security subsequently realises it, whether or not at the instance of the T&S administrator—

• (a) the net amount realised must be treated in all respects, including in relation to any valuation in a proof, as an amended valuation made by the creditor, and

• (b) the creditor may prove for the balance of the creditor’s debt.

CHAPTER 3 — Distributions

Distribution to creditors generally

66

• (1) This Chapter applies where the T&S administrator makes, or proposes to make, a distribution to any class of creditors other than secured creditors.

• (2) Where the distribution is to a particular class of creditors, a reference in this Chapter to creditors is, in so far as the context requires, a reference to that class of creditors only.

Debts of insolvent T&S company to rank equally

67

Debts other than preferential debts rank equally between themselves in the T&S administration and, after the preferential debts, must be paid in full unless the assets are insufficient for meeting them, in which case they abate in equal proportions between themselves.

Supplementary provisions as to dividend

68

• (1) In the calculation and distribution of a dividend the T&S administrator must make provision for each of the following—

• (a) any debts which appear to the T&S administrator to be due to persons who, by reason of the distance of their place of residence, may not have had sufficient time to tender and establish their proofs;

• (b) any debts which are the subject of claims which have not yet been determined;

• (c) disputed proofs and claims.

• (2) A creditor who has not proved the creditor’s debt before the declaration of any dividend is not entitled to disturb, by reason that the creditor has not participated in it, the distribution of that dividend or any other dividend declared before the creditor’s debt was proved, but—

• (a) when the creditor has proved that debt the creditor is entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend which the creditor has failed to receive;

• (b) any dividend payable under sub-paragraph (a) must be paid before the money is applied to the payment of any such further dividend.

• (3) No action lies against the T&S administrator for a dividend, but if the T&S administrator refuses to pay a dividend the court may, if it thinks just, order the T&S administrator to pay it and also to pay, out of the T&S administrator’s own money—

• (a) interest on the dividend, at the rate for the time being specified in section 17 of the Judgments Act 1838, from the time when it was withheld, and

• (b) the costs of the proceedings in which the order to pay is made.

Notice of proposed distribution

69

• (1) Where the T&S administrator proposes to make a distribution to creditors or declare a dividend, the T&S administrator must give notice of this.

• (2) The notice must—

• (a) be delivered to all creditors whose addresses are known to the T&S administrator;

• (b) state whether the proposed distribution or dividend is—

• (i) to preferential creditors, or

• (ii) preferential creditors and unsecured creditors;

• (c) state that it is the intention of the T&S administrator to make a distribution to creditors or declare a dividend (as the case may be) within the period of two months from the last date for proving;

• (d) specify whether the proposed distribution or dividend is interim or final;

• (e) specify the last date by which proofs may be delivered, which must be—

• (i) the same date for all creditors, and

• (ii) not less than 21 days from the date of the notice;

• (f) specify the place to which proofs must be delivered;

• (g) include the additional information required by rule 70 where the T&S administrator intends to treat a small debt as proved for the purposes of paying a dividend;

• (h) where the T&S administrator proposes to declare a dividend to unsecured creditors, state the value of the prescribed part, unless there is no prescribed part or the court has made an order under section 176A(5) of the 1986 Act.

• (3) Subject to paragraph (4)(b), a copy of the notice—

• (a) must be gazetted;

• (b) may be advertised in such other manner as the T&S administrator thinks fit.

• (4) Where the proposed dividend is only to preferential creditors—

• (a) the notice need only be delivered to those creditors in whose cases the T&S administrator has reason to believe that their debts are preferential;

• (b) the notice need only be gazetted if the T&S administrator thinks fit.

Further contents of notice to creditors owed small debts, etc.

70

• (1) The T&S administrator may treat a debt, which is a small debt according to the accounting records or the statement of affairs of the T&S company, as if it were proved for the purposes of paying a dividend.

• (2) Where the T&S administrator intends to treat such a debt as if it were proved, the notice delivered under rule 69 must also—

• (a) state the amount of the debt which the T&S administrator believes to be owed to the creditor according to the accounting records or statement of affairs of the T&S company;

• (b) state that the T&S administrator will treat the debt which is stated in the notice, being for £1,000 or less, as proved for the purposes of paying a dividend unless the creditor advises the T&S administrator that the amount of the debt is incorrect or that no debt is owed;

• (c) require the creditor to notify the T&S administrator by the last date for proving if the amount of the debt is incorrect or if no debt is owed;

• (d) inform the creditor that where the creditor advises the T&S administrator that the amount of the debt is incorrect the creditor must also submit a proof in order to receive a dividend.

• (3) The information required by paragraph (2)(a) may take the form of a list of small debts which the T&S administrator intends to treat as proved which includes the debt owed to the particular creditor to whom the notice is being delivered.

Sole or final dividend

71

• (1) Where it is intended that the distribution is to be a sole or final dividend, the T&S administrator must, after the last date for proving set out in the notice under rule 69—

• (a) pay any sums payable in accordance with the provisions of paragraph 99 of Schedule B1 to the 1986 Act,

• (b) pay any sums (including any debts or liabilities and the T&S administrator’s own remuneration and expenses) which would, if the T&S administrator were to cease to be the T&S administrator of the T&S company, be payable out of the property of which the T&S administrator had custody or control in accordance with the provisions of paragraph 99 of Schedule B1 to the 1986 Act, and

• (c) declare and distribute that dividend without regard to the claim of any person in respect of a debt not already proved.

• (2) The reference in paragraph (1)(c) to debts that have not been proved does not include small debts treated as proved by the T&S administrator.

• (3) The court may, on the application of any person, postpone the date specified in the notice as the last date for proving.

Admission or rejection of proofs following last date for proving

72

• (1) Unless the T&S administrator has already dealt with them, the T&S administrator must within 14 days of the last date for proving set out in the notice under rule 69—

• (a) admit or reject, in whole or in part, proofs delivered to the T&S administrator, or

• (b) make such provision in respect of them as the T&S administrator thinks fit.

• (2) The T&S administrator is not obliged to deal with a proof delivered after the last date for proving, but may do so, if the T&S administrator thinks fit.

• (3) In the declaration of a dividend a payment must not be made more than once in respect of the same debt.

Postponement or cancellation of dividend

73

• (1) If paragraph (2) applies, the T&S administrator may postpone or cancel a dividend.

• (2) This paragraph applies if, in the two-month period referred to in rule 69(2)(c) an application is made to the court for the T&S administrator’s decision on a proof to be reversed or varied, or for a proof to be excluded, or for a reduction of the amount claimed.

• (3) Where the dividend is postponed or cancelled a new notice under rule 69 will be required if the dividend is paid subsequently.

Declaration of dividend

74

• (1) The T&S administrator must proceed to declare the dividend of which the T&S administrator gave notice under rule 69 within the two-month period referred to in rule 69(2)(c), unless—

• (a) the dividend is postponed or cancelled in accordance with rule 73, or

• (b) paragraph (2) applies.

• (2) The T&S administrator must not declare a dividend so long as there is pending any application to the court to—

• (a) reverse or vary a decision of the T&S administrator on a proof,

• (b) exclude a proof, or

• (c) reduce the amount claimed.

• (3) The court may give permission for the T&S administrator to declare a dividend even where paragraph (2) applies.

• (4) Where the court gives permission under paragraph (3), the T&S administrator must make such provision in respect of the proof in question as the court directs.

Notice of declaration of a dividend

75

• (1) Where the T&S administrator declares a dividend, the T&S administrator must deliver notice to all creditors who have proved their debts.

• (2) The notice must include the following relating to the T&S administration—

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

• (b) payments made by the T&S administrator when acting as such;

• (c) where the T&S administrator proposed to make a distribution to unsecured creditors, the value of the prescribed part, unless there is no prescribed part or the court has made an order under section 176A(5) of the 1986 Act;

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

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

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

Payments of dividends and related matters

76

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

• (2) Payment of the dividend may be made by post, or arrangements may be made with any creditor for it to be paid to the creditor in another way, or held for the creditor’s collection.

Notice of no dividend, or no further dividend

77

• (1) If the T&S administrator delivers notice to creditors that the T&S administrator is unable to declare any dividend or any further dividend (as the case may be), the notice must 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 paying the expenses of T&S administration.

• (2) The information required by paragraph (2) may be included in a progress report (see rule 26).

Proof altered after payment of dividend

78

• (1) Paragraph (2) applies if, after payment of a dividend, the amount claimed by a creditor in the creditor’s proof is increased.

• (2) Where this paragraph applies, the creditor is not entitled to disturb the distribution of the dividend but is entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend which the creditor has failed to receive.

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

• (4) If, after a creditor’s proof has been admitted, the proof is withdrawn or excluded, or the amount is reduced, the creditor is liable to repay to the T&S administrator, for the credit of the T&S administration, any amount overpaid by way of dividend.

Secured creditors

79

• (1) Paragraphs (2) to (4) apply where a creditor alters the value of the creditor’s security at a time when a dividend has been declared.

• (2) If the alteration results in a reduction of the creditor’s unsecured claim ranking for dividend, the creditor must as soon as reasonably practicable repay to the T&S administrator, for the credit of the T&S administration, any amount received by the creditor as dividend in excess of that to which the creditor would be entitled having regard to the alteration of the value of the security.

• (3) If the alteration results in an increase of the creditor’s unsecured claim, the creditor is entitled to receive from the T&S administrator, 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 which the creditor has failed to receive, having regard to the alteration of the value of the security.

• (4) The creditor is not entitled to disturb any dividend declared, whether or not distributed, before the date of the alteration.

Disqualification from dividend

80

If a creditor contravenes any provision of the 1986 Act or these Rules relating to the valuation of securities, the court may, on the application of the T&S administrator, order that the creditor be wholly or partly disqualified from participation in any dividend.

Assignment of right to dividend

81

• (1) If a person entitled to a dividend (a “relevant person”) delivers notice to the T&S administrator that the relevant person wishes the dividend to be paid to another person, or that the relevant person has assigned the entitlement to another person, the T&S administrator must pay the dividend to that other person accordingly.

• (2) A notice under paragraph (1) must specify the name and address of the person to whom payment is to be made.

Adjustment where dividend paid before time

82

• (1) Where a creditor has proved for a debt of which payment is not due at the date of the declaration of a dividend, the creditor is entitled to the 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 the creditor, the amount remaining outstanding in respect of the creditor’s admitted proof) is to be reduced by applying the following formula—

$$Amount £=C×106%±D%-6%3$ where— “x” is the value of the admitted proof, and “n” is the period beginning with the date on which the T&S company entered T&S administration and ending with the date on which the payment of the creditor’s debt would otherwise be due expressed in years (part of a year being expressed as a decimal fraction of a year).$

Division of unsold assets

83

• (1) The T&S administrator may divide qualifying property in its existing form amongst the creditors of the T&S company—

• (a) according to its estimated value, and

• (b) with the permission of the creditors.

• (2) In paragraph (1), “qualifying property” is any property which from its peculiar nature or other special circumstances cannot be readily or advantageously sold.

• (3) The T&S administrator must—

• (a) in the receipts and payments account included in the progress report under rule 26, state the estimated value of the property divided amongst the creditors of the T&S company under paragraph (1) during the period to which the report relates, and

• (b) as a note to the account, provide details of the basis of the valuation.

PART 8 — The T&S administrator

Fixing of remuneration

84

• (1) The T&S administrator is entitled to receive remuneration for services as T&S administrator.

• (2) The remuneration must be fixed by reference to the time properly given by the T&S administrator and the T&S administrator’s staff in attending to matters arising in the T&S administration.

• (3) The T&S administrator must make an application to court for the remuneration to be fixed by the court.

• (4) The T&S administrator must deliver at least 14 days’ notice of the T&S administrator’s application to the following, who may appear or be represented—

• (a) the Secretary of State;

• (b) the Gas and Electricity Markets Authority;

• (c) the creditors of the T&S company.

• (5) In fixing the remuneration, the court must have regard to the following matters—

• (a) the complexity (or otherwise) of the case;

• (b) any respects in which, in connection with the T&S company’s affairs, there falls on the T&S administrator any responsibility of an exceptional kind or degree;

• (c) the effectiveness with which the T&S administrator appears to be carrying out, or to have carried out, the T&S administrator’s duties as such;

• (d) the value and nature of the property with which the T&S administrator has to deal.

• (6) Where there are joint T&S administrators, it is for them to agree between themselves how the remuneration payable should be apportioned.

• (7) Any dispute arising between joint T&S administrators in connection with paragraph (6) may be referred to the court for settlement by order.

• (8) If the T&S administrator is a solicitor and employs the T&S administrator’s own firm, or any partner in it, to act on behalf of the T&S company, profit costs must not be paid unless this is authorised by the court.

Remuneration of new T&S administrator

85

If a new T&S administrator is appointed in place of another, any court order in effect under rule 84 immediately before the former T&S administrator ceased to hold office continues to apply in respect of the remuneration of the new T&S administrator until a further court order is made in accordance with those provisions.

PART 9 — Ending T&S administration

Interpretation: final progress reports, etc.

86

In this Part—

• “final progress report” means a progress report which includes a summary of— the T&S administrator’s proposals, any major amendments to, or deviations from, those proposals, the steps taken during the T&S administration, and the outcome;

• “progress report” means a report which complies with rule 26.

Application to court

87

• (1) An application to court under paragraph 79 of Schedule B1 to the 1986 Act[^f00039] for an order ending a T&S administration must have attached to it—

• (a) a progress report for the period since—

• (i) the last progress report (if any), or

• (ii) if there has been no previous progress report, the date on which the T&S company entered T&S administration, and

• (b) a statement indicating what the applicant thinks should be the next steps for the T&S company (if applicable).

• (2) Where such an application is made, the applicant must—

• (a) at least five business days before the application is made, deliver notice of the applicant’s intention to apply to court to the following—

• (i) the person who made the application for the T&S administration order (unless the applicant in both cases is the same);

• (ii) the creditors of the T&S company;

• (b) attach to the application to court a statement that notice has been delivered to the creditors, and copies of any response from creditors to that notice.

• (3) Where such an application is made other than by the T&S administrator—

• (a) the applicant must also, at least five business days before the application is made, deliver notice to the T&S administrator of the applicant’s intention to apply to court;

• (b) upon receipt of such notice the T&S administrator must, before the end of the five business day notice period, provide the applicant with a progress report for the period since the last progress report (if any) or the date the T&S company entered T&S administration.

• (4) Where the application is made other than by the Secretary of State, the application—

• (a) may only be made with the consent of the Secretary of State, and

• (b) must state it is made with the consent of the Secretary of State.

• (5) Where the T&S administrator applies to court under paragraph 79 of Schedule B1 to the 1986 Act in conjunction with a petition under section 124 of the 1986 Act[^f00040] for an order to wind up the T&S company, the notice to creditors under paragraph (2)(a)(ii) must also state whether the T&S administrator intends to seek appointment as liquidator.

Notification by T&S administrator of court order

88

• (1) Where the court makes an order to end the T&S administration, it must, where the applicant is not the T&S administrator, deliver a copy of the order to the T&S administrator.

• (2) The T&S administrator must as soon as reasonably practicable deliver a copy of the order and a copy of the final progress report to—

• (a) the registrar of companies,

• (b) the directors of the T&S company, and

• (c) the Secretary of State, the Gas and Electricity Markets Authority and all those persons to whom notice of the T&S administrator’s appointment was delivered.

Moving from T&S administration to creditors’ voluntary liquidation

89

• (1) Where, for the purposes of paragraph 83(3) of Schedule B1 to the 1986 Act, the T&S administrator delivers to the registrar of companies a notice of moving from T&S administration to creditors’ voluntary liquidation, the notice must include the name and IP number of the proposed liquidator.

• (2) The notice to the registrar of companies must be accompanied by a copy of the T&S administrator’s final progress report, which must include details of the assets to be dealt with in the liquidation.

• (3) As soon as reasonably practicable after delivery of the notice to the registrar of companies, the T&S administrator must deliver—

• (a) a copy of the notice and final progress report to the Secretary of State, the Gas and Electricity Markets Authority and all those persons to whom notice of the T&S administrator’s appointment was delivered, and

• (b) a copy of the final progress report with any other copy of the notice that is sent as required by paragraph 83(5)(b) of Schedule B1 to the 1986 Act.

• (4) For the purposes of paragraph 83(7)(a) of Schedule B1 to the 1986 Act, a person is nominated as liquidator in accordance with rule 21(8) and (9) or 25(3)(e) and that person’s appointment takes effect following registration under paragraph (1) of this rule—

• (a) by virtue of the T&S administrator’s proposals or revised proposals, or

• (b) following a decision sought by the T&S administrator under rule 29.

• (5) The Gas and Electricity Markets Authority must notify the Secretary of State before consenting to the T&S administrator delivering a notice of moving from T&S administration to creditors’ voluntary liquidation to the registrar of companies.

Moving from T&S administration to dissolution

90

• (1) Where, for the purposes of paragraph 84(1) of Schedule B1 to the 1986 Act[^f00041], the T&S administrator delivers to the registrar of companies a notice of moving from T&S administration to dissolution, the T&S administrator must attach to that notice a final progress report.

• (2) As soon as reasonably practicable after delivering the notice to the registrar of companies, the T&S administrator must deliver—

• (a) a copy of the notice and final progress report to the Secretary of State, the Gas and Electricity Markets Authority and all those persons to whom notice of the T&S administrator’s appointment was delivered, and

• (b) a copy of the final progress report with any other copy of the notice that is sent as required by paragraph 84(5)(b) of Schedule B1 to the 1986 Act.

• (3) Where a court makes an order under paragraph 84(7) of Schedule B1 to the 1986 Act it must, where the applicant is not the T&S administrator, deliver a copy of the order to the T&S administrator.

• (4) The T&S administrator must deliver a copy of the order to the registrar of companies with the notice required by paragraph 84(8) of Schedule B1 to the 1986 Act.

• (5) The Gas and Electricity Markets Authority must notify the Secretary of State before directing the T&S administrator to deliver a notice of moving from T&S administration to dissolution to the registrar of companies.

Provision of information to the Secretary of State

91

• (1) Paragraph (2) applies where the T&S administration ends pursuant to paragraph 79, 83 or 84 of Schedule B1 to the 1986 Act.

• (2) The T&S administrator must, at the same time as delivering the final progress report to the Secretary of State under rule 88(2), 89(3) or 90(2), provide the Secretary of State with the following information—

• (a) a breakdown of the relevant debts of the T&S company which remain outstanding, and

• (b) details of any shortfall in the property of the T&S company available for meeting the relevant debts.

• (3) In paragraph (2), “relevant debts” means an obligation to do any of the following—

• (a) to make payments in respect of the expenses or remuneration of any person as T&S administrator of the T&S company (“the company”);

• (b) to make payment in discharge of a debt or liability of the company arising out of a contract entered into at a time when the T&S administration order was in force by the person who at that time was the T&S administrator of the company;

• (c) to repay the whole or any part of a grant made to the company under section 165 of the 2004 Act as applied by section 33 of the 2022 Act;

• (d) to repay a loan made to the company under section 165 of the 2004 Act (as applied by section 33 of the 2022 Act), or to pay interest on such a loan;

• (e) to make a payment under section 166(4) of the 2004 Act (as applied by section 33 of the 2022 Act);

• (f) to make a payment under section 167(5) of the 2004 Act (as applied by section 33 of the 2022 Act).

• (4) In paragraph (2)(b)—

• (a) a “shortfall” arises if, in a case where the company is or has been subject to a T&S administration order, the property available (apart from conditions falling within section 35(1) and (5) of the 2022 Act) for meeting relevant debts is insufficient for meeting them, and

• (b) amounts are applied in making good that shortfall if they are paid in or towards discharging so much of a relevant debt as cannot be met out of the property otherwise available for meeting relevant debts.

PART 10 — Replacing the T&S administrator

Grounds for resignation

92

• (1) The T&S administrator may resign—

• (a) on the grounds of ill health,

• (b) because the T&S administrator intends ceasing to be in practice as an insolvency practitioner, or

• (c) because there is some conflict of interest, or a change in personal circumstances, which prevents or makes impracticable the further discharge by the T&S administrator of the duties of T&S administrator.

• (2) The T&S administrator may, with the permission of the court, resign on grounds other than those specified in paragraph (1).

Notice of intention to resign

93

• (1) The T&S administrator must give at least five business days’ notice of the T&S administrator’s intention—

• (a) to resign in a case falling within rule 92(1);

• (b) to apply for the court’s permission to resign in a case falling within rule 92(2).

• (2) The notice must be delivered—

• (a) to the Secretary of State;

• (b) to the Gas and Electricity Markets Authority;

• (c) if there is a continuing T&S administrator of the T&S company, to that continuing T&S administrator;

• (d) if there is no such T&S administrator, to the T&S company and its creditors, including any floating charge holders;

• (e) to the Health and Safety Executive;

• (f) to the Oil and Gas Authority;

• (3) The notice must—

• (a) be headed “Notice of intention to resign as T&S administrator”;

• (b) include immediately below the heading—

• (i) the full name, registered address, registered number and any other trading names of the T&S company;

• (ii) details of the court where the proceedings are and the court reference number.

• (4) The notice must also include—

• (a) the date of the appointment of the T&S administrator;

• (b) the name of the person who made the T&S administration application;

• (c) in a case falling within rule 92(1), the date with effect from which the T&S administrator intends to resign;

• (d) in a case falling within rule 92(2), the date on which the T&S administrator intends to file with the court an application for permission to resign.

• (5) The notice must be accompanied by a summary of the T&S administrator’s receipts and payments.

Notice of resignation to court under the 1986 Act, Schedule B1, paragraph 87(2)

94

• (1) Notice of resignation under paragraph 87(2) of Schedule B1 to the 1986 Act[^f00042] must be given by filing the notice with the court.

• (2) Within five business days of filing the notice of resignation with the court, the T&S administrator must deliver a copy of the notice to—

• (a) the registrar of companies, and

• (b) all persons to whom notice of intention to resign was delivered under rule 93.

• (3) The notice of resignation must—

• (a) be headed “Notice of resignation by T&S administrator”;

• (b) include immediately below the heading—

• (i) the full name, registered address, registered number and any other trading names of the T&S company;

• (ii) details of the court where the proceedings are and the court reference number.

• (4) The notice must also state—

• (a) the date of the appointment of the T&S administrator;

• (b) the name of the person who made the T&S administration application;

• (c) the date from which the resignation is to have effect;

• (d) where the resignation is with the permission of the court, the date on which permission was given.

Application to court to remove T&S administrator from office

95

• (1) An application for an order under paragraph 88 of Schedule B1 to the 1986 Act that the T&S administrator be removed from office must state the grounds on which the order is requested.

• (2) A copy of the application must be delivered, not less than five business days before the date fixed for the hearing—

• (a) to the T&S administrator;

• (b) to the Secretary of State;

• (c) to the Gas and Electricity Markets Authority;

• (d) to the joint T&S administrator (if any);

• (e) where there is not a joint T&S administrator, to the T&S company and its creditors, including any floating charge holders;

• (f) to the Health and Safety Executive;

• (g) to the Oil and Gas Authority.

• (3) Where the court makes an order removing the T&S administrator it must deliver a copy of the order to the applicant.

• (4) Following receipt of a copy of the order, the applicant must deliver a copy of the order—

• (a) as soon as reasonably practicable, to the T&S administrator, and

• (b) within five business days, to—

• (i) the registrar of companies, and

• (ii) all persons to whom a copy of the application was delivered under paragraph (2).

Notice of vacation of office when T&S administrator ceases to be qualified to act

96

A T&S administrator who has ceased to be qualified to act as an insolvency practitioner in relation to the T&S company and gives notice in accordance with paragraph 89 of Schedule B1 to the 1986 Act[^f00043] must also deliver notice to—

• (a) the Secretary of State;

• (b) the Gas and Electricity Markets Authority;

• (c) the registrar of companies;

• (d) the Health and Safety Executive;

• (e) the Oil and Gas Authority.

T&S administrator deceased

97

• (1) If the T&S administrator dies, a notice of the fact and date of death must be filed with the court.

• (2) The notice must be filed as soon as reasonably practicable by one of the following—

• (a) a surviving T&S administrator;

• (b) a member of the deceased T&S administrator’s firm, if the deceased was a member or employee of a firm;

• (c) an officer of the deceased T&S administrator’s company, if the deceased was an officer or employee of a company;

• (d) a personal representative of the deceased T&S administrator.

• (3) If such a notice has not been filed within the 21 days following the T&S administrator’s death then any other person may file the notice.

• (4) The person who files the notice must also deliver a notice to the registrar of companies which contains—

• (a) the date of the appointment of the T&S administrator;

• (b) the fact and date of death.

• (5) The person who files the notice must also deliver a copy of it to—

• (a) the Secretary of State;

• (b) the Gas and Electricity Markets Authority;

• (c) the Health and Safety Executive;

• (d) the Oil and Gas Authority.

Application to replace

98

• (1) Where an application is made to court under paragraph 91(1) of Schedule B1 to the 1986 Act to appoint a replacement T&S administrator, the application must be accompanied by a statement in accordance with rule 6 by the person proposed to be the replacement T&S administrator.

• (2) In addition to those persons referred to in section 156(2) of the 2004 Act and rule 9(3), the applicant must deliver a copy of the application to the person who made the application for the T&S administration order.

• (3) Rule 159 applies to the service of an application under paragraph 91(1) of Schedule B1 to the 1986 Act as it applies to service of an application for an T&S administration order.

• (4) Rules 11 and 12 apply to an application under paragraph 91(1) of Schedule B1 to the 1986 Act as they apply to an application for an T&S administration order.

Appointment of replacement or additional T&S administrator

99

Where a replacement T&S administrator is appointed or an additional T&S administrator is appointed as a joint T&S administrator—

• (a) rule 13 applies,

• (b) the replacement or additional T&S administrator must deliver notice of the appointment to the registrar of companies, and

• (c) all documents must clearly identify the appointment of a replacement T&S administrator or an additional T&S administrator appointed as a joint T&S administrator.

T&S administrator’s duties on vacating office

100

• (1) A T&S administrator who ceases to be in office as such, in consequence of removal, resignation or ceasing to be qualified to act as an insolvency practitioner, must as soon as reasonably practicable deliver to the person succeeding as T&S administrator—

• (a) the assets, after deduction of any expenses properly incurred and distributions made by the departing T&S administrator,

• (b) the records of the T&S administration, including correspondence, proofs and other documents relating to the T&S administration while it was within the responsibility of the departing T&S administrator, and

• (c) the T&S company’s books, papers and other records.

• (2) It is an offence for the T&S administrator to fail to comply with paragraph (1).

PART 11 — Court Procedure and Practice

CHAPTER 1 — Applications

Preliminary

101

This Chapter applies to any application made to the court in T&S administration proceedings, except an application for a T&S administration order.

Contents of application

102

• (1) Each application must state—

• (a) that the application is made under the 1986 Act or these Rules (as applicable);

• (b) the section of the 1986 Act, or paragraph of a Schedule to the 1986 Act, or the number of the rule under which it is made (as the case may be);

• (c) the names of the parties;

• (d) the name of the T&S company which is the subject of the T&S administration proceedings;

• (e) the court (and where applicable, the division or district registry of that court) in which the application is made;

• (f) where the court has previously allocated a number to the T&S administration proceedings within which the application is made, that number;

• (g) the nature of the remedy or order applied for or the directions sought from the court;

• (h) the names and addresses of the persons on whom it is intended to serve the application or that no person is intended to be served;

• (i) where the 1986 Act or these Rules require that notice of the application is to be delivered to specified persons, the names and addresses of all those persons so far as known to the applicant;

• (j) the applicant’s address for service.

• (2) The application must be authenticated by the applicant if the applicant is acting in person or, when the applicant is not so acting, by or on behalf of the applicant’s solicitor.

Application under section 176A(5) of the 1986 Act to disapply section 176A of the 1986 Act

103

• (1) An application under section 176A(5) of the 1986 Act must be accompanied by a witness statement by the T&S administrator.

• (2) The witness statement must—

• (a) state that the application arises in the course of a T&S administration;

• (b) contain a summary of the financial position of the T&S company;

• (c) contain the information substantiating the T&S administrator’s view that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits.

• (3) An application under section 176A(5) of the 1986 Act may be made without the application being served upon or notification to any other party.

Notice of order under section 176A(5) of the 1986 Act

104

• (1) Where the court makes an order under section 176A(5) of the 1986 Act, it must as soon as reasonably practicable deliver two sealed copies of the order to the T&S administrator.

• (2) Where the court has made an order under section 176A(5) of the 1986 Act, the T&S administrator must as soon as reasonably practicable deliver notice of the order to each creditor of whose address and claim the T&S administrator is aware.

• (3) The court may direct that the requirement in paragraph (2) is complied with if a notice is published by the T&S administrator which, in addition to containing the contents required by Chapter 4 of Part 13, states that the court has made an order disapplying the requirement to set aside the prescribed part.

• (4) As soon as reasonably practicable a notice under paragraph (3)—

• (a) must be gazetted;

• (b) may be advertised in such other manner as the T&S administrator thinks fit.

• (5) The T&S administrator must deliver a copy of the order to the registrar of companies as soon as reasonably practicable after the making of the order.

Filing and service of application

105

• (1) An application filed with the court in hard copy form must be accompanied by one copy and a number of additional copies equal to the number of persons who are to be served with the application.

• (2) Where an application is filed with the court, the court must fix a venue for the application to be heard unless—

• (a) it considers it is not appropriate to do so,

• (b) the rule under which the application is brought provides otherwise, or

• (c) the case is one to which rule 106 applies.

• (3) The applicant must serve a sealed copy of the application, endorsed with the venue for the hearing, on the respondent named in the application unless the court directs, or these Rules provide, otherwise.

• (4) The court may also give one or more of the following directions—

• (a) that the application be served upon persons other than those specified by the relevant provision of the 1986 Act or these Rules;

• (b) that service upon any person may be dispensed with;

• (c) that such persons be notified of the application and venue in such other a way as the court specifies;

• (d) such other directions as the court sees fit.

• (5) A sealed copy of the application must be served at least 14 days before the date fixed for its hearing unless—

• (a) the provision of the 1986 Act or these Rules under which the application is made makes different provision, or

• (b) the case is one to which paragraph (6) applies (urgency).

• (6) Where the case is one of urgency, the court may (without limiting its general power to extend or abridge time limits)—

• (a) hear the application immediately, either with or without notice to, or the attendance of, other parties, or

• (b) authorise a shorter period of service than that provided for by paragraph (5);

and any such application may be heard on terms providing for the filing or service of documents, or the carrying out of other formalities, as the court thinks just.

Hearings without notice

106

Where the provisions of the 1986 Act or these Rules do not require service of the application on, or notice of it to be delivered to, any person, the court may—

• (a) hear the application as soon as reasonably practicable without fixing a venue,

• (b) fix a venue for the application to be heard, in which case rule 105 applies to the extent that it is relevant, or

• (c) determine the application without a hearing,

but nothing in those provisions is to be taken as prohibiting the applicant from giving such notice if the applicant wishes to do so.

Hearing of application

107

• (1) In the High Court, the jurisdiction of the court to hear and determine an application may be exercised by an Insolvency and Companies Court Judge or District Judge of the High Court, to whom any application must be made in the first instance, unless—

• (a) a direction to the contrary has been given, or

• (b) it is not within the Judge’s power to make the order required.

• (2) Where the application is made to an Insolvency and Companies Court Judge or District Judge of the High Court, that Judge may refer to a High Court Judge any matter which the Insolvency and Companies Court Judge or District Judge of the High Court thinks should properly be decided by a High Court Judge.

• (3) Following a reference under paragraph (2) the High Court Judge may either dispose of the matter or refer it back to the Insolvency and Companies Court Judge or District Judge of the High Court with such directions as the High Court Judge thinks just.

• (4) Nothing in this rule precludes an application being made directly to a High Court Judge in a proper case.

Witness statements

108

• (1) Where evidence is required by the 1986 Act or these Rules as to any matter, such evidence may be given by witness statement unless—

• (a) in any specific case a rule or the 1986 Act makes different provision, or

• (b) the court otherwise directs.

• (2) Paragraph (1) is subject to rule 109 (use of reports).

• (3) Unless the provisions of the 1986 Act or these Rules under which the application is made provide otherwise, or the court otherwise directs—

• (a) if the applicant intends to rely at the first hearing on evidence in a witness statement, the applicant must file the witness statement with the court and serve a copy on the respondent, not less than 14 days before the date fixed for the hearing, and

• (b) where a respondent to an application intends to oppose it and rely for that purpose on evidence in a witness statement, the respondent must file the witness statement with the court and serve a copy on the applicant, not less than five business days before the date fixed for the hearing.

• (4) The court may, on the application of any party to the matter in question, order the attendance for cross-examination of the person making the witness statement.

• (5) Where, after such an order has been made, the person in question does not attend, that person’s witness statement must not be used in evidence without the permission of the court.

Use of reports

109

• (1) A report may be filed in court by the T&S administrator instead of a witness statement, unless the application involves other parties or the court otherwise directs.

• (2) In any case where a report is filed instead of a witness statement, the report is to be treated for the purposes of rule 108 and any hearing before the court as if it were a witness statement.

Directions and adjournment

110

• (1) The court may at any time give such directions as it thinks just as to the following—

• (a) service or notice of the application on or to any other person;

• (b) whether the application is to be served and generally the procedure on the application, including whether a hearing is necessary;

• (c) the matters, if any, to be dealt with in evidence;

• (d) the manner in which any evidence is to be provided and, in particular, as to the following—

• (i) the taking of evidence wholly or partly by witness statement or orally;

• (ii) any report to be made by the T&S administrator;

• (iii) the cross-examination of the maker of a witness statement or of a report.

• (2) The court may adjourn the hearing of an application on such terms as it thinks just.

CHAPTER 2 — Enforcement Procedures

Enforcement of court orders

111

In T&S administration proceedings, orders of the court may be enforced in the same manner as a judgment to the same effect.

Orders enforcing compliance

112

• (1) The court may, on an application by the T&S administrator, make such orders as it thinks necessary for the enforcement of obligations falling on any person in accordance with—

• (a) paragraph 47 of Schedule B1 to the 1986 Act (duty to submit statement of affairs), or

• (b) section 235 of the 1986 Act (duty to co-operate with T&S administrator).

• (2) An order of the court under this rule may provide that all costs of and incidental to the application for it are to be borne by the person against whom the order is made.

Warrant under section 236 of the 1986 Act

113

• (1) For the purpose of the issue of a warrant under section 236 of the 1986 Act[^f00044] (inquiry into insolvent company’s dealings), the persons referred to in that section as the prescribed officer of the court are the tipstaff and the tipstaff’s assistants of the court.

• (2) In this rule, references to property include books, papers and other documents and records.

• (3) When a person is arrested under a warrant issued under section 236 of the 1986 Act (“the arrested person”), the arresting officer must as soon as reasonably practicable bring the arrested person before the court issuing the warrant in order that the arrested person may be examined.

• (4) If the arrested person cannot immediately be brought up for examination, the officer must deliver the arrested person into the custody of the relevant prison governor.

• (5) The relevant prison governor must keep the arrested person in custody and produce the arrested person before the court as the court may from time to time direct.

• (6) After arresting the person named in the warrant, the officer must as soon as reasonably practicable report to the court the arrest or delivery into custody (as the case may be) and apply to the court to fix a venue for the arrested person’s examination.

• (7) The court must appoint the earliest practicable time for the examination, and must—

• (a) direct the relevant prison governor to produce the arrested person for examination at the time and place appointed;

• (b) as soon as reasonably practicable deliver notice of the venue to the T&S administrator.

• (8) Where any property in the arrested person’s possession is seized, the property must, as directed by the warrant, be—

• (a) delivered to whoever is specified in the warrant as authorised to receive it, or otherwise dealt with in accordance with the directions in the warrant, or

• (b) kept by the officer seizing it pending the receipt of written orders from the court as to its disposal.

• (9) In this rule, “the relevant prison governor” means—

• (a) the governor of the prison named in the warrant, or

• (b) where that prison is not able to accommodate the arrested person, the governor of such other prison, with appropriate facilities, that is able to accommodate the arrested person.

CHAPTER 3 — The Court File

Court file

114

• (1) The court must open and maintain a file (the “court file”) in any case where documents are filed with it under the 1986 Act or these Rules.

• (2) Any documents which are filed with the court under the 1986 Act or these Rules must be placed on the court file.

• (3) The following persons may inspect the court file, or obtain from the court a copy of the court file, or of any document in the court file—

• (a) the T&S administrator;

• (b) the Secretary of State;

• (c) the Gas and Electricity Markets Authority;

• (d) a creditor who provides the court with a statement confirming that the person is a creditor of the T&S company;

• (e) a person who is, or at any time has been, a director or officer of the T&S company;

• (f) a person who is a member of the T&S company;

• (g) the Health and Safety Executive;

• (h) the Oil and Gas Authority.

• (4) A person’s right to inspect or obtain copies may be exercised on that person’s behalf by someone authorised to do so by that person.

• (5) Any person who is not otherwise entitled to inspect the court file or obtain copies may do so if the court gives permission.

• (6) The court may direct that the court file, a document (or part of it) or a copy of a document (or part of it) must not be made available under paragraph (3) or (4) without the permission of the court.

• (7) An application for a direction under paragraph (6) may be made by—

• (a) the T&S administrator, or

• (b) any person appearing to the court to have an interest.

• (8) Inspection of the court file, with permission if required, may be at any reasonable time.

• (9) The right to a copy of a document is subject to payment of the fee chargeable under an order made under section 92 of the Courts Act 2003[^f00045].

• (10) The following applications may be made without notice to any other party, but the court may direct that notice must be delivered to any person who would be affected by its decision—

• (a) an application for permission to inspect the court file or obtain a copy of a document under paragraph (5);

• (b) an application for a direction under paragraph (6).

• (11) If for the purposes of powers conferred by the 1986 Act or these Rules, the Secretary of State or the T&S administrator requests the transmission of the court file, the court must comply with the request (unless the file is for the time being in use for the court’s own purposes).

Office copies of documents

115

• (1) The court must provide an office copy of a document from the court file to a person who has under these Rules the right to inspect the court file where that person has requested such a copy and paid the fee under rule 114(9).

• (2) A person’s right under this rule may be exercised on that person’s behalf by someone authorised to do so by that person.

• (3) An office copy provided by the court under this rule must be in such form as the relevant Judge thinks appropriate, and must bear the court’s seal.

• (4) In this rule, “relevant Judge” means the High Court Judge, Insolvency and Companies Court Judge or District Judge of the High Court before whom the proceedings are brought.

CHAPTER 4 — Costs and Detailed Assessment

Application and interpretation

116

• (1) This Chapter applies to costs of and in connection with T&S administration proceedings.

• (2) In this Chapter, “costs” includes charges and expenses.

• (3) CPR Parts 44 and 47[^f00046] (which relate to costs) apply to such costs.

Requirement to assess costs by the detailed procedure

117

• (1) Where the costs of any person are payable as an expense out of the assets of the T&S company, the amount payable must be decided by detailed assessment unless agreed between the T&S administrator and the person entitled to payment.

• (2) In the absence of such agreement, the T&S administrator may serve notice requiring the person entitled to payment to commence detailed assessment proceedings in accordance with CPR Part 47.

• (3) Detailed assessment proceedings must be commenced in the court to which the T&S administration proceedings are allocated.

• (4) Where the costs of any person employed by the T&S administrator in T&S administration proceedings are required to be decided by detailed assessment or fixed by order of the court, the T&S administrator may make payments on account to such person in respect of those costs provided that person undertakes in writing—

• (a) to repay as soon as reasonably practicable any money which may, when detailed assessment is made, prove to have been overpaid, and

• (b) to pay interest on any such sum as is mentioned in sub-paragraph (a) at the rate specified in section 17 of the Judgments Act 1838 on the date payment was made and for the period beginning with the date of payment and ending with the date of repayment.

• (5) In any proceedings before the court, the court may order costs to be decided by detailed assessment.

Procedure where detailed assessment required

118

• (1) Before making a detailed assessment of the costs of any person employed in T&S administration proceedings by the T&S administrator, the costs officer must require a certificate of employment, which must be endorsed on the bill and authenticated by the T&S administrator.

• (2) The certificate must include the following—

• (a) the name and address of the person employed;

• (b) details of the functions to be carried out under the employment;

• (c) a note of any special terms of remuneration which have been agreed.

• (3) Every person whose costs in T&S administration proceedings are required to be decided by detailed assessment must, on being required in writing to do so by the T&S administrator, commence detailed assessment proceedings in accordance with CPR Part 47.

• (4) If that person does not commence detailed assessment proceedings within three months of being required to do so under paragraph (3), or within such further time as the court, on application, may permit, the T&S administrator may deal with the assets of the T&S company without regard to any claim for costs by that person, whose claim is forfeited by such failure to commence proceedings.

• (5) Where in any such case such a claim for costs lies additionally against a T&S administrator in the T&S administrator’s personal capacity, that claim is also forfeited by such failure to commence proceedings.

Costs paid otherwise than out of the assets of the T&S company

119

Where the amount of costs is decided by detailed assessment under an order of the court directing that the costs are to be paid otherwise than out of the assets of the T&S company, the costs officer must note on the final costs certificate by whom, or the manner in which, the costs are to be paid.

Award of costs against T&S administrator

120

Without prejudice to any provision of the 1986 Act or these Rules by virtue of which the T&S administrator is not in any event to be liable for costs and expenses, where a T&S administrator is made a party to any proceedings on the application of another party to the proceedings, the T&S administrator is not to be personally liable for the costs unless the court otherwise directs.

Application for costs

121

• (1) This rule applies where a party to, or person affected by, T&S administration proceedings—

• (a) applies to the court for an order allowing their costs, or part of them, of or incidental to the proceedings, and

• (b) that application is not made at the time of the proceedings.

• (2) The applicant must serve a sealed copy of the application on the T&S administrator.

• (3) The T&S administrator may appear on the application.

• (4) No costs of or incidental to the application are to be allowed to the applicant unless the court is satisfied that the application could not have been made at the time of the proceedings.

Costs and expenses of witnesses

122

• (1) An officer of the T&S company to which the T&S administration proceedings relate is not to receive an allowance as a witness in an examination or other proceedings before the court except as directed by the court.

• (2) A person making any application in T&S administration proceedings is not to receive an allowance as a witness for attending the hearing of the application, but the costs officer may allow that person’s expenses of travelling and subsistence.

Final costs certificate

123

• (1) A final costs certificate of the costs officer is final and conclusive as to all matters which have not been objected to in the manner provided for under the CPR.

• (2) Where it is proved to the satisfaction of a costs officer that a final costs certificate has been lost or destroyed, the costs officer may issue a duplicate.

CHAPTER 5 — Persons who Lack Capacity to Manage their Affairs

Introduction

124

• (1) The rules in this Chapter apply where it appears to the court in T&S administration proceedings that a person affected by the proceedings is unable to manage and administer that person’s own property and affairs by reason of—

• (a) lacking capacity within the meaning of the Mental Capacity Act 2005[^f00047],

• (b) suffering from a physical affliction, or

• (c) disability.

• (2) Such a person is referred to in this Chapter as “the incapacitated person”.

Appointment of another person to act

125

• (1) The court may appoint such person as it thinks just to appear for, represent or act for the incapacitated person.

• (2) The appointment may be made either generally or for the purpose of a particular application or proceeding, or for the exercise of particular rights or powers which the incapacitated person might have exercised but for the incapacitated person’s incapacity.

• (3) The court may make the appointment either of its own motion or on application by—

• (a) a person who has been appointed by a court in the United Kingdom or elsewhere to manage the affairs of, or to represent, the incapacitated person;

• (b) any person who appears to the court to be a suitable person to make the application;

• (c) the T&S administrator.

• (4) An application under paragraph (3) may be made without notice to any other party.

• (5) The court may require such notice of the application as it thinks necessary to be delivered to the person alleged to be incapacitated, or any other person, and may adjourn the hearing of the application to enable the notice to be delivered.

Witness statement in support of application

126

An application under rule 125(3) must be supported by a witness statement made by a registered medical practitioner as to the mental or physical condition of the incapacitated person.

Service of notices following appointment

127

Any notice served on, or sent to, a person appointed under rule 125 has the same effect as if it had been served on, or sent to, the incapacitated person.

CHAPTER 6 — Appeals in T&S administration Proceedings

Appeals and reviews

128

• (1) A court which has jurisdiction in relation to T&S administration proceedings may review, rescind or vary any order made by it in the exercise of that jurisdiction.

• (2) An appeal made in the exercise of the court’s jurisdiction in relation to T&S administration proceedings lies—

• (a) from a decision of an Insolvency and Companies Court Judge or District Judge of the High Court, to a High Court Judge;

• (b) from a decision of a High Court Judge, to the Civil Division of the Court of Appeal.

• (3) In this rule, “Civil Division of the Court of Appeal” means the division of the Court of Appeal established by section 3(1) of the Senior Courts Act 1981[^f00048].

Procedure on appeal

129

• (1) An appeal against a decision at first instance may only be brought with either the permission of the court which made the decision or the permission of the court which has jurisdiction to hear the appeal.

• (2) An appellant must file an appellant’s notice (within the meaning of CPR Part 52[^f00049]) within 21 days after the date of the decision of the court that the appellant wishes to appeal.

• (3) The procedure set out in CPR Part 52 applies to any appeal to which this Chapter applies.

CHAPTER 7 — General

Principal court rules and practice to apply

130

• (1) The provisions of the CPR (including any related practice directions) apply to T&S administration proceedings with any necessary modifications, except so far as disapplied by or inconsistent with these Rules.

• (2) T&S administration proceedings must be allocated to the multi-track, for which CPR Part 29[^f00050] makes provision, and accordingly those provisions of the CPR which provide for directions questionnaires and track allocation do not apply.

• (3) CPR Part 32 (evidence) applies to a false statement in a document verified by a statement of truth made under these Rules as it applies to a false statement in a document verified by a statement of truth made under CPR Part 22 (statements of truth).

Performance of functions by the court

131

• (1) In T&S administration proceedings, anything to be done by, to or before the court may be done by, to or before a High Court Judge, Insolvency and Companies Court Judge or District Judge of the High Court.

• (2) The Insolvency and Companies Court Judge or District Judge of the High Court may authorise any act of a formal or administrative character which is not in accordance with any enactment that person’s responsibility to be carried out by the chief clerk or any other officer of the court acting on that person’s behalf, in accordance with directions given by the Lord Chancellor.

• (3) The hearing of an application must be in open court unless the court directs otherwise.

Rights of audience

132

Rights of audience in T&S administration proceedings are the same as in insolvency proceedings.

Formal defects

133

No T&S administration proceedings are to be invalidated by any formal defect or any irregularity, unless the court before which objection is made considers that substantial injustice has been caused by the defect or irregularity, and that the injustice cannot be remedied by any order of the court.

Shorthand writers

134

• (1) The court may in writing nominate a person to be official shorthand writer to the court.

• (2) The court may, at any time in the course of T&S administration proceedings, appoint a shorthand writer to take down evidence of a person examined under section 236 of the 1986 Act.

• (3) The remuneration of a shorthand writer appointed in T&S administration proceedings must be paid by the party at whose instance the appointment was made, or out of the assets of the T&S company or otherwise, as the court may direct.

• (4) Any question arising as to the rates of remuneration payable under this rule must be determined by the court.

Payment into court

135

CPR Part 37[^f00051] (miscellaneous provisions about payment into court) applies to money lodged in court under these Rules.

Further information and disclosure

136

• (1) A party to T&S administration proceedings may apply to the court for an order—

• (a) that in accordance with CPR Part 18[^f00052] (further information) another party—

• (i) clarify a matter that is in dispute in the proceedings, or

• (ii) give additional information in relation to such a matter, or

• (b) for disclosure from any person in accordance with CPR Part 31[^f00053] (disclosure and inspection of documents), save where rules 18 or 24 apply.

• (2) An application under this rule may be made without notice to any other party.

Court orders

137

The court may make such other order or in such form as the court thinks just, despite any requirement in these Rules as to the contents of a court order.

PART 12 — Examination of Persons in T&S administration Proceedings

Application and interpretation

138

• (1) The rules in this Part apply to applications to the court, made by the T&S administrator, for an order under section 236 of the 1986 Act (inquiry into company’s dealings).

• (2) In this Part—

• (a) “the respondent” means the person in respect of whom an order under section 236 is applied for;

• (b) “section 236” means section 236 of the 1986 Act.

Contents of application

139

• (1) The application must state the following—

• (a) the grounds on which it is made;

• (b) the name of the respondent;

• (c) which order or combination of orders referred to in paragraph (2) is sought.

• (2) The orders are—

• (a) for the respondent to appear before the court;

• (b) for the respondent to clarify any matter which is in dispute in the proceedings or to give additional information in relation to any such matter (if CPR Part 18 (further information) applies to any such order);

• (c) for the respondent to submit witness statements (if so, particulars must be given of the matters to be included);

• (d) for the respondent to produce books, papers or other records (if so, the items in question must be specified).

• (3) The application may be made without notice to the respondent or any other party.

Order for examination, etc.

140

• (1) The court may, whatever the order sought in the application, make any order which it has power to make under section 236.

• (2) The court, if it orders the respondent to appear before it, must specify a venue for the respondent’s appearance, which must be not less than 14 days from the date of the order.

• (3) If the respondent is ordered to file with the court a witness statement, the order must specify—

• (a) the matters which are to be dealt with in the respondent’s witness statement, and

• (b) the time within which it is to be delivered.

• (4) If the order is to produce books, papers or other records, the time and manner of compliance must be specified.

• (5) The order must be served by the T&S administrator as soon as reasonably practicable on the respondent, and it must be served personally, unless the court otherwise orders.

Procedure for examination

141

• (1) At any examination of the respondent, the T&S administrator may attend in person, or be represented by an appropriately qualified legal representative, and may put such questions to the respondent as the court may allow.

• (2) Any creditor who has provided information on which the application was made under section 236 may—

• (a) attend the examination with the permission of the court, and

• (b) put questions to the respondent, but only through the T&S administrator.

• (3) If the respondent is ordered to clarify any matter or to give additional information, the court must direct the respondent as to the questions which the respondent is required to answer, and as to whether the respondent’s answers (if any) are to be made in a witness statement.

• (4) The respondent may at the respondent’s own expense employ an appropriately qualified legal representative who may—

• (a) put to the respondent such questions as the court may allow for the purpose of enabling the respondent to explain or qualify any answers given by the respondent, and

• (b) make representations on the respondent’s behalf.

• (5) There must be made in writing such record of the examination as the court thinks proper and such record must be read either to or by the respondent and authenticated by the respondent at a venue fixed by the court.

• (6) The written record may, in any proceedings (whether under the 1986 Act or otherwise), be used as evidence against the respondent of any statement made by the respondent in the course of the respondent’s examination.

Record of examination

142

• (1) Unless the court otherwise directs, the record of questions put to the respondent, the respondent’s answers, and any witness statement delivered to the court by the respondent in compliance with an order of the court under section 236 are not to be filed with the court.

• (2) The documents listed in paragraph (3) are not open to inspection without the permission of the court, except by the T&S administrator.

• (3) The documents are as follows—

• (a) the written record of the respondent’s examination;

• (b) copies of questions put to the respondent or proposed to be put to the respondent and answers to questions given by the respondent;

• (c) any witness statement by the respondent;

• (d) any document on the court file that shows the grounds for the application for the order.

• (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 provision of copies of, or extracts from, such documents.

Cost of proceedings under section 236

143

• (1) Where the court has ordered an examination of a person under section 236, 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 the respondent.

• (2) Where the court makes an order against a person under section 237(1) or (2) of the 1986 Act (court’s enforcement powers under section 236), the costs of the application for the order may be ordered by the court to be paid by the respondent.

• (3) The T&S administrator’s costs must, unless the court otherwise orders, be paid out of the assets of the T&S company (subject to paragraphs (1) and (2)).

• (4) A person summoned to attend for examination under this Part must be tendered a reasonable sum for travelling expenses incurred in connection with that person’s attendance but any other costs falling on that person are at the court’s discretion.

PART 13 — Provisions of General Effect

CHAPTER 1 — Delivery of Documents

Application

144

• (1) This Chapter applies where a document is required under the 1986 Act or these Rules to be delivered, filed, forwarded, furnished, given, sent or submitted by any person unless the 1986 Act, a rule or an order of the court makes different provision including one requiring service of the document.

• (2) But this Chapter does not apply to the delivery of documents to the registrar of companies.

Personal delivery of documents

145

A document is delivered if it is personally delivered in accordance with the rules for personal service in CPR Part 6[^f00054].

Delivery of documents by post (or document exchange)

146

A document is delivered if it is sent by post (or document exchange) in accordance with the rules for such service in CPR Part 6 and sending by such means has effect as specified in those rules.