Part 14 – Others matters
June 2014
A number of other matters could not be easily assimilated into the other parts of the chapter. This part includes the following;
19.222 Insolvency Court Users Committee
The Insolvency Court Users’ Committee was set up in April 1987 to consider improvements to court practice. All proposals for a change in court practice relating to insolvency are considered by the committee unless they relate to the Insolvency Rules 1986 (see paragraph 19.221). The Insolvency Court Users’ Committee include members of the bar, the Law Society, the Insolvency Service and the Association of Business Recovery Professionals. Meetings of this committee are held when required.
19.223 Insolvency Rules Committee
The Insolvency Rules 1986 are made by, and may only be changed by, the Lord Chancellor with the agreement of the Secretary of State for Business, Innovation and Skills. The Insolvency Rules Committee must be consulted before any changes to the Rules are made.
The Chief Bankruptcy Registrar issues Practice Notes for the guidance of practitioners and litigants on matters relating to the details of procedure dealing with the distribution of business in the High Court between judge and registrar and between open court and chambers. They are mostly intended to cure omissions or misleading notes in the prescribed forms. The Practice Notes cannot in themselves direct the practice of the County Court sitting in bankruptcy but will have a persuasive effect on the practice and procedure in the court. Practice Notes are not binding and do not have the force of law.
The Chancery Guide was amended in 2005 and gives practical guidance on the conduct of business in the Chancery Division of the High Court. The guide has most relevance to disqualification applications (covered in the Enforcement Investigation Guide) but also contains useful background information on how the Chancery Division of the High Court operates. A copy of the Chancery Guide is available here.
Part 37 of the CPR (miscellaneous provisions about payments into court) applies to money lodged in court under the Insolvency Rules 1986 [Note 1]. The court has the discretion to set the amount of any security required to be provided. The court will fix such sum as it thinks just after considering all the circumstances of the case.
19.227 Formal defects in insolvency proceedings
Generally no insolvency proceeding shall be invalidated by any formal defect or by any irregularity. However the court may consider the insolvency proceedings invalid where a substantial injustice has been caused by the defect or irregularity, and that that injustice cannot be remedied by court order [Note 2].
19.228 “The slip rule” – correcting accidental errors in court orders
The court may at any time correct an accidental slip or omission in a judgment or order and a party may apply for correction without notice [Note 3]. The court also has a general power to rectify matters where there has been an error of civil procedure [Note 4].
19.229 Where the “slip rule” does not apply
The “slip rule” does not apply where the court reviews, varies or rescinds any order made by it in the exercise of its insolvency jurisdiction under the Insolvency Act 1986 on grounds other than an accidental slip or omission. Further information on applications for stay of proceedings, rescissions and annulments can be found in Chapters 6 and 6A.
19.230 Service of an order staying insolvency proceedings
Where the court makes an order staying any action, execution or other legal process against the property of a company, or against the property or person of an individual debtor or bankrupt, service of the order may be effected by sending a sealed copy of the order to the address for service of the claimant or other party having the carriage of the proceedings to be stayed [Note 5].
19.231 Central Registry of Winding-up Petitions
When a winding-up petition is presented to the Companies Court, or a Chancery District Registry or the County Court, the particulars (including the name of the company and the petitioner's solicitors) are entered in a computerised register. This is called the Central Registry of Winding-Up Petitions. It may be searched by using a premier rate telephone number 0906 754 0043.
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