Part 10
Miscellaneous Provisions Relating to Court Practice and Procedure
March 2001
The Courts Act 2003 provides for a new unified courts administration to be created which combines the functions of the court service and the magistrates' courts committees. The new organisation, Her Majesty's Courts Service www.hmcourts-service.gov.uk was established in April 2005. The aim of the agency is to deliver improved services to the community, taxpayer, victims, witnesses and all other users of the courts. It will help to ensure the department can deliver high quality services across all the courts and develop best practice with the most effective use of resources.
19.116 Insolvency Court Users Committee
The Insolvency Court Users’ Committee was set up in April 1987 to advise on improvements to court practices. All proposals for change in court practice relating to insolvency matters are considered by the committee unless they relate to the Insolvency Rules 1986 (see paragraph 19.117).
The members of 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 called when appropriate.
19.117 Insolvency Rules Committee
(Amended December 2010)
The Insolvency Rules 1986 are made by, and can only be changed by, the Lord Chancellor with the concurrence 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.
19.118 Practice Notes
Whereas Practice Directions (see paragraphs 19.9 - 19.10) are issued for the most part at the direction of the Lord Chancellor and have binding effect, Practice Notes are not intended to be binding and are issued by the Chief Bankruptcy Registrar. Practice Notes are issued 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 courts sitting in bankruptcy but will have a persuasive effect on the practice and procedure in these courts. Practice Notes do not have the force of law.
19.119 The Chancery Guide
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 (see Enforcement guidance) but also contains useful background information on how the Chancery Division of the High Court operates. A copy of the Chancery Guide is available on the following internet site: www.hmcourts-service.gov.uk
19.120 Extension of time limits
(Amended November 2012)
The provisions of Civil Procedure Rules 1998 (CPR) Part 2.8 (time) apply as regards computation of time in respect of anything required or authorised by the Insolvency Rules 1986 to be done [Note 1].
The provisions of CPR Part 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 [Note 2].
Where by any provision of the Act or the Rules about winding up or bankruptcy proceedings, the time for doing anything is limited, the court may extend the time, either before or after it has expired, on such terms, if any, as it thinks fit [Note 3].
Such an application would be made, without notice being served on any other party, to the court having jurisdiction in the matter. If the court consents to the order, and there are no unusual circumstances which would need to be drawn to the attention of the court, the application could be dealt with without the attendance of the official receiver.
Any rule or order of the court as to time has to be observed and must not be disregarded and any failure to comply with such provisions calls for a full and proper explanation or excuse. The provisions are intended to avoid delays in the proceedings. It should not be taken for granted that the court will exercise its powers to increase the time for carrying out a specific step. Ordinarily the court will extend time but will decline to do so where the delay has been excessive or where there is no explanation for substantial delay. The official receiver should adhere to time limits but, where a delay is unavoidable, an application to court to extend the time limit should be made at the earliest opportunity.
19.121 Computation of time
Any period of time for doing any act which is specified in the Rules, the CPR, by a practice direction or by a judgment or order of the court must be computed as 'clear days' [Note 4].
'Clear days' means that in computing the number of days:
are not included.
Example 1
Where the specified period is 5 days or less and includes a Saturday or Sunday, a Bank Holiday, Christmas Day or Good Friday, that day does not count. For cases with petitions on or after 6 April 2010, the Rules now specify the number of business days required where the period of notice for any action is less than 14 days. [Note 5].
Example 2
19.122 Meaning of month in judgments etc.
Where 'month' occurs in any judgment, order, direction or other document, it means a calendar month [Note 6].
19.123 (Amended December 2010)
Due to the updating of advice and guidance in this part, the information previously contained in this paragraph is no longer available.
19.124 Payment into court
CPR Part 37 (miscellaneous provisions about payments into court) applies to money lodged in court under the Insolvency Rules 1986 [Note 7]. The amount of any security required to be provided to the court is at the discretion of the court, which will fix such sum as it thinks just, having regard to all the circumstances of the case.
19.125 Formal defects
No insolvency proceeding shall be invalidated by any formal defect or by 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 [Note 8].
19.126 How to get orders corrected - 'the slip rule'
The CPR provides that 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 9]. The court also has a general power to rectify matters where there has been an error of civil procedure [Note 10]. This is not the same power as the court's power under section 375 of the Insolvency Act and rule 7.47 of the Insolvency Rules to review, vary or rescind any order made by it in the exercise of its insolvency jurisdiction under the Insolvency Act 1986. These provisions should still be used where appropriate (see Chapter 6 - Appeals, stays and rescissions, and Chapter 6A - Annulments).
19.127 Service of orders staying proceedings
Where, in insolvency proceedings, 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 11] [Note 12].
19.128 Winding-up petitions
When a winding-up petition is presented to either the Companies Court, a Chancery District Registry or a County Court having jurisdiction, 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 telephone (020 7947 7328).
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