If the official receivers deposit is not van paid within 7 calendar days after filing the petition, the petition will not be accepted, in accordance with paragraph.3 of the Electronic Practice direction 510 -The Electronic Working Pilot Scheme. If a petition is not accepted, a new petition will have to be filed if the petitioner wishes to wind up a company. 9.3.3 The deposit will be taken by the court and forwarded to the official receiver. In the royal courts of Justice the petition fee and deposit should be paid by cheque, or by debit or credit card over the phone. The court will record the receipt and will impress two entries on the original petition, one in respect of the court fee and the other in respect of the deposit. In a district Registry or a county court hearing centre, the petition fee and deposit should be paid to the staff of the duly authorised officer of the court, who will record its receipt. 9.3.4 If payment is made by cheque, it should be made payable to hm courts and Tribunals Service or hmcts.
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The court will consider whether any part of the costs should be disallowed where an application is made less than one month before the end of the administration. Winding up petitions.1. Where a winding up petition is presented following service of a statutory demand, the statutory demand must contain the information set out in rule.3 of the Insolvency rules and should, as far as possible, follow the form which appears.2 Before presenting. Save in exceptional circumstances a second winding up petition should not be presented whilst a prior petition is pending. A petitioner who presents a petition while another petition is pending does so at risk as to costs. 9.3 payment of the fee and deposit.3.1 Unless the petition is one in respect of which rule.7(2 b) of the Insolvency rules applies, a winding up petition will not be treated as having been presented until the court fee and official receivers deposit. 9.3.2 A petition filed electronically without payment of the deposit will be marked private and will not be available for inspection until the deposit has been paid. The date of presentation of the petition will accord with the date on which the deposit has been paid.
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Drawing up of pgb orders.1 The parties are responsible for drawing up all orders, unless the court directs otherwise. Attention is drawn to cprpd 40B.2 and the Chancery guide. All applications should be accompanied by draft orders. Urgent applications.1 In the royal courts of Justice the icc prophylaxis judges and the high court Judges (and in other courts exercising insolvency jurisdiction the high court Judges, district Judges Sitting in a district Registry and District Judges) will hear urgent applications and time-critical applications. This may involve delaying the hearing of another matter. Accordingly, parties asking for an application to be dealt with urgently must be able to justify the urgency with reasons. Part two: company insolvency. .
Administrations.1 Attention is drawn to paragraph.1 of the Electronic Practice direction 51o -the Electronic Working Pilot Scheme, or to any subsequent Electronic Practice direction made after the date of this ipd, where an application is made, or intention to appoint an administrator. For the avoidance of doubt, and notwithstanding the restriction in sub-paragraph (c) to notices of appointment made by qualifying floating charge holders, paragraph.1 of the Electronic Practice direction 51O shall not apply to any filing of a notice of appointment of an administrator outside. 8.2 Paragraph.4 of the Electronic Practice direction 510 provides that the date and time of payment will be the filing date and time and it will also be the date and time of issue for all claim forms and other originating processes submitted using. 8.3 In the absence of special circumstances, an application for the extension of an administration should be made not less than one month before the end of the administration. The evidence in support of any later application must explain why the application is being made late.
To restrain the presentation or advertisement of a winding up petition (3) interim applications and applications for directions or case management after any proceedings have been referred or adjourned to the judge; (4) applications for the appointment of a provisional liquidator; and (5) applications for. 3.5, the following applications relating to insolvent companies or insolvent individuals may be listed before a district Judge sitting in a district Registry only with the consent of the supervising Judge for the circuit in which the district Judge is sitting, or with the consent. To restrain the presentation or advertisement of a winding up petition (2) interim applications and applications for directions or case management after any proceedings have been referred or adjourned to a high court Judge. 3.6 When deciding whether to hear and determine proceedings or to refer or adjourn them to a different level of judge, regard must be had to the following factors: (1) whether the proceedings raise new or controversial points of law or have wide public interest. 3.7 Where insolvency proceedings are commenced or an insolvency application is made in a county court hearing centre having insolvency jurisdiction, such proceedings or application shall be transferred to a county court hearing centre located at a district Registry having insolvency jurisdiction in the same. Court documents.1 All insolvency proceedings should be commenced and applications in insolvency proceedings should be made using the information prescribed by the Act, Insolvency rules, the business and Property courts Practice direction and/or other legislation under which the same is or are brought.
Some forms relating to insolvency proceedings may be found at: back to top. Service of court documents in insolvency proceedings.1 Schedule 4 to the Insolvency rules prescribes the requirements for service where a court document is required to be served pursuant to the Act or the Insolvency rules. . Pursuant to Schedule 4, cpr part 6 applies except where Schedule 4 provides otherwise, or the court otherwise approves or directs. 5.2 Subject to the court approving or directing otherwise, cpr part 6 applies to the service of court documents both within and out of the jurisdiction. 5.3 Attention is drawn to paragraph 6 of Schedule 4 to the Insolvency rules which provides that where the court has directed that service be effected in a particular manner, the certificate of service must be accompanied by a sealed copy of the order directing. 5.4 The provisions of cpr part 6 are modified by Schedule 4 to the Insolvency rules in respect of certain documents. Reference should be made to the table of requirements for service in Schedule. Notable modifications relate to the service of: (a) a winding up petition; and (b) an application for an administration order. 5.5 A statutory demand is not a court document.
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Back to top. . Coming into force.1. This ipd shall come into force on shall replace all previous Practice directions, Practice Statements and Practice notes relating to insolvency proceedings. . This ipd does not affect the cprpd or Pilot concerning Insolvency Express Trials, and for the avoidance of doubt, does not affect the pd for Directors Disqualification Proceedings. Distribution of business.1, in the high court, all petitions and applications, save where paragraph.3 below provides otherwise, should be listed for an initial hearing before an icc judge in the royal courts of Justice, or a district Judge sitting in a district Registry. 3.2, in the county court, petitions and applications that may be heard by a district Judge are set out in the business and Property courts Practice direction at paragraph.2(d). 3.3, the following applications relating to insolvent companies or insolvent individuals verpleegkundige must be listed before a high court Judge: (1) applications for committal for contempt; and (2) applications for a search order (cpr.1(1 h a freezing order (cpr.1(1 f) and an ancillary order. 3.4, the following applications relating to insolvent companies or insolvent individuals may be listed only before a high court Judge or icc judge but, subject to paragraph.5 below, not before a district Judge sitting in a district Registry or a district Judge: (1) applications.
Contents of this hypoxia Practice direction, part one: general provisions. . Definitions.1, in this Practice direction, which shall be referred to as the ipd, the following definitions will apply: (1) The Act means the Insolvency Act 1986 and includes the Act as applied to limited liability partnerships by the limited liability partnerships Regulations 2001. 1393/2007 or such successor regulation as may come into force replacing council Regulation (EC). 1393/2007 concerning the service in the member States of judicial and extrajudicial documents in civil and commercial matters; (6) Insolvency proceedings means: (a) any proceedings under Parts 1 to 11 of the Act, the Insolvency rules, the Administration of Insolvent Estates of Deceased Persons Order. 1986.1999 the Insolvent Partnerships Order 1994 (S.I. 2421) or the limited liability partnerships Regulations 2001; (b) any proceedings under the eu regulation on Insolvency Proceedings or the Cross-Border Insolvency regulations 2006 (SI 2006/1030 and (c) in an insolvency context an application made pursuant.423 of the Act. (7) References to a company include a limited liability partnership and references to a contributory include a member of a limited liability partnership; (8) The following judicial definitions apply: (a) District Judge means a person appointed a district Judge under.6(1) of the county courts. (9) The definitions in paragraph.1(8) include deputies unless otherwise specified and Deputies are defined as meaning, for each definition above respectively, a deputy district judge appointed under.8 of the county courts Act 1984, a deputy district Judge of the high court appointed under. (12) In part six of this ipd assessor means a person appointed see cpr.15/s.70 of the senior courts Act 1981.63 of the county courts Act 1984 as an assessor.
in the case of a company's liabilities that can as matters now stand be deferred for over 30 years, and where the company is (without any permanent increase in its borrowings) paying its debts as they fall due, the court should proceed with the. The crucial issue, to my mind, is how far the court of Appeal's conclusion depended on the "point of no return" test. For reasons already mentioned, i consider that that is not the correct test, if and in so far as it goes beyond the need for a petitioner to satisfy the court, on the balance of probabilities, that a company has insufficient assets to be able. If it means no more than that, it is unhelpful, except as illuminating (as toulson lj put it) the purpose of section 123(2). It remains the case that the balance sheet test is not a mechanistic or accounting exercise, but a judgment about whether a company will be able to pay its contingent and prospective creditors.
Such a mechanistic, even artificial, reason for permitting a creditor to kwaliteit present a petition to wind up a company could, in my view, only be justified if the words of section 123(2) compelled that conclusion, and in my opinion they do not. In my view, the purpose of section 123(2) has been accurately characterised by Professor Sir roy goode in Principles of Corporate Insolvency law, 3rd ed (2005). Having referred to section 123(1 e) as being the 'cash flow test' and to section 123(2) as being the 'balance sheet test he said this, at para 4-06: 'If the cash flow test were the only relevant test for insolvency then current and short-term creditors. In my judgment, both the purpose and the applicable test of section 123(2) are accurately encapsulated in that brief passage.". Toulson lj agreed with Lord neuberger mr but expressed himself in a more guarded way. He agreed that Professor Sir roy goode had "rightly discerned the underlying policy" (para 115) but added (para 119) that Professor goode's reference to a company having "reached the point of no return because of an incurable deficiency in its assets" illuminates the purpose. He continued: "Essentially, section 123(2) requires the court to make a judgment whether it has been established that, looking at the company's assets and making proper allowance for its prospective and contingent liabilities, it cannot reasonably be expected to be able to meet those liabilities. If so, it will be deemed insolvent although it is currently able to pay its debts as they fall due. The more distant the liabilities, the harder this will be to establish.".
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The supreme court has decided (. Bny corporate Trustee services Ltd ors v neuberger 2013 uksc 28 ) that the balance sheet test in s123(2) Insolvency Act 1986 requires a petitioner to satisfy the court, on the balance of probabilities, that a company has insufficient assets to be able to meet. Lord Walkers leading judgement given on makes clear that the point of no return or the end of the road (concepts that have been in use since the. Court of Appeal decision in March 2011 ) are not part of the balance sheet test. Three key paragraphs from Lord Walkers judgement are:. Lord neuberger mr developed his discussion of s123(2) at paras 47 to 49 of his judgment: "47. More generally, i find it hard to discern any conceivable policy reason why a company should be at risk of being wound up simply because the aggregate value (however calculated) of its liabilities exceeds that of its assets. Many companies in that position are successful and creditworthy, écoise and cannot in any way be characterised as 'unable to pay their debts'.