Temporary Insolvency Practice Direction comes into force

The Temporary Insolvency Practice Direction (“TIPD”) came into force on 6th April 2020 and will remain in force until 1st October 2020. The purpose of the TIPD is to assist the court during the COVID-19 pandemic, trying to remove the need for parties to attend court in person and to make provisions for the court to operate with limited staff and resources. The TIPD supplements the Insolvency Practice Direction which came into force in July 2018. 

 

Some of the changes include:

 

  1. Filing a notice of intention to appoint an administrator and notice of appointment

Under the TIPD any notices filed by CE Filing for the purposes of rule 1.46(2) the time that the notice is delivered will be treated as being the time stated on the CE Filing Submission Email.

This shall apply to:

 

  • a Notice of Appointment of an Administrator filed by a qualifying floating charge holder under paragraph 18 of Schedule B1;
  • a Notice of Intention to Appoint an Administrator filed by a company or its directors under Paragraph 27 of Schedule B1; and
  • a Notice of Appointment of an Administrator by a company or its directors under Paragraph 29 of Schedule B1.

 

In the cases of:

  • a Notice of Intention to Appoint an Administrator filed by a company or its directors under Paragraph 27 of Schedule B1; and
  • a Notice of Appointment of an Administrator by a company or its directors under Paragraph 29 of Schedule B1.

Where the notice is filed outside of court hours (i.e. outside of 10:00am to 16:00pm) the notice will be treated as being filed at being filed at 10:00am the next day the court is open for business.

 

  1. Adjournment of Applications and Petitions

All applications, petitions and claim forms (save for petitions for winding up and bankruptcy to be heard before an ICC Judge sitting in the Rolls Building in London) currently listed for hearing prior to 21 April 2020 are adjourned and relisted according to urgency.

 

  1. Urgent Hearing Procedure

The practice direction provides details of the procedure of listing urgent hearings. Emails should be sent to ICL.Hearings1@justice.gov.uk or the relevant High Court Judge setting out the petition/application and;

  • Why the application is urgent
  • Estimate time of hearing and pre-reading
  • Number of parties attending
  • Confirmation the hearing can be undertaken through Skype, an alternative programme agreed by the parties or court or telephone

 

  1. Listing Procedure for Bankruptcy or Winding up Petitions

Petitions will be listed in groups of two or more and will be listed through Skype for Business or as the Court sees fit. The onus is on the parties to ensure they are able to utilise the link provided by the court. Any person intending to appear must filed a Notice of Intention in accordance with Rule 7.14 and provide an email address or telephone number to be invited to join the hearing remotely.

 

  1. Statutory Declarations

The TIPD states that if a Statutory Declaration is provided by way of a video conference with a person authorised to administer oaths then the failure to give the Statutory Declaration in person will not be regarded in itself as causing substantial injustice. The Statutory Declaration must state it was given in this manner and the person authorised to administer oaths must attest the Statutory Declaration must attest to this too. 

 

The full version of the Temporary Insolvency Practice Direction can be accessed herehttps://www.judiciary.uk/wp-content/uploads/2020/04/Temporary-IPD-April-2020_.pdf

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