20.—(1) At a pre-hearing review if a chairman considers that the contentions put forward by any party in relation to a matter required to be determined by a tribunal have little reasonable prospect of success, the chairman may make an order against that party requiring the party to pay a deposit of an amount not exceeding £500 as a condition of being permitted to continue to take part in the proceedings relating to that matter.
(2) No order shall be made under this rule unless the chairman has taken reasonable steps to ascertain the ability of the party against whom it is proposed to make the order to comply with such an order, and has taken account of any information so ascertained in determining the amount of the deposit.
(3) An order made under this rule, and the chairman’s grounds for making such an order, shall be recorded in a document signed by the chairman. A copy of that document shall be sent to each of the parties and shall be accompanied by a note explaining that if the party against whom the order is made persists in making those contentions relating to the matter to which the order relates, he may have an award of costs or preparation time made against him and could lose his deposit.
(4) If a party against whom an order has been made does not pay the amount specified in the order to the Secretary either: —
(a)within the period of 21 days of the day on which the document recording the making of the order is sent to him; or
(b)within such further period, not exceeding 14 days, as the chairman may allow in the light of representations made by that party within the period of 21 days;
a chairman shall strike out the claim or response of that party or, as the case may be, the part of it to which the order relates.
(5) The deposit paid by a party under an order made under this rule shall be refunded to him in full except where rule 47 applies.