6 Amendment to the Civil Procedure Rules 1998
After rule 3.7 insert—

“3.7A 1 This rule applies where a defendant files a counterclaim without—
(a) payment of the fee specified by the relevant Fees Order; or
(b) making an application for an exemption from or remission of the fee.
2 The court will serve a notice on the defendant requiring payment of the fee specified in the relevant Fees Order if, at the time the fee is due, the defendant has not paid it or made an application for exemption or remission.
3 The notice will specify the date by which the defendant must pay the fee.
4 If the defendant does not—
(a) pay the fee; or
(b) make an application for an exemption from or remission of the fee,
by the date specified in the notice, the counterclaim will automatically be struck out without further order of the court.
5 Where an application for exemption from or remission of a fee is refused, the court will serve notice on the defendant requiring payment of the fee by the date specified in the notice.
6 If the defendant does not pay the fee by the date specified in the notice, the counterclaim will automatically be struck out without further order of the court.
7 If—
(a) the defendant applies to have the counterclaim reinstated; and
(b) the court grants relief,
the relief will be conditional on the defendant either paying the fee or filing evidence of exemption from payment or remission of the fee within the period specified in paragraph (8).
8 The period referred to in paragraph (7) is—
(a) if the order granting relief is made at a hearing at which the defendant is present or represented, 2 days from the date of the order;
(b) in any other case, 7 days from the date of service of the order on the defendant.”

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