The Insolvency (Amendment) Rules 2010

New Chapter in Part 7

447.  After Rule 7.10 insert—

“CHAPTER 1A BLOCK TRANSFER OF CASES WHERE INSOLVENCY PRACTITIONER HAS DIED ETC.

7.10A    Preliminary and interpretation

(1) The Rules in this Chapter relate to applications for a block transfer order.

(2) In this Chapter—

“outgoing office-holder” has the meaning in Rule 7.10B(1),

“replacement office-holder” has the meaning in Rule 7.10B(1),

“block transfer order” has the meaning in Rule 7.10B(2),

“substantive application” is that part of the application in Rule 7.10C(1)(c) and (d).

7.10B    ower to make a block transfer order

(1) This Rule applies where an individual who is acting as an office-holder (‘the outgoing office-holder’)—

(a) dies,

(b) retires from practice, or

(c) is otherwise unable or unwilling to continue in office,

and it is expedient to transfer some or all of the cases in which the outgoing office-holder holds office to one or more office-holders (‘the replacement office-holder’) in a single transaction.

(2) In a case to which this Rule applies the court has the power to make an order, (‘a block transfer order’), appointing a replacement office-holder in the place of the outgoing office-holder to be—

(a) liquidator in any winding up (including a case where the official receiver is the liquidator by virtue of section 136 of the Act),

(b) administrator in any administration,

(c) trustee in a bankruptcy (including a case where the official receiver is the trustee by virtue of section 300 of the Act), or

(d) supervisor of a voluntary arrangement under Part 1 or 8 of the Act.

(3) The replacement office-holder must be—

(a) qualified to act as an insolvency practitioner, or

(b) where the replacement office-holder is to be appointed supervisor of a voluntary arrangement under Part 1 or 8 of the Act—

(i) qualified to act as an insolvency practitioner, or

(ii) a person authorised so to act.

7.10C    Application for a block transfer order

(1) An application for a block transfer order may be made to the registrar or district judge for—

(a) the transfer to the High Court of the cases specified in the schedule under paragraph (8);

(b) the transfer of the cases back to the court from which they were transferred when a replacement office-holder has been appointed;

(c) the removal of the outgoing office-holder by the exercise of any of the powers in paragraph (2);

(d) the appointment of a replacement office-holder by the exercise of any of the powers in paragraph (3);

(e) such other order or direction as may be necessary or expedient in connection with any of the matters referred to above.

(2) The powers referred to in paragraph (1)(c) are—

(a) section 172(2) and Rule 7.10B(2) (winding up by the court);

(b) section 108 (voluntary liquidation);

(c) section 19, paragraph 88 of Schedule B1 to the Act and Rule 7.10B(2) (administration);

(d) section 298 and Rule 7.10B(2) (bankruptcy);

(e) section 7(5) and paragraph 39(6) of Schedule A1 to the Act (voluntary arrangement under Part 1 of the Act); and

(f) section 263(5) (voluntary arrangement under Part 8 of the Act).

(3) The powers referred to in paragraph (1)(d) are—

(a) section 168(3) and (5) and Rule 7.10B(2) (winding up by the court);

(b) section 108 (voluntary liquidation);

(c) section 13, paragraphs 63, 91 and 95 of Schedule B1 to the Act and Rule 7.10B(2) (administration);

(d) sections 298 and 303(2) and Rule 7.10B(2) (bankruptcy);

(e) section 7(5) and paragraph 39(6) of Schedule A1 to the Act (voluntary arrangement under Part 1 of the Act); and

(f) section 263(5) (voluntary arrangement under Part 8 of the Act).

(4) Subject to paragraph (5), the application may be made by any of the following—

(a) the outgoing office-holder (if able and willing to do so);

(b) any person who holds office jointly with the outgoing office-holder;

(c) any person who is proposed to be appointed as the replacement office-holder;

(d) any creditor in a case subject to the application;

(e) the recognised professional body or recognised body by which the outgoing office-holder is or was authorised; or

(f) the Secretary of State.

(5) Where one or more outgoing office-holder in the schedule under paragraph (8) is an administrator, an application may not be made unless a person permitted to apply to replace that office-holder under section 13 or paragraph 63, 91 or 95 of Schedule B1 to the Act is the applicant or is joined as applicant in respect of the replacement of that office-holder.

(6) An applicant (other than the Secretary of State) must give notice of the application to the Secretary of State at least 5 business days before the hearing of the application.

(7) The following must be made a respondent to the application and served with it—

(a) the outgoing office-holder (if not the applicant or deceased);

(b) every person who holds office jointly with the outgoing office-holder; and

(c) such person as the registrar or district judge directs.

(8) The application must contain a schedule setting out—

(a) the name of each case,

(b) the identity of the court having jurisdiction when the application is made,

(c) the case number (if any), and

(d) the capacity in which the outgoing office-holder was appointed.

(9) The application must be supported by evidence—

(a) setting out the circumstances which gave rise to it being expedient to appoint a replacement office-holder; and

(b) exhibiting the written consent to act of each person who is proposed to be appointed as replacement office-holder.

(10) Where all the cases in the schedule under paragraph (8) are in a county court or more than one county court—

(a) the application may be made to a district judge of a convenient county court having insolvency jurisdiction; and

(b) this Rule applies with appropriate modifications.

7.10D    Action following application for a block transfer order

(1) The registrar or district judge may in the first instance consider the application without a hearing and make such order as the registrar or district judge thinks just.

(2) In the first instance, the registrar or district judge may do any of the following—

(a) make an order directing the transfer to the High Court of those cases not already within its jurisdiction for the purpose only of the substantive application;

(b) if the documents are considered to be in order and that the matter is straightforward, make an order on the substantive application;

(c) give any directions which are considered to be necessary including (if appropriate) directions for the joinder of any additional respondents or requiring the service of the application on any person or requiring additional evidence to be provided; or

(d) if an order is not made on the substantive application, give directions for the further consideration of the substantive application by the registrar or district judge or a judge of the Chancery Division.

(3) The applicant must ensure that a sealed copy of every order transferring any case to the High Court and of every order which is made on a substantive application is lodged with the court having jurisdiction over each case affected by such order for filing on the court file relating to that case.

(4) In any case other than an application relating to the appointment of an administrator, in deciding to what extent (if any) the costs of making an application under this Rule should be paid as an expense of the insolvency proceedings to which the application relates, the factors to which the court must have regard include—

(a) the reasons for the making of the application;

(b) the number of cases to which the application relates;

(c) the value of assets comprised in those cases; and

(d) the nature and extent of the costs involved.

(5) Where an application relates to the appointment of an administrator and is made by a person under section 13 or paragraph 63, 91 or 95 of Schedule B1 to the Act, the costs of making that application are to be paid as an expense of the administration to which the application relates unless the court directs otherwise.

(6) Any appointment made under this Rule must be notified—

(a) to the Secretary of State as soon as reasonably practicable; and

(b) to—

(i) the creditors, and

(ii) such other persons as the court may direct,

in such manner as the court may direct.

(7) Where the application was made to the district judge under Rule 7.10C(10) this Rule applies with appropriate modifications.”.