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The Insolvency Rules (Northern Ireland) 1991

Type Ni-Statutory-Rule

Publication 1991-08-05

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(2) Where the application relates to a person falling within Article 113(1)(c) (promoters, past managers, etc.), it shall be accompanied by a report by the official receiver indicating—

(a) the grounds on which the person is supposed to fall within that sub-paragraph, and

(b) whether, in the official receiver's opinion, it is likely that service of the order on the person can be effected by post at a known address.

(3) If in his report the official receiver gives it as his opinion that, in a case to which paragraph (2) applies, there is no reasonable certainty that service by post will be effective, the court may direct that the order be served by some means other than, or in addition to, post.

(4) In a case to which paragraphs (2) and (3) apply, the court shall rescind the order if satisfied by the person to whom it is directed that he does not fall within Article 113(1)(c).

Notice of hearing

4.222

(1) The court's order shall appoint a venue for the examination of the person to whom it is directed (“the examinee”) and direct his attendance thereat.

(2) The official receiver shall give at least 14 day's notice of the hearing date—

(a) if a liquidator has been nominated or appointed, to him;

(b) if a special manager has been appointed, to him; and

(c) subject to any contrary direction of the court, to every creditor and contributory of the company who is known to the official receiver or is identified in the company's statement of affairs.

(3) The official receiver may, if he thinks fit, cause notice of the order to be given, by advertisement in one or more newspapers, at least 14 days before the hearing date; but, unless the court otherwise directs, there shall be no such advertisement before at least 7 days have elapsed since the examinee was served with the order.

Order on request by creditors or contributories

4.223

(1) Subject to paragraph (2), a request to the official receiver by creditors or contributories under Article 113(2) shall be made in writing and be accompanied by—

(a) a list of the creditors concurring with the request and the amounts of their respective claims in the liquidation or (as the case may be) of the contributories so concurring, with their respective values, and

(b) from each creditor or contributory concurring, written confirmation of his concurrence.

(2) Paragraph (1) does not apply if the requisitioning creditor's debt or, as the case may be, requisitioning contributory's shareholding is alone sufficient, without the concurrence of others.

(3) The request must specify the name of the proposed examinee, the relationship which he has, or has had, to the company and the reasons why his examination is requested.

(4) Before an application to the court is made on the request, the requisitionists shall deposit with the official receiver such sum as the latter may determine to be appropriate by way of security for the expenses of the hearing of a public examination, if ordered.

(5) Subject to paragraphs (6) and (7), the official receiver shall, within 28 days of receiving the request, make the application to the court required by Article 113(2).

(6) If the official receiver is of opinion that the request is an unreasonable one in the circumstances, he may apply to the court for an order relieving him from the obligation to make the application otherwise required by that paragraph.

(7) If the court so orders, and the application for the order was made ex parte, notice of the order shall be given forthwith by the official receiver to the requisitionists. If the application for an order is dismissed, the official receiver's application under Article 113(2) shall be made forthwith on conclusion of the hearing of the application first mentioned.

Witness unfit for examination

4.224

(1) Where the examinee is suffering from any mental disorder or physical affliction or disability rendering him unfit to undergo or attend for public examination, the court may, on application in that behalf, either stay the order for his public examination or direct that it shall be conducted in such manner and at such place as it thinks fit.

(2) Application under this Rule shall be made—

(a) by a person who has been appointed by a court in the United Kingdom or elsewhere to manage the affairs of, or to represent, the examinee, or

(b) by a relative or friend of the examinee who the court considers to be a proper person to make the application, or

(3) Where the application is made a person other than the official receiver, then—

(a) it shall, unless the examinee is a patient within the meaning of the Mental Health (Northern Ireland) Order 1986 [^f00014], be supported by the affidavit of a registered medical practitioner as to the examinee' s mental and physical condition;

(b) at least 7 days' notice of the application shall be given to the official receiver and the liquidator (if other than the official receiver); and

(c) before any order is made on the application, the applicant shall deposit with the official receiver such sum as the latter certifies to be necessary for the additional expenses of any examination that may be ordered on the application.

(4) An order made on the application may provide that the expenses of the examination are to be payable, as to a specified proportion, out of the deposit under paragraph (3)(c) instead of out of the assets.

(5) Where the application is made by the official receiver it may be made ex parte, and may be supported by evidence in the form of a report by the official receiver to the court.

Procedure at hearing

4.225

(1) The examinee shall at the hearing be examined on oath; and he shall answer all such questions as the court may put, or allow to be put, to him.

(2) Any of the persons allowed by Article 113(4) to question the examinee may, with the approval of the court (made known either at the hearing or in advance of it), appear by solicitor or counsel; or he may in writing authorise another person to question the examinee on his behalf.

(3) The examinee may at his own expense employ a solicitor with or without counsel, who may put to him such questions as the court may allow for the purpose of enabling him to explain or qualify any answers given by him, and may make representations on his behalf.

(4) There shall be made in writing such record of the examination as the court thinks proper. The record shall be read over either to or by the examinee, signed by him, and verified by affidavit at a venue fixed by the court.

(5) The written record may, in any proceedings (whether under the Order or otherwise) be used as evidence against the examinee of any statement made by him in the course of his public examination.

(6) If criminal proceedings have been instituted against the examinee, and the court is of opinion that the continuance of the hearing would be calculated to prejudice a fair trial of those proceedings, the hearing may be adjourned.

Adjournment

4.226

(1) The public examination may be adjourned by the court from time to time, either to a fixed date or generally.

(2) Where the examination has been adjourned generally, the court may at any time on the application of the official receiver or of the examinee—

(a) fix a venue for the resumption of the examination, and

(b) give directions as to the manner in which, and the time within which, notice of the resumed public examination is to be given to persons entitled to take part in it.

(3) Where application under paragraph (2) is made by the examinee, the court may grant it on terms that the expenses of giving the notices required by that paragraph shall be paid by him and that, before a venue for the resumed public examination is fixed, he shall deposit with the official receiver such sum as the latter considers necessary to cover those expenses.

Expenses of examination

4.227

(1) Where a public examination of the examinee has been ordered by the court on a creditors' or contributories' requisition under Rule 4.223, the court may order that the expenses of the examination are to be paid, as to a specified proportion, out of the deposit under Rule 4.223(4), instead of out of the assets.

(2) In no case do the costs of a public examination fall on the official receiver personally.

CHAPTER 20 — ORDER OF PAYMENT OF COSTS OUT OF ASSETS

General rule as to priority

4.228

(1) The expenses of the liquidation are payable out of the assets in the following order of priority—

(a) expenses properly chargeable or incurred by the official receiver or the liquidator in preserving, realising or getting in any of the assets of the company;

(b) any other expenses incurred or disbursements made by the official receiver or under his authority, including those incurred or made in carrying on the business of the company;

(i) the fee payable under any order made under Article 361 for the performance by the official receiver of his general duties as official receiver;

(ii) any repayable deposit lodged by the petitioner under any such order as security for the fee mentioned in head (i);

(d) any other fees payable under any order made under Article 361, including those payable to the official receiver, and any renumeration payable to him under general regulations;

(e) the cost of any security provided by a provisional liquidator, liquidator or special manager in accordance with the Order or the Rules;

(f) the remuneration of the provisional liquidator (if any);

(g) any deposit lodged on an application for the appointment of a provisional liquidator;

(h) the costs of the petitioner, and of any person appearing on the petition whose costs are allowed by the court;

(j) the remuneration of the special manager (if any);

(k) any amount payable to a person employed or authorised, under Chapter 6, to assist in the preparation of a statement of affairs or of accounts;

(l) any allowance made, by order of the court, towards costs on an application for release from the obligation to submit a statement of affairs, or for an extension of time for submitting such a statement;

(m) any necessary disbursements by the liquidator in the course of his administration (including any expenses incurred by members of the liquidation committee or their representatives and allowed by the liquidator under Rule 4.177, but not including any payment of corporation tax in circumstances referred to in sub-paragraph (p));

(n) the remuneration or emoluments of any person who has been employed by the liquidator to perform any services for the company, as required or authorised by or under the Order or the Rules;

(o) the remuneration of the liquidator, up to any amount not exceeding that which is payable to the official receiver under general regulations;

(p) the amount of any corporation tax on chargeable gains accruing on the realisation of any asset of the company (without regard to whether the realisation is effected by the liquidator, a secured creditor, or a receiver or manager appointed to deal with a security);

(q) the balance, after payment of any sums due under sub-paragraph (o), of any remuneration due to the liquidator.

(2) The costs of employing a shorthand writer, if appointed by an order of the court made at the instance of the official receiver in connection with an examination, rank in priority with those specified in paragraph (1)(a). The costs of employing a shorthand writer so appointed in any other case rank after the allowance mentioned in paragraph (1)(l) and before the disbursements mentioned in paragraph (1)(m).

(3) Paragraph (2) shall apply to the costs of a mechanical recording as it applies to the costs of a shorthand writer.

(4) Any expenses incurred in holding an examination under Rule 4.224 (examinee unfit), where the application for it is made by the official receiver, rank in priority with those specified in paragraph (1)(a).

Winding up commencing as voluntary

4.229

In a winding up by the court which follows immediately on a voluntary winding up (whether members' voluntary or creditors' voluntary), such remuneration of the voluntary liquidator and costs of the voluntary liquidation as the court may allow are to rank in priority with the expenses specified in Rule 4.228(1)(a).

Saving for powers of the court

4.230

(1) In a winding up by the court, the priorities laid down by Rules 4.228 and 4.229 are subject to the power of the court to make orders under Article 134, where the assets are insufficient to satisfy the liabilities.

(2) Nothing in those Rules applies to or affects the power of any court, in proceedings by or against the company, to order costs to be paid by the company, or the liquidator; nor do they affect the rights of any person to whom such costs are ordered to be paid.

CHAPTER 21 — MISCELLANEOUS RULES

SECTION A: RETURN OF CAPITAL — (NO CVL APPLICATION)

Application to court for order authorising return

4.231

(1) This Rule applies where the liquidator intends to apply to the court for an order authorising a return of capital.

(2) The application shall be accompanied by a list of the persons to whom the return is to be made.

(3) The list shall include the same details of those persons as appears in the settled list of contributories, with any necessary alterations to take account of matters after settlement of the list, and the amount to be paid to each person.

(4) Where the court makes an order authorising the return, it shall send a sealed copy of the order to the liquidator.

Procedure for return

4.232

(1) The liquidator shall inform each person to whom a return is made of the rate of return per share, and whether it is expected that any further return will be made.

(2) Any payments made by the liquidator by way of the return may be sent by post, unless for any reason another method of making the payment has been agreed with the payee.

SECTION B: CONCLUSION.OF WINDING UP

Statements to registrar under Article 162

4.233

(1) Subject to paragraphs (3) and (4), the statement which Article 162 requires the liquidator to send to the registrar, if the winding up is not concluded within one year from its commencement, shall be sent not more than 30 days after the expiration of that year, and thereafter every year until the winding up is concluded.

(2) For this purpose the winding up is concluded at the date of the dissolution of the company, except that if at that date any assets or funds of the company remain unclaimed or undistributed in the hands or under the control of the liquidator or any former liquidator, the winding up is not concluded until those assets or funds have either been distributed or paid into the Insolvency Account.

(3) Subject to paragraph (2), the liquidator's final statement shall be sent forthwith after the conclusion of the winding up.

(4) No statement shall be required to be delivered under this Rule where the return of the final meeting in respect of the company under Articles 80 or 92 is delivered before the date at which the statement is to be delivered and that return shows that no assets or funds of the company remain unclaimed or undistributed in the hands or under the control of the liquidator or any former liquidator; but where this paragraph applies, the liquidator shall deliver a copy of that return to the registrar.

(5) Every statement sent to the registrar under Article 162 shall be in duplicate.

SECTION C: DISSOLUTION AFTER WINDING UP

Department's directions under Articles 168, 169

4.234

(1) Where the Department gives a direction under—

(a) Article 168 (application for directions concerning a company's early dissolution), or

(b) Article 169 (application for postponement of dissolution),

he shall send 2 copies of the direction to the applicant for it.

(2) Of those copies one shall be sent by the applicant to the registrar, to comply with Article 168(5) or, as the case may be, 169(4).

Procedure following appeal under Article 168(4) or 169(3)

4.235

Following an appeal under Article 168(4) or 169(3) (against a decision of the Department under the applicable Article) the court shall send 2 sealed copies of its order to the person in whose favour the appeal was determined; and that party shall send one of the copies to the registrar to comply with Article 168(5) or, as the case may be, 169(4).

CHAPTER 22 — LEAVE TO ACT AS DIRECTOR, ETC. OF COMPANY WITH PROHIBITED NAME (ARTICLE 180)

Preliminary

4.236

This Chapter—

(a) relates to the leave required under Article 180 (restriction on re-use of name of company in insolvent liquidation) for a person to act as mentioned in Article 180(3) in relation to a company with a prohibited name,

(b) prescribes the cases excepted from that provision, that is to say, those in which a person to whom the Article applies may so act without that leave.

Application for leave under Article 180(3)

4.237

When considering an application for leave under Article 180, the court may call on the liquidator, or any former liquidator, of the liquidating company for a report of the circumstances in which that company became insolvent, and the extent (if any) of the applicant's apparent responsibility for its doing so.

First excepted case

4.238

(1) Where a company (“the successor company”) acquires the whole, or substantially the whole, of the business of an insolvent company, under arrangements made by an insolvency practitioner acting as its liquidator, administrator or administrative receiver, or as supervisor of a voluntary arrangement under Part II of the Order, the successor company may for the purposes of Article 180 give notice under this Rule to the insolvent company's creditors.

(2) To be effective, the notice must be given within 28 days from the completion of the arrangements, to all creditors of the insolvent company of whose addresses the successor company is aware in that period; and it must specify—

(a) the name and registered number of the insolvent company and the circumstances in which its business has been acquired by the successor company,

(b) the name which the successor company has assumed, or proposes to assume for the purpose of carrying on the business, if that name is or will be a prohibited name under Article 180, and

(3) The notice may name a person to whom Article 180 may apply as having been a director or shadow director of the insolvent company, and give particulars as to the nature and duration of that directorship, with a view to his being a director of the successor company or being otherwise associated with its management.

(4) If the successor company has effectively given notice under this Rule to the insolvent company's creditors, a person who is so named in the notice may act in relation to the successor company in any of the ways mentioned in Article 180(3), notwithstanding that he has not the leave of the court under that Article.

Second excepted case

4.239

(1) Where a person to whom Article 180 applies as having been a director or shadow director of the liquidating company applies for leave of the court under that Article not later than 7 days from the date on which the company went into liquidation, he may, during the period specified in paragraph (2), act in any of the ways mentioned in Article 180(3) notwithstanding that he has not the leave of the court under that Article.

(2) The period referred to in paragraph (1) begins with the day on which the company goes into liquidation and ends either on the day falling six weeks after that date or on the day on which the court disposes of the application for leave under Article 180, whichever of those days occurs first.

Third excepted case

4.240

The court's leave under Article 180(3) is not required where the company there referred to, though known by a prohibited name within the meaning of the Article—

(a) has been known by that name for the whole of the period of 12 months ending with the day before the liquidating company went into liquidation, and

(b) has not at any time in those 12 months been dormant within the meaning of Article 260(5) of the Companies Order.

PARTS 5 AND 6 — INSOLVENCY OF INDIVIDUALS; BANKRUPTCY

PART 5 — INDIVIDUAL VOLUNTARY ARRANGEMENTS

CHAPTER 1 — DEEDS OF ARRANGEMENT

Service of application under Articles 221(3) or 224

5.01

(1) An application under Article 221(3) shall be served on the trustee named in the deed.

(2) An application under Article 224 shall be served—

(a) if made by the trustee, on the debtor and any creditor or other person to be affected thereby;

(b) if made by the debtor, on the trustee and any creditor or other person to be affected thereby; and

CHAPTER 2 — VOLUNTARY ARRANGEMENTS

Introductory

5.02

(1) This Chapter applies where a debtor, with a view to an application for an interim order under Chapter II of Part VIII of the Order, makes a proposal to his creditors for a voluntary arrangement.

(2) The Rules apply whether the debtor is an undischarged bankrupt (“Case 1”) or he is not (“Case 2”).

SECTION A: THE DEBTOR'S PROPOSAL

Preparation of proposal

5.03

The debtor shall prepare for the intended nominee a proposal on which (with or without amendments to be made under Rule 5.04(3)) to make his report to the court under Article 230.

Contents of proposal

5.04

(1) The debtor's proposal shall provide a short explanation why, in his opinion, a voluntary arrangement is desirable, and give reasons why his creditors may be expected to concur with such an arrangement.

(2) The following matters shall be stated, or otherwise dealt with, in the proposal—

(a) the following matters, so far as within the debtor's immediate knowledge—

(i) his assets, with an estimate of their respective values,

(ii) the extent (if any) to which the assets are charged in favour of creditors,

(iii) the extent (if any) to which particular assets are to be excluded from the voluntary arrangement;

(b) particulars of any property, other than assets of the debtor himself, which is proposed to be included in the voluntary arrangement, the source of such property and the terms on which it is to be made available for inclusion;

(c) the nature and amount of the debtor's liabilities (so far as within his immediate knowledge), the manner in which they are proposed to be met, modified, postponed or otherwise dealt with by means of the voluntary arrangement and (in particular)—

(i) how it is proposed to deal with preferential creditors (defined in Article 232(9)) and creditors who are, or claim to be, secured,

(ii) how associates of the debtor (being creditors of his) are proposed to be treated under the voluntary arrangement, and

(iii) in Case 1 whether, to the debtor's knowledge, claims have been made under Article 312 (transactions at an undervalue), Article 313 (preferences) or Article 316 (extortionate credit transactions), or there are circumstances giving rise to the possibility of such claims, and in Case 2 whether there are circumstances which would give rise to the possibility of such claims in the event that he should be adjudged bankrupt, and, where any such circumstances are present, whether, and if so how, it is proposed under the voluntary arrangement to make provision for wholly or partly indemnifying the insolvent estate in respect of such claims;

(d) whether any, and if so what, guarantees have been given of the debtor's debts by other persons, specifying which (if any) of the guarantors are associates of his;

(e) the proposed duration of the voluntary arrangement;

(f) the proposed dates of distributions to creditors, with estimates of their amounts;

(g) the amount proposed to be paid to the nominee (as such) by way of remuneration and expenses;

(h) the manner in which it is proposed that the supervisor of the voluntary arrangement should be remunerated, and his expenses defrayed;

(j) whether, for the purposes of the voluntary arrangement, any guarantees are to be offered by any persons other than the debtor, and whether (if so) any security is to be given or sought;

(k) the manner in which funds held for the purposes of the voluntary arrangement are to be banked, invested or otherwise dealt with pending distribution to creditors;

(l) the manner in which funds held for the purpose of payment to creditors, and not so paid on the termination of the voluntary arrangement, are to be dealt with;

(m) if the debtor has any business, the manner in which it is proposed to be conducted during the course of the voluntary arrangement;

(n) details of any further credit facilities which it is intended to arrange for the debtor, and how the debts so arising are to be paid;

(o) the functions which are to be undertaken by the supervisor of the voluntary arrangement;

(p) the name, address and qualification of the person proposed as supervisor of the voluntary arrangement, and confirmation that he is (so far as the debtor is aware) qualified to act as an insolvency practitioner in relation to him.

(3) With the agreement in writing of the nominee, the debtor's proposal may be amended at any time up to the delivery of the farmer's report to the court under Article 230.

Notice to intended nominee

5.05

(1) The debtor shall give to the intended nominee written notice of his proposal.

(2) The notice, accompanied by a copy of the proposal, shall be delivered either to the intended nominee himself, or to a person authorised to take delivery of documents on his behalf.

(3) If the intended nominee agrees to act, he shall cause a copy of the notice to be endorsed to the effect that it has been received by him on a specified date.

(4) The copy of the notice so endorsed shall be returned by the nominee forthwith to the debtor at an address specified by him in the notice for that purpose.

(5) Where (in Case 1) the debtor gives notice of his proposal to the official receiver and (if any) the trustee, the notice must contain the name and address of the insolvency practitioner who has agreed to act as nominee.

Application for interim order

5.06

(1) An application to the court for an interim order under Part VIII of the Order shall be accompanied by an affidavit of the following matters—

(a) the reasons for making the application;

(b) particulars of any execution or other legal process which, to the debtor's knowledge, has been commenced against him;

(d) that no previous application for an interim order has been made by or in respect of the debtor in the period of I 2 months ending with the date of the affidavit; and

(e) that the nominee under the proposal (naming him) is a person who is qualified to act as an insolvency practitioner in relation to the debtor, and is willing to act in relation to the proposal.

(2) A copy of the notice to the intended nominee under Rule 5.05, endorsed to the effect that he agrees so to act, and a copy of the debtor's proposal given to the nominee under that Rule shall be exhibited to the affidavit.

(3) On receiving the application and affidavit, the court shall fix a venue for the hearing of the application.

(4) The applicant shall give at least 2 days' notice of the hearing date—

(a) in Case 1, to the bankrupt, the official receiver and the trustee (whichever of those three is not himself the applicant),

(b) in Case 2, to any person who (to the debtor's knowledge) has presented a bankruptcy petition against him, and

Hearing of the application

5.07

(1) Any of the persons who have been given notice under Rule 5.06(4) may appear or be represented at the hearing of the application.

(2) The court, in deciding whether to make an interim order on the application, shall take into account any representations made by or on behalf of any of those persons (in particular, whether an order should be made containing such provision as is referred to in Article 229(3) and (4)).

(3) If the court makes an interim order, it shall fix a venue for consideration of the nominee's report. Subject to paragraph (4), the date for that consideration shall be not later than that on which the interim order ceases to have effect under Article 229(6).

(4) An order under Article 230(4) extending the period for which the interim order has effect shall include a provision extending the time for filing the nominee's report to a date not less than 2 days before the date of expiration of that extended period and alter the venue fixed for consideration of the nominee's report to the last mentioned date.

(5) If an order is made under paragraph (4), the nominee shall give at least 2 day's notice thereof to the debtor and any other person to whom notice of the hearing of the application for the interim order was given pursuant to Rule 5.06(4).

Action to follow making of order

5.08

(1) Where an interim order is made, the court shall forthwith—

(a) send at least 2 sealed copies of the order to the person who applied for it; and that person shall serve one of the copies on the nominee under the debtor's proposal, and

(b) send to the Enforcement of Judgments Office notice of the making of the order and of the date the interim order ceases to have effect.

(2) The applicant shall also forthwith give notice of the making of the order to any person who was given notice of the hearing pursuant to Rule 5.06(4) and was not present or represented at it.

Extension of operation of interim order

5.09

If an order is made extending the period for which an interim order has effect, the court shall send to the Enforcement of Judgments Office notice of the making of the order and of the date to which the operation of the interim order has been extended.

Discharge of interim order

5.10

If an order is made discharging an interim order, the court shall send notice of the making of the order to the Enforcement of Judgments Office.

Statement of affairs

5.11

(1) In Case 1, if the debtor has already delivered a statement of affairs under Article 246 (debtor's petition) or 261 (petition other than debtor's), he need not deliver a further statement unless so required by the nominee, with a view to supplementing or amplifying the former one.

(2) In Case 2, the debtor shall, within 7 days after his proposal is delivered to the nominee, or within such longer time as the latter may allow, deliver to the nominee a statement of his (the debtor's) affairs.

(3) The statement shall comprise the following particulars (supplementing or amplifying, so far as is necessary for clarifying the state of the debtor's affairs, those already given in his proposal)—

(a) a list of his assets divided into such categories as are appropriate for easy identification, with estimated values assigned to each category;

(b) in the case of any property on which a claim against the debtor is wholly or partly secured, particulars of the claim and its amount, and of how and when the security was created;

(c) the names and addresses of the debtor's preferential creditors (defined in Article 232(9)), with the amounts of their respective claims;

(d) the names and addresses of the debtor's unsecured creditors, with the amounts of their respective claims;

(e) particulars of any debts owed by or to the debtor to or by persons who are associates of his;

(f) such other particulars (if any) as the nominee may in writing require to be furnished for the purposes of making his report to the court on the debtor's proposal.

(4) Subject to paragraph 5, the statement of affairs shall be made up to a date not earlier than 2 weeks before the date of the notice to the nominee under Rule 5.05.

(5) The nominee may allow an extension of that period to the nearest practicable date (not earlier than 2 months before the date of the notice under Rule 5.05); and if he does so, he shall give his reasons in his report to the court on the debtor's proposal.

(6) The statement shall be certified by the debtor as correct, to the best of his knowledge and belief.

Additional disclosure for assistance of nominee

5.12

(1) If it appears to the nominee that he cannot properly prepare his report on the basis of information in the debtor's proposal and statement of affairs, he may call on the debtor to provide him with—

(a) further and better particulars as to the circumstances in which, and the reasons why, he is insolvent or (as the case may be) threatened with insolvency;

(b) particulars of any previous proposals which have been made by him under Part VIII of the Order;

(c) any further information with respect to his affairs which the nominee thinks necessary for the purposes of his report.

(2) The nominee may call on the debtor to inform him whether and in what circumstances he has at any time—

(a) been concerned in the affairs of any company (whether or not incorporated in Northern Ireland) which has become insolvent, or

(b) been adjudged bankrupt, or entered into an arrangement with his creditors.

(3) For the purpose of enabling the nominee to consider the debtor's proposal and prepare his report on it, the latter must give him access to his accounts and records.

Nominee's report on the proposal

5.13

(1) The nominee's report shall be delivered by him to the court not less than 2 days before the interim order ceases to have effect.

(2) With his report the nominee shall deliver—

(a) a copy of the debtor's proposal (with amendments, if any, authorised under Rule 5.04(3)); and

(b) a copy or summary of any statement of affairs provided by the debtor.

(3) If the nominee makes known his opinion that a meeting of the debtor's creditors should be summoned under Article 231, his report shall have annexed to it his comments on the debtor's proposal.

(4) If the nominee's opinion is otherwise than under paragraph (3), he shall give his reasons for that opinion.

(5) The court shall cause the nominee's report to be endorsed with the date on which it is filed in court. Any creditor of the debtor is entitled, at all reasonable times on any business day, to inspect the file.

(6) In Case 1, the nominee shall send to the official receiver and (if any) the trustee—

(a) a copy of the debtor's proposal,

(b) a copy of his (the nominee's) report and his comments accompanying it (if any), and

(7) In Case 2, the nominee shall send a copy of each of those documents to any person who has presented a bankruptcy petition against the debtor.

Replacement of nominee

5.14

Where the debtor intends to apply to the court under Article 230(3) for the nominee to be replaced, he shall give to the nominee and the proposed new nominee at least 7 days' notice of his application, together with a copy of the supporting affidavit.

SECTION B: ACTION ON THE PROPOSAL; CREDITORS' MEETING

Consideration of nominee's report

5.15

(1) At the hearing by the court to consider the nominee's report any of the persons who have been given notice under Rule 5.06(4) may appear or be represented.

(2) Rule 5.08 applies to any order made by the court at the hearing.

Summoning of creditors' meeting

5.16

(1) If in his report the nominee states that in his opinion a meeting of creditors should be summoned to consider the debtor's proposal, the date on which the meeting is to be held shall be not less than 14 days from that on which the nominee's report is filed in court under Rule 5.13, nor more than 28 days from that on which that report is considered by the court under Rule 5.15.

(2) Notices calling the meeting shall be sent by the nominee, at least 14 days before the day fixed for it to be held, to all the creditors specified in the debtor's statement of affairs, and any other creditors of whom the nominee is otherwise aware.

(3) Each notice sent under this Rule shall state that the nominee's report has been filed in court and shall state the effect of Rule 5.21(1), (3) and (4) (requisite majorities); and with it there shall be sent—

(a) a copy of the proposal,

(b) a copy of the statement of affairs or, if the nominee thinks fit, a summary of it (the summary to include a list of the creditors and the amounts of their debts), and

Creditors' meeting: supplementary

5.17

(1) Subject to paragraphs (2) and (3), in fixing the venue for the creditors' meeting, the nominee shall have regard to the convenience of creditors.

(2) The meeting shall be summoned for commencement between 10.00 and 16.00 hours on a business day.

(3) With every notice summoning the meeting there shall be sent out forms of proxy.

The chairman at the meeting

5.18

(1) Subject to paragraph (2), the nominee shall be chairman of the creditors' meeting.

(2) If for any reason the nominee is unable to attend, he may nominate another person to act as chairman in his place; but a person so nominated must be either—

(a) a person qualified to act as an insolvency practitioner in relation to the debtor, or

(b) an employee of the nominee or his firm who is experienced in insolvency matters.

The chairman as proxy-holder

5.19

The chairman shall not by virtue of any proxy held by him vote to increase or reduce the amount of the remuneration or expenses of the nominee or the supervisor of the proposed voluntary arrangement, unless the proxy specifically directs him to vote in that way.

Voting rights

5.20

(1) Subject to paragraphs (3) to (8), every creditor who was given notice of the creditors' meeting is entitled to vote at the meeting or any adjournment of it.

(2) In Case 1, votes are calculated according to the amount of the creditor's debt as at the date of the bankruptcy order, and in Case 2 according to the amount of the debt as at the date of the meeting.

(3) A creditor shall not vote in respect of a debt for an unliquidated amount, or any debt whose value is not ascertained, except where the chairman agrees to put upon the debt an estimated minimum value for the purpose of entitlement to vote.

(4) The chairman has power to admit or reject a creditor's claim for the purpose of his entitlement to vote, and the power is exercisable with respect to the whole or any part of the claim.

(5) The chairman's decision on entitlement to vote is subject to appeal to the court by any creditor, or by the debtor.

(6) If the chairman is in doubt whether a claim should be admitted or rejected, he shall mark it as objected to and allow the creditor to vote, subject to his vote being subsequently declared invalid if the objection to the claim is sustained.

(7) Subject to paragraph (8), if on an appeal the chairman's decision is reversed or varied, or a creditor's vote is declared invalid, the court may order another meeting to be summoned, or make such other order as it thinks just.

(8) The court's power to make an order under paragraph (7) is exercisable only if it considers that the matter is such as to give rise to unfair prejudice or a material irregularity.

(9) An application to the court by way of appeal under this Rule against the chairman's decision shall not be made after the end of the period of 28 days beginning with the day on which the chairman's report to the court is made under Article 233.

(10) The chairman is not personally liable for any costs incurred by any person in respect of an appeal under this Rule.

Requisite majorities

5.21

(1) Subject to paragraphs (3) to (7), at the creditors' meeting for any resolution to pass approving any proposal or modification there must be a majority in excess of three-quarters in value of the creditors present in person or by proxy and voting on the resolution.

(2) The same applies in respect of any other resolution proposed at the meeting, but substituting one-half for three-quarters.

(3) In the following cases there is to be left out of account a creditor's vote in respect of any claim or part of a claim—

(a) where written notice of the claim was not given, either at the meeting or before it, to the chairman or the nominee;

(b) where the claim or part is secured;

(c) where the claim is in respect of a debt wholly or partly on, or secured by, a current bill of exchange or promissory note, unless the creditor is willing—

(i) to treat the liability to him on the bill or note of every person who is liable on it antecedently to the debtor, and against whom a bankruptcy order has not been made (or, in the case of a company, which has not gone into liquidation), as a security in his hands, and

(ii) to estimate the value of the security and (for the purpose of entitlement to vote, but not of any distribution under the voluntary arrangement) to deduct it from his claim.

(4) Any resolution is invalid if those voting against it include more than half in value of the creditors, counting in these latter only those—

(a) to whom notice of the meeting was sent;

(b) whose votes are not to be left out of account under paragraph (3); and

(5) It is for the chairman of the meeting to decide whether under this Rule—

(a) a vote is to be left out of account in accordance with paragraph (3), or

(b) a person is an associate of the debtor for the purposes of paragraph (4)(c);

and in relation to the second of these 2 cases the chairman is entitled to rely on the information provided by the debtor's statement of affairs or otherwise in accordance with this Part.

(6) If the chairman uses a proxy contrary to Rule 5.19, his vote with that proxy does not count towards any majority under this Rule.

(7) Paragraphs (5) to (10) of Rule 5.20 apply as regards an appeal against the decision of the chairman under this Rule.

Proceedings to obtain agreement on the proposal

5.22

(1) On the day on which the creditors' meeting is held, it may from time to time be adjourned.

(2) If on that day the requisite majority for the approval of the voluntary arrangement (with or without modifications) has not been obtained, the chairman may, and shall if it is so resolved, adjourn the meeting for not more than 14 days.

(3) If there are subsequently further adjournments, the final adjournment shall not be to a day later than 14 days after that on which the meeting was originally held.

(4) If the meeting is adjourned under paragraph (2), notice of the fact shall be given by the chairman forthwith to the court.

(5) If following any final adjournment of the meeting the proposal (with or without modifications) is not agreed to, it is deemed rejected.

SECTION C: IMPLEMENTATION OF THE VOLUNTARY ARRANGEMENT

Resolutions to follow approval

5.23

(1) If the voluntary arrangement is approved (with or without modifications), a resolution may be taken by the creditors, where two or more insolvency practitioners are appointed to act as supervisor, on the question whether acts to be done in connection with the voluntary arrangement may be done by any one of them, or must be done by both or all.

(2) If at the creditors' meeting a resolution is moved for the appointment of some person other than the nominee to be supervisor of the voluntary arrangement, there must be produced to the chairman, at or before the meeting—

(a) that person's written consent to act (unless he is present and then and there signifies his consent), and

(b) his written confirmation that he is qualified to act as an insolvency practitioner in relation to the debtor.

Hand-over of property, etc. to supervisor

5.24

(1) Forthwith after the approval of the voluntary arrangement, the debtor in Case 2, and the official receiver or trustee in Case 1, shall do all that is required for putting the supervisor into possession of the assets included in the voluntary arrangement.

(2) On taking possession of the assets in Case 1, the supervisor shall discharge any balance due to the official receiver and (if other) the trustee by way of remuneration or on account of—

(a) costs properly incurred and payable under the Order or the Rules, and

(b) any advances made in respect of the insolvent estate, together with interest on such advances at the rate applicable to a money judgment of the High Court at the date of the bankruptcy order.

(3) Alternatively in Case I, the supervisor must, before taking possession, give the official receiver or the trustee a written undertaking to discharge any such balance out of the first realisation of assets.

(4) The official receiver and (if other) the trustee has in Case 1 a charge on the assets included in the voluntary arrangement in respect of any sums due under paragraph (2) until they have been discharged, subject only to the deduction from realisations by the supervisor of the proper costs of realisation.

(5) Any sums due to the official receiver take priority over those due to a trustee.

(6) The supervisor shall from time to time out of the realisation of assets discharge all guarantees properly given by the official receiver or the trustee for the benefit of the estate, and shall pay all their expenses.

Report of creditors' meeting

5.25

(1) A report of the creditors' meeting shall be prepared by the chairman of the meeting.

(2) The report shall—

(a) state whether the proposal for a voluntary arrangement was approved or rejected and, if approved, with what (if any) modifications;

(b) set out the resolutions which were taken at the meeting, and the decision on each one;

(c) list the creditors (with their respective values) who were present or represented at the meeting, and how they voted on each resolution; and

(d) include such further information (if any) as the chairman thinks it appropriate to make known to the court.

(3) A copy of the chairman's report shall, within 4 days of the meeting being held, be filed in court; and the court shall cause that copy to be endorsed with the date of filing.

(4) The persons to whom notice of the result is to be given, under Article 233(1), are all those who were sent notice of the meeting under this Part and, in Case 1, the official receiver and (if any) the trustee.

(5) The notice shall be sent immediately after a copy of the chairman's report is filed in court under paragraph (3).

Register of voluntary arrangements

5.26

(1) The Department shall maintain a register of voluntary arrangements, and shall enter in it all such matters as are reported to it in pursuance of Rules 5.27, 5.28 and 5.32.

(2) The register shall be open to public inspection.

Reports to Department

5.27

(1) Immediately after the chairman of the creditors' meeting has filed in court a report that the meeting has approved the voluntary arrangement, he shall report to the Department the following details of the voluntary arrangement—

(a) the name and address of the debtor;

(b) the date on which the voluntary arrangement was approved by the creditors; and

(2) A person who is appointed to act as supervisor of a voluntary arrangement (whether in the first instance or by way of replacement of another person previously appointed) shall forthwith give written notice to the Department of his appointment.

(3) If he vacates office as supervisor, he shall forthwith give written notice of that fact also to the Department.

Revocation or suspension of the voluntary arrangement

5.28

(1) This Rule applies where the court makes an order of revocation or suspension under Article 236.

(2) The person who applied for the order shall serve sealed copies of it—

(a) in Case 1, on the debtor, the official receiver and the trustee;

(b) in Case 2, on the debtor; and

(3) If the order includes a direction by the court under Article 236(4)(b) for any further creditors' meeting to be summoned, notice shall also be given (by the person who applied for the order) to whoever is, in accordance with the direction, required to summon the meeting.

(4) The debtor (in Case 2) and the trustee, or if there is no trustee, the official receiver (in Case 1) shall—

(a) forthwith after receiving a copy of the court's order, give notice of it to all persons who were sent notice of the creditors' meeting which approved the voluntary arrangement or who, not having been sent that notice, appear to be affected by the order;

(b) within 7 days of their receiving a copy of the order (or within such longer period as the court may allow), give notice to the court whether it is intended to make a revised proposal to creditors, or to invite re-consideration of the original proposal.

(5) The person on whose application the order of revocation or suspension was made shall, within 7 days after the making of the order, give written notice of it to the Department.

Supervisor's accounts and reports

5.29

(1) Where the voluntary arrangement authorises or requires the supervisor—

(a) to carry on the debtor's business or to trade on his behalf or in his name, or

(b) to realise assets of the debtor or (in Case 1) belonging to the estate, or

he shall keep accounts and records of his acts and dealings in and in connection with the voluntary arrangement, including in particular records of all receipts and payments of money.

(2) Subject to paragraph (3), the supervisor shall, not less often than once in every 12 months beginning with the date of his appointment, prepare an abstract of such receipts and payments, and send copies of it, accompanied by his report on the progress and efficacy of the arrangement, to—

(a) the court,

(b) the debtor, and

(3) If in any period of 12 months the supervisor has made no payments and had no receipts, he shall at the end of that period send a statement to that effect accompanied by his report to all who are specified in paragraph (2)(a) to (c).

(4) An abstract provided under paragraph (2) shall relate to a period beginning with the date of the supervisor's appointment or (as the case may be) the day following the end of the last period for which an abstract was prepared under this Rule; and copies of the abstract shall be sent out, as required by paragraph (2), within the 2 months following the end of the period to which the abstract relates.

(5) If the supervisor is not authorised as mentioned in paragraph (1), he shall, not less often than once in every 12 months beginning with the date of his appointment, send to all those specified in paragraph (2)(a) to (c) a report on the progress and efficacy of the voluntary arrangement.

(6) The court may, on application by the supervisor, vary the dates on which the obligation to send abstracts or reports arises.

Production of accounts and records to Department

5.30

(1) The Department may at any time during the course of the voluntary arrangement or after its completion require the supervisor to produce for inspection—

(a) his records and accounts in respect of the voluntary arrangement, and

(b) copies of abstracts and reports prepared in compliance with Rule 5.29.

(2) The Department may require production either at the premises of the supervisor or elsewhere; and it is the duty of the supervisor to comply with any requirement imposed on him under this Rule.

(3) The Department may cause any accounts and records produced to it under this Rule to be audited; and the supervisor shall give to the Department such further information and assistance as it needs for the purposes of its audit.

Costs

5.31

The costs that may be incurred for any purposes of the voluntary arrangement are—

(a) any disbursements made by the nominee prior to the approval of the voluntary arrangement, and any remuneration for his services as such agreed between himself and the debtor, the official receiver or the trustee;

(b) any costs which—

(i) are sanctioned by the terms of the voluntary arrangement, or

(ii) would be payable, or correspond to those which would be payable, in the debtor's bankruptcy.

Completion of the arrangement

5.32

(1) Not more than 28 days after the final completion of the voluntary arrangement, the supervisor shall send to all creditors of the debtor who are bound by the voluntary arrangement, and to the debtor, a notice that the voluntary arrangement has been fully implemented.

(2) With the notice there shall be sent to each of those persons a copy of a report by the supervisor summarising all receipts and payments made by him in pursuance of the voluntary arrangement, and explaining any difference in the actual implementation of it as compared with the proposal as approved by the creditors' meeting.

(3) The supervisor shall, within the 28 days mentioned in paragraph (1), send to the Department and to the court a copy of the notice under paragraph (1), together with a copy of the report under paragraph (2).

(4) The court may, on application by the supervisor, extend the period of 28 days under paragraphs (1) and (3).

SECTION D: GENERAL

False representations, etc.

5.33

(1) The debtor commits an offence if he makes any false representation or commits any other fraud for the purpose of obtaining the approval of his creditors to a proposal for a voluntary arrangement under Part VIII of the Order.

(2) A person guilty of an offence under this Rule is liable to imprisonment or a fine, or both.

PART 6 — BANKRUPTCY

CHAPTER 1 — THE STATUTORY DEMAND

Form and content of statutory demand

6.001

(1) A statutory demand under Article 242 must be dated, and be signed either by the creditor himself or by a person stating himself to be authorised to make the demand on the creditor's behalf.

(2) The statutory demand must specify whether it is made under Article 242(1) (debt payable immediately) or Article 242(2) (debt not so payable).

(3) The demand must state the amount of the debt, and the consideration for it (or, if there is no consideration, the way in which it arises) and—

(a) if made under Article 242(1) and founded on a judgment or order of a court, it must give details of the judgment or order, and

(b) if made under Article 242(2), it must state the grounds on which it is alleged that the debtor appears to have no reasonable prospect of paying the debt.

(4) If the amount claimed in the demand includes—

(a) any charge by way of interest not previously notified to the debtor as a liability of his, or

(b) any other charge accruing from time to time,

the amount or rate of the charge must be separately identified, and the grounds on which payment of it is claimed must be stated.

(5) The amount claimed in respect of a charge mentioned in paragraph (4) must be limited to that which has accrued due at the date of the demand.

(6) If the creditor holds any security in respect of the debt, the full amount of the debt shall be specified, but—

(a) there shall in the demand be specified the nature of the security, and the value which the creditor puts upon it as at the date of the demand, and

(b) the amount of which payment is claimed by the demand shall be the full amount of the debt, less the amount specified as the value of the security.

Information to be given in statutory demand

6.002

(1) The statutory demand must include an explanation to the debtor of the following matters—

(a) the purpose of the demand, and the fact that, if the debtor does not comply with the demand, bankruptcy proceedings may be commenced against him;

(b) the time within which the demand must be complied with, if that consequence is to be avoided;

(d) his right to apply to the court for the statutory demand to be set aside.

(2) The demand must specify one or more named individuals with whom the debtor may, if he wishes, enter into communication with a view to securing or compounding for the debt to the satisfaction of the creditor or (as the case may be) establishing to the creditor's satisfaction that there is a reasonable prospect that the debt will be paid when it falls due.

(3) In the case of any individual named in the demand mentioned in paragraph (2), his address and telephone number (if any) must be given.

Requirements as to service

6.003

(1) Rule 6.010-CP has effect as regards service of the statutory demand, and proof of that service by affidavit to be filed with a bankruptcy petition.

(2) The creditor is, by virtue of the Rules, under an obligation to do all that is reasonable for the purpose of bringing the statutory demand to the debtor's attention and, if practicable in the particular circumstances, to cause personal service of the demand to be effected.

(3) Where the statutory demand is for payment of a sum due under a judgment or order of any court and the creditor knows, or believes with reasonable cause—

(a) that the debtor has absconded or is keeping out of the way with a view to avoiding service, and

(b) there is no real prospect of the sum due being recovered by execution or other process,

the demand may be advertised in one or more newspapers; and the time limited for compliance with the demand runs from the date of the advertisement's appearance or (as the case may be) its first appearance.

Application to set aside statutory demand

6.004

(1) The debtor may, within the period allowed by this Rule, apply to the court for an order setting the statutory demand aside.

(2) The period mentioned in paragraph (1) is 18 days from the date of the service on him of the statutory demand or, where the demand is advertised in a newspaper pursuant to Rule 6.003, from the date of the advertisement's appearance or (as the case may be) its first appearance.

(3) As from (inclusive) the date on which the application is filed in court, the time limited for compliance with the statutory demand ceases to run, subject to any order of the court under Rule 6.005(6).

(4) The debtor's application shall be supported by an affidavit—

(a) specifying the date on which the statutory demand came into his hands, and

(b) stating the grounds on which he claims that it should be set aside.

The affidavit shall have exhibited to it a copy of the statutory demand.

Hearing of application to set aside

6.005

(1) On receipt of an application under Rule 6.004, the court may, if satisfied that no sufficient cause is shown for it, dismiss it without giving notice to the creditor. As from (inclusive) the date on which the application is dismissed, the time limited for compliance with the statutory demand runs again.

(2) If the application is not dismissed under paragraph (1), the court shall fix a venue for it to be heard, and shall give at least 7 days' notice of it to—

(a) the debtor or, if the debtor's application was made by a solicitor acting for him, to the solicitor,

(b) the creditor, and

(c) whoever is named in the statutory demand as the person with whom the debtor may enter into communication with reference to the demand (or, if more than one person is so named, the first of them).

(3) On the hearing of the application, the court shall consider the evidence then available to it, and may either summarily determine the application or adjourn it, giving such directions as it thinks appropriate.

(4) The court may grant the application if—

(a) the debtor appears to have a counterclaim, set-off or cross demand which equals or exceeds the amount of the debt or debts specified in the statutory demand; or

(b) the debt is disputed on grounds which appear to the court to be substantial; or

(c) it appears that the creditor holds some security in respect of the debt claimed by the demand, and either Rule 6.001(6) is not complied with in respect of it, or the court is satisfied that the value of the security equals or exceeds the full amount of the debt; or

(d) the court is satisfied, on other grounds, that the demand ought to be set aside.

(5) Where the creditor holds some security in respect of his debt, and Rule 6.001(6) is complied with in respect of it but the court is satisfied that the security is under-valued in the statutory demand, the creditor may be required to amend the demand accordingly (but without prejudice to his right to present a bankruptcy petition by reference to the original demand).

(6) If the court dismisses the application, it shall make an order authorising the creditor to present a bankruptcy petition either forthwith, or on or after a date specified in the order.

(7) A copy of the order shall be sent by the court forthwith to the creditor.

CHAPTER 2 — BANKRUPTCY PETITION (OTHER THAN DEBTOR'S)

Preliminary

6.006

(1) This Chapter relates to a creditor's petition, and the making of a bankruptcy order thereon; and in this Chapter “the debt” means, except where the context otherwise requires, the debt (or debts) in respect of which the petition is presented.

(2) Subject to paragraph (3), this Chapter also applies to a petition under Article 238(1)(c) (by supervisor of, or person bound by, voluntary arrangement) or Article 238(1)(d) (by Law Society of Northern Ireland as attorney of a solicitor), and the making of a bankruptcy order thereon, with any necessary modifications.

(3) Where to any Rule or paragraph there is given a number incorporating the letters “CP”, that signifies that the Rule or (as the case may be) the paragraph applies only to a creditor's petition.

Identification of debtor

6.007

(1) The petition shall state the following matters with respect to the debtor, so far as they are within the petitioner's knowledge—

(a) his name, place of residence and occupation (if any);

(b) the name or names in which he carries on business, if other than his true name, and whether, in the case of any business of a specified nature, he carries it on alone or with others;

(d) any name or names, other than his true name, in which he has carried on business at or after the time when the debt was incurred, and whether he has done so alone or with others;

(e) any address or addresses at which he has resided or carried on business at or after that time, and the nature of that business.

(2) The particulars of the debtor given under this Rule determine the full title of the proceedings.

(3) If to the petitioner's personal knowledge the debtor has used any name other than the one specified under paragraph (1)(a), that fact shall be stated in the petition.

Identification of debt

6.008-CP

(1) There shall be stated in the petition, with reference to every debt in respect of which it is presented—

(a) the amount of the debt, the consideration for it (or, if there is no consideration, the way in which it arises) and the fact that it is owed to the petitioner;

(b) when the debt was incurred or became due;

(i) any charge by way of interest not previously notified to the debtor as a liability of his, or

(ii) any other charge accruing from time to time,

the amount or rate of the charge (separately identified) and the grounds on which it is claimed to form part of the debt, but such amount or rate must, in the case of a petition based on a statutory demand, be limited to that claimed in that demand;

(d) either—

(i) that the debt is for a liquidated sum payable immediately, and the debtor appears to be unable to pay it, or

(ii) that the debt is for a liquidated sum payable at some certain, future time (that time to be specified), and the debtor appears to have no reasonable prospect of being able to pay it,

and, in either case (subject to Article 243) that the debt is unsecured.

(2) Where the debt is one for which, under Article 242, a statutory demand must have been served on the debtor—

(a) there shall be specified the date and manner of service of the statutory demand, and

(b) it shall be stated that, to the best of the creditor's knowledge and belief—

(i) the demand has been neither complied with nor set aside in accordance with the Rules, and

(ii) no application to set it aside is outstanding.

(3) If the case is within Article 242(1)(b) (debt arising under judgment; certificate of unenforceability granted) the court in which the judgment was obtained, the date of the judgment and the date the certificate of unenforceability was granted shall be specified, and it shall be stated that the debt in respect of which the petition is presented is the amount remaining due on foot of the judgment.

Procedure for presentation and filing

6.009

(1) The petition, verified by affidavit in accordance with Rule 6.011(1), shall be filed in court.

(2) No petition shall be filed unless there is produced with it the receipt for the deposit payable on presentation.

(3) The following copies of the petition shall also be delivered to the court with the petition—

(a) one for service on the debtor,

(b) one to be exhibited to the affidavit verifying that service, and

(c) if there is in force for the debtor a voluntary arrangement and the petitioner is not the supervisor of the arrangement, one copy for him.

(4) Each copy delivered to the court under paragraph (3) shall have applied to it the seal of the court, and shall be issued to the petitioner.

(5) The date and time of filing the petition shall be endorsed on the petition and on any copy issued under paragraph (3).

(6) The court shall fix a venue for hearing the petition, and this also shall be endorsed on the petition and on any copy so issued.

(7) Where a petition contains a request for the appointment of a person as trustee in accordance with Article 270(4) (appointment of former supervisor as trustee) the person whose appointment is sought shall, not less that 2 days before the day appointed for hearing the petition, file in court a report including particulars of—

(a) a date on which he gave written notification to creditors bound by the arrangement of the intention to seek his appointment as trustee, such date to be at least 10 days before the day on which the report under this paragraph is filed, and

(b) details of any response from creditors to that notice, including any objections to his appointment.

Proof of service of statutory demand

6.010-CP

(1) Where under Article 242 the petition must have been preceded by a statutory demand, there must be filed in court, with the petition, an affidavit or affidavits proving service of the demand.

(2) Every affidavit must have exhibited to it a copy of the demand as served.

(3) Subject to paragraph (4), if the demand has been served personally on the debtor, the affidavit must be made by the person who effected that service.

(4) If service of the demand (however effected) has been acknowledged in writing either by the debtor himself, or by some person stating himself in the acknowledgement to be authorised to accept service on the debtor's behalf, the affidavit must be made either by the creditor or by a person acting on his behalf, and the acknowledgement of service must be exhibited to the affidavit.

(5) If neither paragraph (3) nor paragraph (4) applies and subject to paragraph (8), the affidavit or affidavits must be made by a person or persons having direct personal knowledge of the means adopted for serving the statutory demand, and must—

(a) give particulars of the steps which have been taken with a view to serving the demand personally or refer to an accompanying affidavit containing such particulars, and

(b) state the means whereby (those steps having been ineffective) it was sought to bring the demand to the debtor's attention, and

(c) specify a date by which, to the best of the knowledge, information and belief of the person making the affidavit, the demand will have come to the debtor's attention.

(6) The steps of which particulars are given for the purposes of paragraph (5)(a) must be such as would have sufficed to justify an order for substituted service of a petition.

(7) If the affidavit specifies a date for the purposes of compliance with paragraph (5)(c), then unless the court otherwise orders, that date is deemed for the purposes of the Rules to have been the date on which the statutory demand was served on the debtor.

(8) Where the creditor has taken advantage of Rule 6.003(3) (newspaper advertisement), the affidavit must be made either by the creditor himself or by a person having direct personal knowledge of the circumstances; and there must be specified in the affidavit—

(a) the means of the creditor's knowledge or (as the case may be) belief required for the purposes of that Rule, and

(b) the date or dates on which, and the newspaper in which, the statutory demand was advertised under that Rule;

and there shall be exhibited to the affidavit a copy of any advertisement of the statutory demand.

(9) The court may decline to file the petition if not satisfied that the creditor has discharged the obligation imposed on him by Rule 6.003(2).

Verification of petition

6.011

(1) The petition shall be verified by an affidavit that the statements in the petition are true, or are true to the best of the deponent's knowledge, information and belief.

(2-CP) If the petition is in respect of debts to different creditors, the debts to each creditor must be separately verified.

(3) The petition shall be exhibited to the affidavit verifying it.

(4) The affidavit shall be made—

(a) by the petitioner (or if there are two or more petitioners, any one of them), or

(b) by some person such as a director, company secretary or similar company officer, or a solicitor, who has been concerned in the matters giving rise to the presentation of the petition, or

(c) by some responsible person who is duly authorised to make the affidavit and has the requisite knowledge of those matters.

(5) Where the maker of the affidavit is not the petitioner himself, or one of the petitioners, he must in the affidavit identify himself and state—

(a) the capacity in which, and the authority by which, he makes it, and

(b) the means of his knowledge of the matters sworn to in the affidavit.

(6) The affidavit is prima facie evidence of the truth of the statements in the petition to which it relates.

(7-CP) If the petition is based upon a statutory demand, and more than 4 months have elapsed between the service of the demand and the presentation of the petition, the affidavit must also state the reasons for the delay.

Notice and registration of petition

6.012

(1) When the petition is filed, the court shall forthwith—

(a) send notice of its presentation to the Enforcement of Judgments Office,

(b) register the petition in the Registry of Deeds in accordance with section 3A(1) of the Registration of Deeds Act (Northern Ireland) 1970 [^f00015], and

(2) The copy of the document required by section 3A(1) of the Registration of Deeds Act (Northern Ireland) 1970 to be certified by the High Court shall be certified by the Master.

(3) If at any time after the petition is filed it appears to the Master that the person against whom it is presented is the registered owner of any land, he shall give notice of the presentation of the petition to the Registrar of Titles in accordance with section 67A(1) of the Land Registration Act (Northern Ireland) 1970 [^f00016].

Service of petition

6.013

(1) Subject to paragraphs (2) and (3), the petition shall be served personally on the debtor by the petitioner or his solicitor, or by a person instructed by the petitioner or his solicitor for that purpose; and service shall be effected by delivering to him a sealed copy of the petition.

(2) If the court is satisfied by affidavit or other evidence on oath that prompt personal service cannot be effected because the debtor is keeping out of the way to avoid service of the petition or other legal process, or for any other cause, it may order substituted service of the petition to be effected in such manner as it thinks fit.

(3) Where an order for substituted service has been carried out, the petition is deemed duly served on the debtor.

(4) If to the petitioner's knowledge there is in force for the debtor a voluntary arrangement, and the petitioner is not himself the supervisor of the voluntary arrangement, a copy of the petition shall be sent by him to the supervisor.

Proof of service

6.014

(1) Service of the petition shall be proved by affidavit.

(2) The affidavit shall have exhibited to it—

(a) a sealed copy of the petition, and

(b) if substituted service has been ordered, a sealed copy of the order;

and it shall be filed in court immediately after service.

Death of debtor before service

6.015

If the debtor dies before service of the petition, the court may order service to be effected on his personal representatives, or on such other persons as it thinks fit.

Security for costs (Article 242(2) only)

6.016-CP

(1) This Rule applies where the debt in respect of which the petition is presented is for a liquidated sum payable at some future time, it being claimed in the petition that the debtor appears to have no reasonable prospect of being able to pay it.

(2) The petitioning creditor may, on the debtor's application, be ordered to give security for the debtor's costs.

(3) The nature and amount of the security to be ordered is in the court's discretion.

(4) If an order is made under this Rule, there shall be no hearing of the petition until the whole amount of the security has been given.

Hearing of petition

6.017

(1) Subject to paragraph (2), the petition shall not be heard until at least 14 days have elapsed since it was served on the debtor.

(2) The court may, on such terms as it thinks fit, hear the petition at an earlier date, if it appears that the debtor has absconded, or the court is satisfied that it is a proper case for an expedited hearing, or the debtor consents to a hearing within the 14 days.

(3) Any of the following may appear and be heard, that is to say, the petitioner, the debtor, the supervisor of any voluntary arrangement in force for the debtor and any creditor who has given notice under Rule 6.020.

Petition opposed by debtor

6.018

Where the debtor intends to oppose the petition, he shall not later than 7 days before the hearing date—

(a) file in court a notice specifying the grounds on which he will object to the making of a bankruptcy order, and

(b) send a copy of the notice to the petitioner or his solicitor.

Amendment of petition

6.019

With the leave of the court (given on such terms, if any, as the court thinks fit to impose), the petition may be amended at any time after presentation by the omission of any creditor or any debt.

Notice by creditors intending to appear

6.020

(1) Every creditor who intends to appear on the hearing of the petition shall give to the petitioner notice of his intention in accordance with this Rule.

(2) The notice shall specify—

(a) the name and address of the creditor giving it, and any telephone number and reference which may be required for communication with him or with any other person (to be also specified in the notice) authorised to speak or act on his behalf;

(b) whether his intention is to support or oppose the petition; and

(3) The notice shall be sent so as to reach the addressee not later than 16.00 hours on the business day before that which is appointed for the hearing (or, where the hearing has been adjourned, for the adjourned hearing).

(4) A creditor failing to comply with this Rule may appear on the hearing of the petition only with the leave of the court.

List of appearances

6.021

(1) The petitioner shall prepare for the court a list of the creditors (if any) who have given notice under Rule 6.020, specifying their names and addresses and (if known to him) their respective solicitors.

(2) Against the name of each creditor in the list it shall be stated whether his intention is to support the petition, or to oppose it.

(3) On the day appointed for the hearing of the petition, a copy of the list shall be handed to the court before the commencement of the hearing.

(4) If any leave is given under Rule 6.020(4), the petitioner shall add to the list the same particulars in respect of the person to whom leave has been given.

Decision on the hearing

6.022

(1) On the hearing of the petition, the court may make a bankruptcy order if satisfied that the statements in the petition are true and, where it is founded on a debt, that Article 245(1) has been complied with.

(2-CP) The court may accept as proof that the debt in respect of which a creditor's petition was presented has not been paid or secured or compounded for a certificate signed by the person representing the petitioning creditor at the hearing.

(3-CP) If the petition is presented in respect of a judgment debt, or a sum ordered by any court to be paid, the court may stay or dismiss the petition on the ground that an appeal is pending from the judgment or order, or that execution of the judgment has been stayed.

(4-CP) A petition preceded by a statutory demand shall not be dismissed on the ground only that the amount of the debt was over-stated in the demand, unless the debtor, within the time allowed for complying with the demand, gave notice to the creditor disputing the validity of the demand on that ground; but, in the absence of such notice, the debtor is deemed to have complied with the demand if he has, within the time allowed, paid the correct amount.

Non-appearance of petitioning creditor

6.023-CP

If the petitioning creditor fails to appear on the hearing of the petition, no subsequent petition against the same debtor, either alone or jointly with any other person, shall be presented by the same creditor in respect of the same debt, without the leave of the court.

Dismissal or withdrawal of petition or stay of proceedings

6.024

(1) If an order is made dismissing the petition or giving leave to withdraw it, the order shall include provision permitting vacation of the registration of the petition in the Registry of Deeds and, if notice of the presentation of the petition has been given to the Registrar of Titles, permitting the cancellation of any entry in the register of the said notice and the court shall send to the debtor 2 sealed copies of the order together with the certificate required by section 3(4) of the Registration of Deeds Act (Northern Ireland) 1970, as applied by section 3A(3) of that Act, signed by the Master.

(2) If the petition is dismissed or withdrawn, or if proceedings on it are stayed, the court shall send notice of the making of the order of dismissal or stay or of the withdrawal to the Enforcement of Judgments Office.

(3) Where, on the application of the debtor, the court is satisfied that, under Article 234(6), the petition is deemed to be dismissed by reason of an interim order ceasing to have effect, it shall—

(a) make an order permitting vacation of the registration of the petition in the Registry of Deeds and, if notice of the presentation of the petition has been given to the Registrar of Titles, permitting cancellation of any entry in the register of the said notice,

(b) send to the debtor 2 sealed copies of the order, and

Extension of time for hearing

6.025

(1) The petitioner may, if the petition has not been served, apply to the court to appoint another venue for the hearing.

(2) The application shall state the reasons why the petition has not been served.

(3) No costs occasioned by the application shall be allowed in the proceedings except by order of the court.

(4) If the court appoints another hearing date, the petitioner shall forthwith—

(a) produce to the court the petition and all copies for amendment of the venue, and

(b) notify any creditor who has given notice under Rule 6.020

Adjournment

6.026

(1) If the court adjourns the hearing of the petition, paragraph (2) applies.

(2) Unless the court otherwise directs, the petitioner shall forthwith send—

(a) to the debtor, and

(b) where any creditor has given notice under Rule 6.020 but was not present at the hearing, to him,

notice of the making of the order of adjournment. The notice shall state the venue for the adjourned hearing.

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