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The Housing Administration (England and Wales) Rules 2018

Type Statutory-Instrument

Publication 2018-06-12

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(5) Where the result of a request to the creditors is to be made available for viewing and downloading on a website, the notice must comply with the requirements for use of a website to deliver documents set out in rule 7.39(2), (3) and (4) with any necessary modifications and rule 7.39(5)(a) applies to determine the time of delivery of the document.

(6) Where the court makes an order extending the housing administrator’s term of office, the housing administrator must as soon as reasonably practicable deliver a notice of the order together with the reason for seeking the extension given in the application to the court to—

(a) the creditors;

(b) the Secretary of State;

(d) the relevant registry.

(7) Where the housing administrator’s term of office has been extended with the consent of creditors, the housing administrator must as soon as reasonably practicable deliver a notice of the extension to the persons mentioned in paragraph (6), except where paragraph (4) applies.

(8) The notices which paragraph 78(5)(b) of Schedule B1 require to be delivered must also identify the proceedings.

Notice of automatic end of administration

3.39

(1) This rule applies where—

(a) the appointment of a housing administrator has ceased to have effect, and

(b) the housing administrator is not required by any other rule to give notice of that fact.

(2) The former housing administrator must, as soon as reasonably practicable, and in any event within five business days of the date on which the appointment has ceased, not including that date, deliver to the relevant registry, the Secretary of State and the Regulator of Social Housing, and file with the court a notice accompanied by a final progress report.

(3) The notice must be headed “Notice of automatic end of housing administration” and identify the registered provider immediately below the heading.

(4) The notice must contain—

(a) identification details for the proceedings;

(b) the former housing administrator’s name and address;

(d) the date of the appointment;

(e) the name of the person who made the housing administration application;

(f) a statement that the appointment has ceased to have effect;

(g) the date on which the appointment ceased to have effect; and

(h) a statement that a copy of the final progress report accompanies the notice.

(5) The notice must be authenticated by the housing administrator and dated.

(6) A copy of the notice and accompanying final progress report must be delivered as soon as reasonably practicable to—

(a) the Secretary of State;

(b) the Regulator of Social Housing;

(d) all other persons to whom notice of the housing administrator’s appointment was delivered.

(7) A former housing administrator who fails to comply with this rule is guilty of an offence and liable to a fine and, for continued contravention, to a daily default fine as set out in Schedule 1.

Application for an order ending housing administration

3.40

(1) An application to the court under paragraph 79 of Schedule B1 for an order ending a housing administration must be accompanied by—

(a) a progress report for the period since—

(i) the last progress report (if any), or

(ii) if there has been no previous progress report, the date on which the registered provider entered housing administration; and

(b) a statement indicating what the housing administrator thinks should be the next steps for the registered provider (if applicable).

(2) Where an application to the court is made—

(a) the applicant must, at least five days before the application is filed, deliver notice of the applicant’s intention to apply to court to all the creditors; and

(b) the application must be accompanied by—

(i) a statement that notice has been delivered to the creditors; and

(ii) copies of any response from creditors to that notice.

Notice of court order ending housing administration

3.41

Where the court makes an order ending the housing administration, the applicant must as soon as reasonably practicable deliver a copy of the order and of the final progress report to—

(a) the Secretary of State, unless the Secretary of State was the applicant;

(b) the Regulator of Social Housing, unless the Regulator of Social Housing was the applicant;

(d) the relevant registry;

(e) the relevant officers of the registered provider; and

(f) all other persons to whom notice of the housing administrator’s appointment was delivered.

Moving from housing administration to creditors’ voluntary winding up

3.42

(1) This rule applies where the housing administrator delivers to the relevant registry a notice under paragraph 83(3) of Schedule B1 of moving from housing administration to creditors’ voluntary winding up.

(2) The notice must contain—

(a) identification details for the proceedings;

(b) the name of the person who made the housing administration application; and

(3) The notice to the relevant registry must be accompanied by a copy of the housing administrator’s final progress report.

(4) A copy of the notice and the final progress report must be sent as soon as reasonably practicable after delivery of the notice to all those persons to whom notice of the housing administrator’s appointment was delivered in addition to the creditors (as required by paragraph 83(5)(b) of Schedule B1).

(5) The person who ceases to be housing administrator on the registration of the notice must inform the person who becomes liquidator of anything which happens after the date of the final progress report and before the registration of the notice which the housing administrator would have included in the final report had it happened before the date of the report.

(6) For the purposes of paragraph 83(7)(a) of Schedule B1, a person is nominated as liquidator in accordance with rule 3.8(4) or 3.11(1)(f)(iii) and that person’s appointment takes effect following registration under paragraph (1) of this rule—

(a) by virtue of the housing administrator’s proposals or revised proposals; or

(b) following a decision sought by the housing administrator under rule 3.28(2).

(7) Where the creditors nominate a different person, the nomination must, where applicable, include the declaration required by section 231 of the Act.

Moving from housing administration to dissolution

3.43

(1) This rule applies where the housing administrator delivers to the relevant registry a notice under paragraph 84(1) of Schedule B1 of moving from housing administration to dissolution.

(2) The notice must identify the proceedings.

(3) As soon as reasonably practicable after sending the notice, the housing administrator must deliver a copy of the notice to all persons to whom notice of the housing administrator’s appointment was delivered (in addition to the creditors mentioned in paragraph 84(5)(b)).

(4) A final progress report must accompany the notice to the relevant registry and also every other copy filed or otherwise delivered.

(5) Where a court makes an order under paragraph 84(7) of Schedule B1 it must, where the applicant is not the housing administrator, deliver a copy of the order to the housing administrator.

(6) The housing administrator must deliver a copy of the order to the relevant registry with the notice required by paragraph 84(8).

PART 4 — COURT PROCEDURE AND PRACTICE

CHAPTER 1 — General

Court rules and practice to apply

4.1

(1) The provisions of the CPR (including any related Practice Directions) apply for the purposes of housing administration with any necessary modifications, except so far as disapplied by or inconsistent with these Rules.

(2) Housing administration proceedings must be allocated to the multi-track, for which CPR Part 29 makes provision, and accordingly those provisions of the CPR which provide for directions questionnaires and track allocation do not apply.

(3) CPR Part 32 applies to a false statement in a document verified by a statement of truth made under these Rules as it applies to a false statement in a document verified by a statement of truth made under CPR Part 22.

Performance of functions by the Court

4.2

(1) Anything to be done under or by virtue of the Act or these Rules by, to or before the court may be done by, to or before a judge.

(2) The judge may authorise any act of a formal or administrative character which is not by statute that person’s responsibility to be carried out by the chief clerk or any other officer of the court acting on that person’s behalf, in accordance with directions given by the Lord Chancellor.

(3) The hearing of an application must be in open court unless the court directs otherwise.

CHAPTER 2 — Making applications to court

Preliminary

4.3

This Chapter applies to all applications to court made within housing administration proceedings except an application for a housing administration order made under Part 2.

Form and content of application

4.4

(1) Each application must be in writing and state—

(a) that the application is made in housing administration proceedings;

(b) the rule under which it is made;

(d) the name of the registered provider which is the subject of the housing administration proceedings to which the application relates;

(e) the court (and where applicable, the division or district registry of that court) in which the application is made;

(f) where the court has previously allocated a number to the housing administration proceedings within which the application is made, that number;

(g) the nature of the remedy or order applied for or the directions sought from the court;

(h) the names and addresses of the persons (if any) on whom it is intended to serve the application or that no person is intended to be served;

(i) where the Act or Rules require that notice of the application is to be delivered to specified persons, the names and addresses of all those persons (so far as known to the applicant); and

(j) the applicant’s address for service.

(2) The application must be authenticated by the applicant if they are acting in person or, when they are not so acting, by or on behalf of their solicitor.

Filing of application

4.5

(1) An application filed with the court in hard-copy form must be accompanied by one copy and a number of additional copies equal to the number of persons who are to be served with the application.

(2) A document may not be delivered to a court by electronic means unless this is expressly permitted by the CPR, a Practice Direction, or these Rules.

(3) A document delivered by electronic means is treated as delivered to the court at the time it is recorded by the court as having been received, or otherwise as the CPR, a Practice Direction or these Rules provide.

Fixing the venue

4.6

When an application is filed the court must fix a venue for it to be heard unless—

(a) it considers that it is not appropriate to do so;

(b) the rule under which the application is brought provides otherwise; or

Service or delivery of application

4.7

(1) The applicant must serve a sealed copy of the application, endorsed with the venue for the hearing, on the respondent named in the application unless the court directs or these Rules provide otherwise.

(2) The court may also give one or more of the following directions—

(a) that the application be served upon persons other than those specified by the relevant provision of the Act or these Rules;

(b) that service upon, or the delivery of a notice to any person may be dispensed with;

(c) that such persons be notified of the application and venue of the hearing in such other way as the court specifies; or

(d) such other directions as the court sees fit.

(3) A sealed copy of the application must be served, or notice of the application and venue must be delivered, at least 14 days before the date fixed for its hearing unless—

(a) the provision of the Act or these Rules under which the application is made makes different provision;

(b) the case is urgent and the court acts under rule 4.8 or;

Hearing in urgent case

4.8

(1) Where the case is urgent, the court may (without prejudice to its general power to extend or abridge time limits) hear the application immediately with or without notification to, or the attendance of, other parties.

(2) The application may be heard on terms providing for the filing or service of documents, notification, or the carrying out of other formalities as the court thinks just.

Directions

4.9

The court may at any time give such directions as it thinks just as to—

(a) service or notice of the application on or to any person;

(b) whether the application is to be served and generally the procedure on the application including whether a hearing is necessary;

(d) the manner in which any evidence is to be provided and in particular as to—

(i) the taking of evidence wholly or partly by witness statement or orally,

(ii) any report to be made by the housing administrator, and

(iii) the cross-examination of the maker of a witness statement or of a report.

Hearings and determination without notice

4.10

(1) Where the Act and these Rules do not require service of a sealed copy of the application on, or notice of it to be delivered to, any person, the court may—

(a) hear the application as soon as reasonably practicable;

(b) fix a venue for the application to be heard, in which case rule 4.7 applies to the extent that it is relevant;

(2) However nothing in the Act or these Rules is to be taken as prohibiting the applicant from giving notice.

Adjournment of the hearing of an application

4.11

(1) The court may adjourn the hearing of an application on such terms as it thinks just.

(2) The court may give directions as to the manner in which any evidence is to be provided at a resumed hearing and in particular as to—

(a) the taking of evidence wholly or partly by witness statement or orally;

(b) the cross-examination of the maker of a witness statement or of a report; or

Application under section 176A(5) to disapply section 176A

4.12

(1) An application under section 176A(5) of the Act must be accompanied by a witness statement of the housing administrator.

(2) The witness statement must state—

(a) that the application arises in housing administration proceedings;

(b) a summary of the financial position of the registered provider; and

(c) the information substantiating the housing administrator’s view that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits.

Notice of an application under section 176A(5)

4.13

An application under section 176A(5) may be made without the application being served upon, or notification to any other party.

Notice of an order under section 176A(5)

4.14

(1) Where the court makes an order under section 176A(5), the court must, as soon as reasonably practicable, deliver the sealed order to the housing administrator.

(2) The housing administrator must, as soon as reasonably practicable, deliver notice of the order to each creditor unless the court directs otherwise.

(3) The court may direct that the requirement in paragraph (2) is complied with if a notice is published by the housing administrator which states that the court has made an order disapplying the requirement to set aside the prescribed part.

(4) As soon as reasonably practicable the notice—

(a) must be gazetted; and

(b) may be advertised in such other manner as the housing administrator thinks fit.

(5) The housing administrator must deliver a copy of the order to the relevant registry as soon as reasonably practicable after the making of the order.

Contents of application to the court under section 236 of the Act

4.15

(1) An application to the court made under section 236 of the Act must state—

(a) the grounds on which it is made; and

(b) which one or more of the following orders is sought—

(i) for the respondent to appear before the court,

(ii) for the respondent to clarify any matter which is in dispute in the proceedings or to give additional information in relation to any such matter (if so Part 18 CPR applies to any such order),

(iii) for the respondent to submit witness statements (if so, particulars must be given of the matters to be included), or

(iv) for the respondent to produce books, papers or other records (if so, the items in question to be specified).

(2) An application may be made without notice to any other party.

(3) The court may, whatever the order sought in the application, make any order which it has power to make under section 236 of the Act.

Order for examination etc

4.16

(1) Where the court orders the respondent to appear before it, it must specify the venue for the appearance.

(2) The date must not be less than 14 days from the date of the order.

(3) If the respondent is ordered to file with the court a witness statement or a written account, the order must specify—

(a) the matters which are to be dealt with in it; and

(b) the time within which it is to be delivered.

(4) If the order is to produce documents or other records, the time and manner of compliance must be specified.

(5) The applicant must serve a copy of the order on the respondent as soon as reasonably practicable.

Procedure for examination

4.17

(1) The applicant may attend an examination of the respondent, in person, or be represented by an appropriately qualified legal representative, and may put such questions to the respondent as the court may allow.

(2) Unless the applicant objects, the following persons may attend the examination with the permission of the court and may put questions to the respondent (but only through the applicant)—

(a) any person who could have applied for an order under section 236 of the Act; and

(b) any creditor who has provided information on which the application was made under section 236 of the Act.

(3) If the respondent is ordered to clarify any matter or to give additional information, the court must direct the respondent as to the questions which the respondent is required to answer, and as to whether the respondent’s answers (if any) are to be made in a witness statement.

(4) The respondent may employ an appropriately qualified legal representative at the respondent’s own expense, who may—

(a) put to the respondent such questions as the court may allow for the purpose of enabling the respondent to explain or qualify any answers given by the respondent; and

(b) make representations on the respondent’s behalf.

(5) Such written record of the examination must be made as the court thinks proper and such record must be read either to or by the respondent and authenticated by the respondent at a venue fixed by the court.

(6) The record may, in any proceedings (whether under the Act or otherwise), be used as evidence against the respondent of any statement made by the respondent in the course of the respondent’s examination.

Record of examination

4.18

(1) Unless the court otherwise directs, the record of questions put to the respondent, the respondent’s answers and any witness statement or written account delivered to the court by the respondent in compliance with an order of the court under section 236 of the Act are not to be filed with the court.

(2) The documents listed in paragraph (3) may not be inspected without the permission of the court, except by—

(a) the applicant for an order under section 236 of the Act; or

(b) any person who could have applied for such an order in relation to the affairs of the registered provider.

(3) The documents are—

(a) the record of the respondent’s examination;

(b) copies of questions put to the respondent or proposed to be put to the respondent and answers to questions given by the respondent;

(d) any document on the court file that shows the grounds for the application for the order.

(4) The court may from time to time give directions as to the custody and inspection of any documents to which this rule applies, and as to the provision of copies of, or extracts from, such documents.

Costs of proceedings under section 236 of the Act

4.19

(1) Where the court has ordered an examination of a person under section 236 of the Act, and it appears to it that the examination was made necessary because information had been unjustifiably refused by the respondent, it may order that the respondent pay the costs of the examination.

(2) Where the court makes an order against a person under—

(a) section 237(1) (to deliver up property in any person’s possession which belongs to the registered provider’s estate); or

(b) section 237(2) (to pay any amount in discharge of a debt due to the registered provider);

the costs of the application for the order may be ordered by the court to be paid by the respondent.

(3) Subject to paragraphs (1) and (2), the applicant’s costs must, unless the court orders otherwise, be paid as an expense of the housing administration.

(4) A person summoned to attend for examination must be tendered a reasonable sum for travelling expenses incurred in connection with that person’s attendance but any other costs falling on that person are at the court’s discretion.

Further information and disclosure

4.20

(1) A party to housing administration proceedings may apply to the court for an order—

(a) that in accordance with CPR Part 18 (further information) another party—

(i) clarify a matter that is in dispute in the proceedings, or

(ii) give additional information in relation to such a matter; or

(b) for disclosure from any person in accordance with CPR Part 31 (disclosure and inspection of documents), save where Chapter 7 of Part 3 applies.

(2) An application under this rule may be made without notice to any other party.

Witness statements and reports

4.21

(1) Where the Act or these Rules require evidence as to a matter, such evidence may be given by witness statement unless—

(a) in a specific case a rule or the Act makes different provision; or

(b) the court otherwise directs.

(2) Unless either the provision of the Act or rule under which the application is made provides otherwise or the court directs otherwise—

(a) if the applicant intends to rely at the first hearing on evidence in a witness statement or report, the applicant must file the witness statement or report with the court and serve a copy of it on the respondent not less than 14 days before the date fixed for the hearing; and

(b) where the respondent intends to oppose the application and rely for that purpose on evidence contained in a witness statement or report, the respondent must file the witness statement or report with the court and serve a copy of it on the applicant not less than five business days before the date fixed for the hearing.

(3) The court may order a person who has made a witness statement or report to attend for cross-examination.

(4) Where a person who has been ordered to attend fails to do so the witness statement or report must not be used in evidence without the court’s permission.

Evidence provided by the housing administrator

4.22

(1) The housing administrator may file a report instead of a witness statement for the purpose of any application, unless the application involves other parties or the court otherwise directs.

(2) Where a report is filed instead of a witness statement the report must be treated, for the purpose of rule 4.21 and any hearing before the court, as if it were a witness statement.

CHAPTER 3 — Transfer of Proceedings

General power of transfer

4.23

(1) The High Court may order housing administration proceedings which are pending in that court to be transferred to a specified hearing centre.

(2) The county court may order housing administration proceedings which are pending in that court to be transferred either to the High Court or to another hearing centre.

(3) In any case where proceedings are transferred to a county court, the transfer must be to a court which has jurisdiction to wind up the registered provider which is the subject of those proceedings.

(4) The court may order a transfer of proceedings—

(a) of its own motion; or

(b) on the application of the housing administrator; or

Proceedings commenced in the wrong court

4.24

Where housing administration proceedings are commenced in a court which is, in relation to those proceedings, the wrong court or hearing centre, that court may order—

(a) the proceedings to be transferred to the court or hearing centre in which they ought to have been commenced;

(b) the proceedings to be continued in the court or hearing centre in which they have been commenced; or

Applications for transfer

4.25

(1) An application by the housing administrator for proceedings to be transferred must be accompanied by a report by the housing administrator.

(2) The report must set out the reasons for the transfer, and include a statement that the applicant for the housing administration order consents to the transfer, or that the applicant has been given at least 14 days’ notice of the housing administrator’s application.

(3) If the court is satisfied from the report that the proceedings can be conducted more conveniently in another court, it must order that the proceedings be transferred to that court or hearing centre.

Procedure following order for transfer

4.26

(1) Where a court makes an order for the transfer of proceedings, it must as soon as reasonably practicable deliver to the transferee court or hearing centre a sealed copy of the order, and the file of the proceedings.

(2) A transferee court or hearing centre which receives such an order and the file in housing administration proceedings must, as soon as reasonably practicable, deliver notice of the transfer to the transferor court or hearing centre.

CHAPTER 4 — Court file

Court file

4.27

(1) Where documents are filed with the court under the Act or these Rules, the court must open and maintain a court file and place those documents on the file.

(2) The following may inspect the court file, or obtain from the court a copy of the court file, or of any document in the court file—

(a) the housing administrator in the proceedings;

(b) the Secretary of State;

(d) a creditor who provides the court with a statement confirming that the person is a creditor of the registered provider;

(e) a relevant officer or a former relevant officer; and

(f) a member of the registered provider.

(3) The right to inspect and obtain copies may be exercised on a person’s behalf by someone authorised to do so by that person.

(4) Other persons may inspect the file or obtain copies, if the court gives permission.

(5) The right to a copy of a document is subject to payment of the fee chargeable under an order made under section 92 of the Courts Act 2003[^f00019].

(6) Inspection of the file, with permission if required, may be at any reasonable time.

(7) The court may direct that the file, a document (or part of it) or a copy of a document (or part of it) must not be made available under paragraphs (2) or (3) without the permission of the court.

(8) An application for a direction under paragraph (7) may be made by—

(a) the housing administrator; or

(b) any person appearing to the court to have an interest.

(9) The following applications may be made without notice to any other party, but the court may direct that notice must be delivered to any person who would be affected by its decision—

(a) an application for permission to inspect the file or obtain a copy of a document under paragraph (4); and

(b) an application for a direction under paragraph (7).

(10) If, for the purposes of powers conferred by the Act or these Rules, the Secretary of State or the housing administrator makes a request to inspect, or requests the transmission of, the court file of the housing administration proceedings, the court must comply with the request (unless the file is for the time being in use for the court’s own purposes).

Office copies of documents

4.28

(1) The court must provide an office copy of a document from the court file of housing administration proceedings to a person who has under these Rules the right to inspect the court file where that person has requested such a copy and paid the appropriate fee under rule 4.27(5).

(2) A person’s right under this rule may be exercised on that person’s behalf by someone authorised to do so by that person.

(3) An office copy must be in such form as the judge thinks appropriate, and must bear the court’s seal.

CHAPTER 5 — Costs

Application of Chapter and interpretation

4.29

(1) This Chapter applies to the costs of and in connection with housing administration proceedings.

(2) In this Chapter “costs” includes charges and expenses.

(3) CPR Parts 44[^f00020] and 47[^f00021] (which relate to costs) apply to such costs.

Requirement to assess costs by the detailed procedure

4.30

(1) Where the costs of any person are payable as an expense out of the insolvent estate, the amount payable must be decided by detailed assessment unless agreed between the housing administrator and the person entitled to payment.

(2) In the absence of agreement, the housing administrator may serve notice requiring the person entitled to payment to commence detailed assessment proceedings in accordance with CPR Part 47.

(3) Detailed assessment proceedings must be commenced in the court to which the housing administration proceedings are allocated.

(4) In any proceedings before the court, the court may order costs to be decided by detailed assessment.

Procedure where detailed assessment is required

4.31

(1) A person whose costs in housing administration proceedings are required to be decided by detailed assessment must, on being required in writing to do so by the housing administrator, commence detailed assessment proceedings in accordance with CPR Part 47.

(2) If that person does not commence such proceedings within 3 months of being required to do so under paragraph 4.30(2), or within such further time as the court, on application, may permit, the housing administrator may deal with the administration without regard to any claim for costs by that person, whose claim is forfeited by such failure to commence proceedings.

(3) Where in any such case such a claim for costs lies additionally against a housing administrator in their personal capacity, that claim is also forfeited by such failure to commence proceedings.

(4) Where costs have been incurred in housing administration proceedings in the High Court and those proceedings are subsequently transferred to the county court, all costs of those proceedings directed by the court or otherwise required to be assessed may nevertheless, on the application of the person who incurred the costs, be ordered to be decided by detailed assessment in the High Court.

Costs paid otherwise than out of the assets of the registered provider

4.32

Where the amount of costs is decided by detailed assessment under an order of the court directing that those costs are to be paid otherwise than out of the assets of the registered provider, the costs officer must note on the final costs certificate by whom, or the manner in which, the costs are to be paid.

Award of costs against the housing administrator

4.33

Without prejudice to any provision of the Act by virtue of which the housing administrator is not in any event to be liable for costs and expenses, where a housing administrator is made a party to any proceedings on the application of another party to the proceedings, the housing administrator is not to be personally liable for the costs unless the court otherwise directs.

Applications for costs

4.34

(1) This rule applies where a party to, or a person affected by, housing administration proceedings applies to the court for an order allowing their costs, or part of them, of or incidental to the proceedings, and that application is not made at that time of the proceedings.

(2) The applicant must serve a sealed copy of the application on the housing administrator.

(3) The housing administrator may appear on any such application.

(4) No costs of or incidental to the application are to be allowed to the applicant unless the court is satisfied that the application could not have been made at the time of the proceedings.

Costs and expenses of witnesses

4.35

(1) Except as directed by the court no allowance as a witness in any examination or other proceedings before the court may be made to a relevant officer of the registered provider to which the proceedings relate.

(2) A person making any application in housing administration proceedings is not to be regarded as a witness on the hearing of the application, but a costs officer may allow their expenses of travelling and subsistence.

Final costs certificate

4.36

(1) A final costs certificate of the costs officer is final and conclusive as to all matters which have not been objected to in the manner provided for under the rules of the court.

(2) Where it is demonstrated to the satisfaction of a costs officer that a final costs certificate has been lost or destroyed, the costs officer may issue a duplicate.

CHAPTER 6 — Enforcement procedures

Enforcement of court orders

4.37

(1) In any housing administration proceedings, orders of the court may be enforced in the same manner as a judgment to the same effect.

(2) Where an order in housing administration proceedings is made, or any process is issued, by the county court, the order or process may be enforced, executed and dealt with by any hearing centre, as if it had been made or issued for the enforcement of a judgment or order to the same effect made by that hearing centre.

(3) This applies whether or not the other hearing centre is one in which such insolvency proceedings may be commenced.

(4) Where a warrant for the arrest of a person is issued by the High Court, the warrant may be discharged by the county court where the person who is the subject of the warrant—

(a) has been brought before a hearing centre in which housing administration proceedings may be commenced; and

(b) has given to the county court a satisfactory undertaking to comply with the obligations that apply to that person under the Act or these Rules.

Orders enforcing compliance

4.38

(1) The court may, on application by the housing administrator, make such orders as it thinks necessary for the enforcement of obligations falling on any person in accordance with—

(a) paragraph 47 of Schedule B1; or

(b) section 235[^f00022] of the Act.

(2) An order of the court under this rule may provide that all the costs of and incidental to the application for it are to be borne by the person against whom the order is made.

Warrants under section 236

4.39

(1) When a person is arrested under a warrant issued under section 236(5), the arresting officer must as soon as reasonably practicable bring the arrested person before the court issuing the warrant in order that the arrested person may be examined.

(2) If the arrested person cannot immediately be brought up for examination, the officer must deliver that person into the custody of the governor of the prison named in the warrant (or where that prison is not able to accommodate the arrested person, the governor of such other prison with appropriate facilities which is able to accommodate the arrested person), who must keep the arrested person in custody and produce that person before the court as it may from time to time direct.

(3) After arresting the person named in the warrant, the officer must as soon as reasonably practicable report to the court the arrest or delivery into custody (as the case may be) and apply to the court to fix a venue for the arrested person’s examination.

(4) The court must appoint the earliest practicable time for the examination, and must—

(a) direct the governor of the prison to produce the arrested person for examination at the venue appointed; and

(b) as soon as reasonably practicable deliver notice of the venue to the housing administrator.

(5) Where any property in the arrested person’s possession is seized, the property must, in accordance with any directions of the court, be—

(a) delivered to whoever is specified in the warrant as authorised to receive it, or otherwise dealt with in accordance with the directions in the warrant; or

(b) kept by the officer after seizing it pending the receipt of written orders from the court as to its disposal.

(6) In this regulation references to property include books, papers and other documents and records.

(7) A warrant issued by the court under section 236 must be addressed to such officer of the High Court or of the county court as the warrant specifies, or to any constable.

(8) The person referred to in section 236(5) as the prescribed officer of the court is—

(a) in the case of the High Court, the tipstaff and the tipstaff’s assistants of the court; and

(b) in the case of the county court, a bailiff.

CHAPTER 7 — Appeals in housing administration

Application of Chapter

4.40

CPR Part 52[^f00023] applies to appeals under this Chapter as varied by any applicable Practice Direction.

Appeals and reviews of housing administration orders

4.41

(1) Every court which has jurisdiction in relation to housing administration proceedings may review, rescind or vary any order made by it in the exercise of that jurisdiction.

(2) Appeals made in the exercise of that jurisdiction lie as follows—

(a) where the decision appealed against is made by a district judge sitting in a county court hearing centre,

(i) to a High Court Judge sitting in a district registry; or

(ii) to an Insolvency and Companies Court Judge;

(b) to a High Court Judge where the decision appealed against is made by—

(i) a Circuit Judge sitting in the County Court;

(ii) a Master;

(iii) an Insolvency and Companies Court Judge, if that decision is made at first instance; or

(iv) a district judge sitting in a district registry;

(c) to the Civil Division of the Court of Appeal where the decision appealed against is made by an Insolvency and Companies Court Judge, if that decision is an appeal from a decision made by a District Judge; and

(d) to the Civil Division of the Court of Appeal where the decision is made by a High Court Judge.

(3) For the purposes of paragraph (2)(a), Schedule 10 of the Insolvency (England and Wales) Rules 2016 applies to identify the court in which an appeal is to be heard.

(4) Any application for the rescission of a winding-up order must be made within five business days after the date on which the order was made.

(5) In this rule—

“Circuit Judge sitting in the county court” means a judge sitting pursuant to section 5(1)(a) of the County Courts Act 1984[^f00024];

“Civil Division of the Court of Appeal” means the division of the Court of Appeal established by section 3(1) of the Senior Courts Act 1981[^f00025];

“county court” means the court established by section A1 of the County Courts Act 1984[^f00026];

“district judge” means a person appointed a district judge under section 6(1) of the County Courts Act 1984[^f00027];

“district judge sitting in a district registry” means a district judge sitting in an assigned district registry as a district judge of the High Court under section 100 of the Senior Courts Act 1981[^f00028];

“High Court Judge” means a judge listed in section 4(1) of the Senior Courts Act 1981[^f00029];

“Insolvency and Companies Court Judge” means a person appointed to the office of Insolvency and Companies Court Judge under section 89(1) of the Senior Courts Act 1981[^f00030];

“Master” means a person appointed to the office of Master, Chancery Division under section 89(1) of the Senior Courts Act 1981,

and for the purposes of each definition a person appointed to act as a deputy for any person holding that office is included.

Procedure on appeal

4.42

(1) An appeal against a decision at first instance may be brought only with the permission of the court which made the decision or of the court which has jurisdiction to hear the appeal.

(2) An appellant must file an appellant’s notice within 21 days after the date of the decision of the court that the appellant wishes to appeal.

CHAPTER 8 — Court orders, formal defects and shorthand writers

Court orders

4.43

Notwithstanding any requirement in these Rules as to the contents of a court order, the court may make such other order or in such form as the court thinks just.

Formal defects

4.44

No housing administration proceedings is to be invalidated by any formal defect or any irregularity unless the court before which objection is made considers that substantial injustice has been caused by the defect or irregularity and that the injustice cannot be remedied by any order of the court.

Shorthand writers

4.45

(1) The court may in writing nominate a person to be official shorthand writer to the court.

(2) The court may, at any time in the course of housing administration proceedings, appoint a shorthand writer to take down the evidence of a person examined under rule 4.17 or section 236 of the Act.

(3) Where the housing administrator applies to the court for an order appointing a shorthand writer, the housing administrator must name the person that the housing administrator proposes for the appointment.

(4) The remuneration of a shorthand writer appointed in housing administration proceedings must be paid by the party at whose instance the appointment was made, or out of the estate, or otherwise, as the court may direct.

(5) Any question arising as to the rates of remuneration payable under this rule must be determined by the court.

PART 5 — CLAIMS BY AND DISTRIBUTIONS TO CREDITORS

CHAPTER 1 — Interpretation

Interpretation

5.1

(1) In this Part, the following definitions apply—

“Debt” means (subject to the next paragraph) any of the following— any debt or liability to which the registered provider is subject at the relevant date; any debt or liability to which the registered provider may become subject after the relevant date by reason of any obligation incurred before that date; any interest provable as mentioned in rule 5.23; and

“dividend” includes a distribution;

“small debt” means a debt (being the total amount owed to a creditor) which does not exceed £1,000 (which amount is prescribed for the purposes of paragraph 13A of Schedule 8 to the Act[^f00031]);

“provable debt” has the meaning given in rule 5.2;

“relevant date” means the date on which the registered provider went into housing administration.

(2) Any liability in tort is a debt provable in the housing administration, if either—

(a) the cause of action has accrued at the relevant date; or

(b) all the elements necessary to establish the cause of action exist at that date except for actionable damage.

(3) It is immaterial whether the debt or liability is present or future, whether it is certain or contingent, or whether its amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion; and reference to owing a debt are to be read accordingly.

(4) Except in so far as the context otherwise requires, “liability” means (subject to paragraph (2)) a liability to pay money or money’s worth, including any liability under an enactment, a liability for breach of trust, any liability in contract, tort or bailment, and any liability arising out of an obligation to make restitution.

CHAPTER 2 — Creditors’ claims in housing administration

Provable debts

5.2

(1) All claims by creditors, except as provided in this rule, are provable as debts against the registered provider, whether they are present or future, certain or contingent, ascertained or sounding only in damages.

(2) An obligation arising under a confiscation order made under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002[^f00032] is not provable.

(3) The following claims are not provable until after all other claims of creditors have been paid in full with interest under rule 5.23—

(a) a claim arising by virtue of section 382(1)(a) of the Financial Services and Markets Act 2000[^f00033], unless it is also a claim arising by virtue of sub-paragraph (b) of that section (a person who has suffered loss etc.); and

(b) a claim which by virtue of the Act or any other enactment is a claim the payment of which is to be postponed.

(4) Nothing in this rule prejudices any enactment or rules of law under which a particular kind of debt is not provable, whether on grounds of public policy or otherwise.

Proving a debt

5.3

(1) A creditor wishing to recover a debt must submit a proof to the housing administrator unless this rule or an order of the court provides otherwise.

(2) A creditor is deemed to have proved for the purposes of determination and payment of a dividend but not otherwise where—

(a) the debt is a small debt;

(b) a notice has been delivered to the creditor of notice of intention to declare a dividend or make a distribution under rule 5.26 which complies with rule 5.28; and

(c) the creditor has not advised the housing administrator that the debt is incorrect or not owed in response to the notice.

Requirements for proof

5.4

(1) A proof must—

(a) be made out by, or under the direction of, the creditor and authenticated by the creditor or a person authorised on the creditor’s behalf;

(b) state the creditor’s name and address;

(d) state the total amount of the creditor’s claim (including any value added tax) as at the relevant date, less any payments made after that date in relation to the claim, any deduction under rule 5.20 and any adjustment by way of set-off in accordance with rule 5.24;

(e) state whether or not the claim includes any outstanding uncapitalised interest;

(f) contain particulars of how and when the debt was incurred;

(g) contain particulars of any security held, the date on which it was given and the value which the creditor puts on it;

(h) provide details of any reservation of title in relation to goods to which the debt refers;

(i) provide details of any document by reference to which the debt can be substantiated;

(j) be dated and authenticated; and

(k) state the name, postal address and authority of the person authenticating the proof (if someone other than the creditor).

(2) Where sub-paragraph (i) applies the document need not be delivered with the proof unless the housing administrator has requested it.

(3) The housing administrator may call for the creditor to produce any document or other evidence which the housing administrator considers is necessary to substantiate the whole or part of any claim.

Costs of proving

5.5

Unless the court otherwise orders—

(a) each creditor bears the cost of proving for that creditor’s own debt, including costs incurred in providing documents or evidence under rule 5.4(3); and

(b) costs incurred by the housing administrator in estimating the value of a debt under rule 5.14 are payable out of the assets as an expense of the housing administration.

Allowing inspection of proofs

5.6

The housing administrator must, so long as proofs delivered to the housing administrator are in the possession of the housing administrator, allow them to be inspected, at all reasonable times on any business day, by the following—

(a) a creditor who has delivered a proof (unless the proof has been wholly rejected for the purposes of dividend or otherwise or withdrawn);

(b) a member of the registered provider;

Admission and rejection of proofs for dividend

5.7

(1) The housing administrator may admit or reject a proof for dividend (in whole or in part).

(2) If the housing administrator rejects a proof in whole or in part, the housing administrator must deliver to the creditor a statement of the reasons for doing so, as soon as reasonably practicable.

Appeal against decision on proof

5.8

(1) If a creditor is dissatisfied with the housing administrator’s decision under rule 5.7 in relation to the creditor’s own proof (including a decision whether the debt is preferential), the creditor may apply to the court for the decision to be reversed or varied.

(2) The application must be made within 21 days of the creditor receiving the statement delivered under rule 5.7(2).

(3) A member or any other creditor may, if dissatisfied with the housing administrator’s decision admitting or rejecting the whole or any part of a proof or agreeing to revalue a creditor’s security under rule 5.15, apply to the court for the decision to be reversed or varied within 21 days of becoming aware of the housing administrator’s decision.

(4) The court must fix a venue for the application to be heard.

(5) The applicant must deliver notice of the date and venue to the creditor who delivered the proof in question (unless it is the applicant’s own proof) and the housing administrator.

(6) The housing administrator must, on receipt of the notice, file the relevant proof with the court, together (if appropriate) with a copy of the statement sent under rule 5.7(2).

(7) After the application has been heard and determined, a proof which was submitted by the creditor in hard copy form must be returned by the court to the housing administrator.

Housing administrator not liable for costs under rule 5.8

5.9

The housing administrator is not personally liable for costs incurred by any person in respect of an application under rule 5.8 unless the court otherwise orders.

Withdrawal or variation of proof

5.10

(1) A creditor may withdraw a proof at any time by delivering a written notice to the housing administrator.

(2) The amount claimed by a creditor’s proof may be varied at any time by agreement between the creditor and the housing administrator.

Exclusion of proof by the court

5.11

(1) The court may exclude a proof or reduce the amount claimed—

(a) on the housing administrator’s application, where the housing administrator thinks that the proof has been improperly admitted, or ought to be reduced; or

(b) on the application of a creditor or member, if the housing administrator declines to interfere in the matter.

(2) Where an application is made under paragraph (1), the court must fix a venue for the application to be heard.

(3) The applicant must deliver notice of the venue—

(a) in the case of an application by the housing administrator, to the creditor who submitted the proof; and

(b) in the case of an application by a creditor or member, to the housing administrator and to the creditor who made the proof (if not the applicant).

Debts of registered providers to rank equally

5.12

Debts to registered providers other than preferential debts rank equally between themselves and, after preferential debts, must be paid in full unless the assets are insufficient for meeting them, in which case they abate in equal proportions between themselves.

Division of unsold assets

5.13

(1) This rule applies to any property which, from its peculiar nature or other special circumstances, cannot be readily or advantageously sold.

(2) The housing administrator may with agreement of the creditors divide the property in its existing form among the registered provider’s creditors according to its estimated value.

Estimate of value of debt

5.14

(1) The housing administrator must estimate the value of a debt that does not have a certain value because it is subject to a contingency or for any other reason.

(2) The housing administrator may revise such an estimate by reference to a change of circumstances or to information becoming available to the housing administrator.

(3) The housing administrator must inform the creditor of the housing administrator’s estimate and any revision.

(4) Where the value of a debt is estimated under this rule, or by the court under section 168(3) or (5), the amount provable in the case of that debt is that of the estimate for the time being.

Secured creditor: value of security

5.15

(1) A secured creditor may, with the agreement of the housing administrator or the permission of the court, at any time alter the value which that creditor has put upon a security in a proof.

(2) Where a secured creditor has voted in respect of the unsecured balance of the debt—

(a) the secured creditor may re-value the security only with the agreement of the housing administrator or the permission of the court; and

(b) where the revaluation was by agreement, the housing administrator must deliver a notice of the revaluation to the creditors within five business days after the housing administrator’s agreement.

Secured creditor: surrender for non-disclosure

5.16

(1) If a secured creditor fails to disclose a security in a proof, the secured creditor must surrender that security for the general benefit of creditors, unless the court, on application by the secured creditor, relieves the secured creditor from the effect of this rule on the ground that the omission was inadvertent or the result of honest mistake.

(2) If the court grants that relief, it may require or allow the creditor’s proof to be amended, on such terms as may be just.

Secured creditor: redemption by housing administrator

5.17

(1) The housing administrator may at any time deliver a notice to a creditor whose debt is secured that the housing administrator proposes, at the expiration of 28 days from the date of the notice, to redeem the security at the value put upon it in the creditor’s proof.

(2) The creditor then has 21 days (or such longer period as the housing administrator may allow) in which to alter the value of the security in accordance with rule 5.15.

(3) If the creditor alters the value of the security with the agreement of the housing administrator or the court then the housing administrator may only redeem at the new value.

(4) If the housing administrator redeems the security the cost of transferring it is payable as an expense out of the estate.

(5) A creditor whose debt is secured may at any time deliver a notice to the housing administrator requiring the housing administrator to elect whether or not to redeem the security at the value then placed on it.

(6) The housing administrator then has three months in which to redeem the security or elect not to redeem the security.

Secured creditor: test of security’s value

5.18

(1) If the housing administrator is dissatisfied with the value which a secured creditor puts on a security in the creditor’s proof, the housing administrator may require any property comprised in the security to be offered for sale.

(2) The terms of sale is to be as agreed between the housing administrator and the secured creditor, or as the court may direct.

(3) If the sale is by auction, the housing administrator, on behalf of the registered provider or the estate, and the creditor may bid.

(4) This rule does not apply if the value of the security has been altered with the court’s permission.

Realisation or surrender of security by creditor

5.19

(1) If a creditor who has valued a security subsequently realises the security (whether or not at the instance of the housing administrator)—

(a) the net amount realised must be treated in all respects (including in relation to any valuation in a proof) as an amended valuation made by the creditor; and

(b) the creditor may prove for the balance of the creditor’s debt.

(2) A creditor who voluntarily surrenders a security may prove for the whole of the creditor’s debt as if it were unsecured.

Discounts

5.20

All trade and other discounts (except a discount for immediate or early settlement) which would have been available to the registered provider or the debtor but for the housing administration proceedings must be deducted from the claim.

Debts in foreign currency

5.21

(1) A proof for a debt incurred or payable in a foreign currency must state the amount of the debt in that currency.

(2) The housing administrator must convert all such debts into sterling at a single rate for each currency determined by the housing administrator by reference to the exchange rates prevailing on the relevant date.

(3) On the next occasion when the housing administrator communicates with the creditors the housing administrator must advise them of any rate so determined.

(4) A creditor who considers that the rate determined by the housing administrator is unreasonable may apply to the court.

(5) If on hearing the application the court finds that the rate is unreasonable it may itself determine the rate.

Payments of a periodical nature

5.22

(1) In the case of rent and other payments of a periodical nature, the creditor may prove for any amounts due and unpaid up to the relevant date.

(2) Where at that date any payment was accruing due, the creditor may prove for so much as would have been due at that date, if accruing from day to day.

Interest

5.23

(1) Where a debt proved in housing administration proceedings bears interest, that interest is provable as part of the debt except in so far as it is payable in respect of any period after the relevant date.

(2) In the circumstances set out in this rule, the creditor’s claim may include interest on the debt for periods before the relevant date although not previously reserved or agreed.

(3) If the debt is due by virtue of a written instrument and payable at a certain time, interest may be claimed for the period from that time to the relevant date.

(4) If the debt is due otherwise, interest may only be claimed if demand for payment of the debt was made in writing by or on behalf of the creditor and notice was delivered that interest would be payable from the date of the demand to the date of payment before the relevant date.

(5) Interest under paragraph (4) may only be claimed for the period from the date of the demand to the relevant date and, for the purposes of the Act and these Rules, must be charged at a rate not exceeding that mentioned in paragraph (6).

(6) The rate of interest to be claimed under paragraphs (3) and (4) is the rate specified in section 17 of the Judgments Act 1838[^f00034] on the relevant date.

(7) In a housing administration—

(a) any surplus remaining after payment of the debts proved must, before being applied for any other purpose, be applied in paying interest on those debts in respect of the periods during which they have been outstanding since the relevant date;

(b) all interest payable under sub-paragraph (a) ranks equally whether or not the debts on which it is payable rank equally; and

(c) the rate of interest payable under sub-paragraph (a) is whichever is the greater of the rate specified under paragraph (6) and the rate applicable to the debt apart from the housing administration.

Mutual dealings and set-off

5.24

(1) This rule applies where the housing administrator intends to make a distribution and has delivered a notice under rule 5.26.

(2) An account must be taken as at the date of the notice of what is due from the registered provider and a creditor to each other in respect of their mutual dealings and the sums due from the one must be set off against the sums due from the other.

(3) If there is a balance owed to the creditor then only that balance is provable in the housing administration.

(4) If there is a balance owed to the registered provider that must be paid to the housing administrator as part of the assets.

(5) However if all or part of the balance owed to the registered provider results from a contingent or prospective debt owed by the creditor then the balance (or that part of it which results from the contingent or prospective debt) must be paid in full (without being discounted under rule 5.41) if and when that debt becomes due and payable.

(6) In this rule—

“obligation” means an obligation however arising, whether by virtue of an agreement, rule of law or otherwise; and

“mutual dealings” means mutual credits, mutual debts or other mutual dealings between the registered provider and a creditor proving or claiming to prove for a debt in the housing administration but does not include any of the following— a debt arising out of an obligation incurred after the registered provider entered housing administration; a debt arising out of an obligation incurred at a time when the creditor had notice that an application for a housing administration order was pending; a debt which has been acquired by a creditor by assignment or otherwise, under an agreement between the creditor and another party where that agreement was entered into— after the registered provider entered housing administration, or at a time when the creditor had notice that an application for a housing administration order was pending.

(7) A sum must be treated as being due to or from the registered provider for the purposes of paragraph (2) whether—

(a) it is payable at present or in the future;

(b) the obligation by virtue of which it is payable is certain or contingent; or

(8) For the purposes of this rule—

(a) rule 5.14 applies to an obligation which, by reason of its being subject to a contingency or for any other reason, does not bear a certain value;

(b) rules 5.21 to 5.23 apply to sums due to the registered provider which—

(i) are payable in a currency other that sterling,

(ii) are of a periodical nature, or

(iii) bear interest; and

CHAPTER 3 — Distribution to creditors

Application of Chapter to particular class of creditors and to distributions

5.25

(1) This Chapter applies where the housing administrator makes, or proposes to make, a distribution to any class of creditors other than secured creditors.

(2) Where the distribution is to a particular class of creditors in a housing administration, a reference in this Chapter to creditors is a reference to that class of creditors only.

Individual notices to creditors etc of intended dividend or distribution

5.26

(1) Where the housing administrator intends to make a distribution to creditors or declare a dividend, the housing administrator must deliver a notice of that intention to all the creditors in the housing administration.

(2) Where the intended dividend is only for preferential creditors, the housing administrator is only required to deliver such a notice to the preferential creditors.

(3) Where the housing administrator intends to declare a dividend to unsecured creditors, the notice must also state the value of the prescribed part or that the court has made an order under section 176A(5) of the Act.

Contents of notice of intention to declare a dividend or make a distribution

5.27

A notice under 5.26 must contain the following—

(a) a statement that the housing administrator intends to make a distribution to creditors or declare a dividend (as the case may be) within the period of two months from the last date for proving;

(b) a statement whether the proposed distribution or dividend is interim or final;

(i) the same date for all creditors who prove, and

(ii) not less than 21 days from the date of the notice;

(d) a statement of the place to which proofs must be delivered; and

(e) the additional information required by rule 5.28 where the housing administrator intends to treat a small debt as proved for the purposes of paying a dividend.

Further contents of notice to creditors owed small debts etc.

5.28

(1) The housing administrator may treat a debt, which is a small debt according to the accounting records or the statement of affairs of the registered provider, as if it were proved for the purposes of paying a dividend.

(2) Where the housing administrator intends to treat such a debt as if it were proved, the notice delivered under rule 5.26 must—

(a) state the amount of the debt which the housing administrator believes to be owed to the creditor according to the accounting records or statement of affairs of the registered provider;

(b) state that the housing administrator will treat the debt which is stated in the notice, being for £1,000 or less, as proved for the purposes of paying a dividend unless the creditor advises the housing administrator that the amount of the debt is incorrect or that no debt is owed;

(c) require the creditor to notify the housing administrator by the last date for proving if the amount of the debt is incorrect or if no debt is owed; and

(d) inform the creditor that where the creditor advises the housing administrator that the amount of the debt is incorrect the creditor must also submit a proof to receive a dividend.

(3) The information required by paragraph (2)(a) may take the form of a list of small debts which the housing administration intends to treat as proved which includes the debt owed to the particular creditor upon whom the notice is being delivered.

Gazette notice of intended first dividend or distribution

5.29

(1) Subject to paragraphs (2) and (4) where the housing administrator intends to declare a first dividend or distribution, the housing administrator must gazette a notice containing—

(a) a statement that the housing administrator intends to declare a first dividend or distribution;

(b) the date by which and place to which proofs must be delivered.

(2) Where the intended dividend is only to preferential creditors the housing administrator need only gazette a notice if the housing administrator thinks fit.

(3) The housing administrator may in addition advertise such a notice in such other manner (if any) as the housing administrator thinks fit.

(4) Paragraph (1) does not apply where the housing administrator has previously, by a notice which has been gazetted, invited creditors to prove their debts.

Admission or rejection of proofs following last date for proving

5.30

(1) Unless the housing administrator has already dealt with them, the housing administrator must within 14 days of the last date for proving set out in the notice under rule 5.26—

(a) admit or reject (in whole or in part) proofs delivered to the housing administrator; or

(b) make such provision in relation to them as the housing administrator thinks fit.

(2) The housing administrator is not obliged to deal with a proof delivered after the last date for proving, but the housing administrator may do if the housing administrator thinks fit.

(3) In the declaration of a dividend a payment must not be made more than once by virtue of the same debt.

Postponement or cancellation of dividend

5.31

(1) The housing administrator may postpone or cancel the dividend in the period of two months from the last date for proving if an application is made to the court for the housing administrator’s decision on a proof to be reversed or varied, or for a proof to be excluded, or for a reduction of the amount claimed.

(2) The housing administrator may postpone a dividend if the housing administrator considers that, due to the nature of the affairs of the person to whom the proceedings relate, there is real complexity in admitting or rejecting proofs of claims submitted.

(3) Where the dividend is postponed or cancelled a new notice under rule 5.26 will be required if the dividend is paid subsequently.

Declaration of dividend

5.32

(1) The housing administrator must declare the dividend in the two month period referred to in rule 5.27(a) in accordance with the notice of intention to declare a dividend unless the housing administrator has had cause to postpone or cancel the dividend.

(2) The housing administrator must not declare a dividend so long as there is pending an application to the court to reverse or vary a decision of the housing administrator on a proof, or to exclude a proof or to reduce the amount claimed unless the court gives permission.

(3) If the court gives such permission, the housing administrator must make such provision in relation to the proof as the court directs.

Notice of declaration of a dividend

5.33

(1) Where the housing administrator declares a dividend, the housing administrator must deliver notice of that fact to all creditors who have proved for their debts (subject to paragraph (4)).

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