Application for directions by an administrator

AuthorMark Watson-Gandy
Pages173-182
Chapter 11


Application for Directions by an Administrator

OBJECTIVE

An administrator may apply for directions from the court as to fulfilling his duties,1for example as to the appropriate approach to the validity of a charge. The power of the court is limited by the words ‘for the purpose of fulfilling his duties’. Thus the court cannot go beyond the purposes for which the order is made.2

APPLICATION

The application is made by application notice on Form IAA returnable to the district judge or registrar. A copy of the application should be filed at court with one additional copy for each party to be served.3

The application should be made on notice to the parties interested in the decision.

COURT FEES

Where the application is made for determination by the court, a court fee of £155 is payable.4Where the application is made by consent, a court fee of £50 is payable.5

EVIDENCE

The administrator should file a witness statement in support. This should address:

ƒ that he makes this application as administrator; ƒ that he seeks the court’s directions;
ƒ the question he wants the court to answer;

1Paragraph 63 of Schedule B1 to the Insolvency Act 1986.

2Re Lune Metal Products Ltd (in administration) [2006] EWCA Civ 1720, [2007] BCC 217 (the power could not be invoked to allow the court to, say, permit a distribution to creditors).

3Rule 12.7 of the Insolvency (England and Wales) Rules 2016.

4Paragraph 3.5 of Schedule 1 to the Civil Proceedings Fees Order 2008.

5Paragraph 3.11 of Schedule 1 to the Civil Proceedings Fees Order 2008.

174 Corporate Insolvency Practice

ƒ why the question needs to be answered;
ƒ fully and frankly all material facts and circumstances upon which the issue arises;6

ƒ the opposing contentions on the question.

The witness statement should exhibit:

ƒ evidence of the administrator’s appointment;
ƒ any documents relevant to the issue;
ƒ any documents relevant to the facts upon which the issue arises.

SERVICE

The usual rule is that, subject to any other express provision, the application must be served at least 14 days before the date fixed for the hearing.7However, the court does have power, in cases of urgency, to hear an application immediately with or without notice to the other parties.8

Service may be effected personally9or by post in accordance with the rules on postal service under Part 6 of the CPR.10Service on a person may be effected by service on that person’s solicitor, if they are authorised to accept service on that person’s behalf.11

THE FIRST HEARING

The first hearing is before the registrar or district judge. Advocates are not expected to robe. The registrar may adjourn the case to the judge or give directions himself.

KEY STATUTORY PROVISIONS

Paragraph 63 of Schedule B1 to the Insolvency Act 1986

63 The administrator of a company may apply to the court for directions in connection with his functions.

6Re Nortel Networks UK Ltd [2014] EWHC 2614 (Ch) and [2016] EWHC 2769 (Ch).

7Rule 12.9(3) of the Insolvency (England and Wales) Rules 2016.

8Rule 12.10(1) of the Insolvency (England and Wales) Rules 2016.

9Rule 1.44 of the Insolvency (England and Wales) Rules 2016.

10Paragraph 1(2) of Schedule 4 to the Insolvency (England and Wales) Rules 2016.

11Rule 1.40 of the Insolvency (England and Wales) Rules 2016.

Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016

Information required to identify persons and proceedings etc.

1.6.—(1) Where the Act or these Rules require a document to identify, or to contain identification details in respect of, a person or proceedings, or to provide contact details for an...

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