COVID-19: A note on the Temporary Insolvency Practice Direction 2020
The Temporary Insolvency Practice Direction 2020 (TIPD) has been introduced to provide workable solutions for court users during the current COVID-19 pandemic.
The intentions behind TIPD is to avoid, so far as possible, the need for parties to attend court in person and to take into account the likelihood of the Court needing to operate with limited staff and resources.
Overview
TIPD will apply to all insolvency proceedings throughout the Business and Property Courts subject to any variations outside London as directed by the relevant supervising judge.
It is effective from 6 April 2020 and will remain in force until 1 October 2020, unless amended or revoked by a further practice direction.
TIPD is supplemental to the Insolvency Practice Direction.
Remote hearings
TIPD confirms that unless otherwise ordered, all insolvency hearings will be conducted remotely by way of Skype or such other technology as the parties and the court agree in advance of the hearing.
Adjournment of pending applications and petitions
All applications, petitions and claim forms (save for petitions for winding-up and bankruptcy to be heard before an ICC Judge sitting in the Rolls Building in London) currently listed for hearing prior to 21 April 2020 are adjourned, to be re-listed according to criteria of urgency.
Temporary listing procedure for winding-up and bankruptcy petitions
The Court shall allocate time slots for groups of 2 or more petitions.
Each time slot shall be given a designated meeting link using Skype, or such other video conferencing technology as the relevant Court decides. The links shall be published on the daily cause list. The onus is on the parties to ensure they are able to utilise the link provided.
Any person who intends to appear on the hearing of the petition must deliver a notice of intention to appear on the petition in accordance with Rule 7.14, providing an email address or telephone number for the invitation.
Other insolvency hearings
For all insolvency hearings other than petition hearings, judges, clerks, and/or officials will propose to the parties:-
- a Skype (or other video conferencing technology) call at the allocated time by sending an invitation or otherwise making available a link; or
- a BT MeetMe (or other recordable telephone conferencing facility) to be arranged by the court or one or other of the parties at the court’s direction.
If the parties disagree with the court’s proposed method of hearing, they may make submissions in writing by email or CE-file (if available), copying in the other party.
Listing Urgent hearings before a High Court Judge or an Insolvency and Companies Court Judge
TIPD provides guidance on requesting the listing of an urgent hearing.
An email should be sent to the relevant judge’s clerk or the ICC Judges’ clerks at [email protected], setting out the nature of the application, the reason for its urgency, number of parties who will need to attend and confirmation that the hearing can be conducted by video or telephone hearing.
The clerk will then allocate the hearing to a judge and send an invitation to the video hearing or dial-in details to the parties and confirm information including whether the application should be issued via CE file and how any fee will be paid.
Only essential documents should be sent to the clerk or judge (by PDF or data room) along with estimated pre-reading times.
The judge will join the hearing by Skype or other means at the allotted time and following the hearing will make directions for the filing of a draft minute of order which will be sealed as soon as practicable.
Filing a notice of intention to appoint an administrator and a notice of appointment of an administrator
Notices of intention to appoint an administrator and notices of appointment of an administrators which are electronically filed (by either a company, a director or a qualifying floating charge holder) when the court is open between 10:00 am to 4:00 pm will be deemed filed on the date and at the time recorded in the filing submission email.
Notices filed by a company or director outside of normal court opening hours (between 10.00 am and 4.00 pm) will be deemed effective at 10.00 am the next day the court is open for business. This is important for the purposes of commencing the 10 day period in paragraph 28(2) of Schedule B1.
Electronic filing by a qualifying floating charge holder may not be used outside of the court opening hours and such notice may only be filed outside normal court opening hours by the procedure set out in Rules 3.20 to 3.22.
Statutory Declarations
TIPD also deals with the problems faced by court users since the COVID-19 lockdown including the problem of invalid statutory declarations.
It provides that a statutory declaration can be made by way of video conference providing the person is authorised to administer the oath, that person attests that the statutory declaration was made by way of video conference and the statutory declaration states that it was made in such manner.
Contact us
If you would like further information, or would like to discuss your particular circumstances and how Knights could help you and / or your business, please do get in contact with me via email at [email protected].
This article is for information purposes only and should not be relied upon in place of legal advice.