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New Practice Direction on Insolvency Proceedings

The revised Practice Direction on Insolvency Proceedings (PIPD) updated the 2014 Practice Direction by making reference to the Insolvency Rules…

The revised Practice Direction on Insolvency Proceedings (PDIP) updated the 2014 Practice Direction by making reference to the Insolvency Rules 2016, taking into account recent case law and amendments in the CPR, identifying new arrangements for the distribution of insolvency matters across the different levels of the judiciary and clarifying the routes of appeal in insolvency cases.

The wave of changes brought in by the Insolvency (England and Wales) Rules 2016 (IR16) created a need for the existing insolvency procedure requirements to also be updated. The new PDIP came into force on 25 April 2018, replacing “all previous Practice Directions, Practice Statements and Practice Notes relating to insolvency proceedings” whilst running alongside the:

  • Practice Directions of the Civil Procedure Rules (CPR).
  • Practice Direction 51P – Pilot for Insolvency Express Trials.
  • Practice Direction: Directors Disqualification Proceedings.

Key changes

Distribution of court business

All applications must be brought in the High Court, with the exception of the following, which may now be brought in front of a District Judge in the County Court:

  • Hearings of applications to set aside statutory demands.
  • Unopposed creditors’ winding-up petitions.
  • Unopposed bankruptcy petitions.

Drawing up of orders

The PDIP 2018 introduces a new requirement whereby all applications must be accompanied by draft orders. This essentially means that, whereas in the past the court would mainly draw up all orders, now the parties are responsible for drawing up all orders, unless the court directs otherwise.

Remuneration of office holders

There are new provisions requiring a fee estimate to be exhibited to any remuneration application. The Court may consider the views of any parties considered to have an interest in the assets.

Corporate insolvency


The PDIP 2018 introduces two new provisions relating to administration applications and the Electronic Practice Direction 510 (PD 510):

  1. no out-of-court appointment of administrators can be effected outside court hours by using the Electronic Working online system;
  2. administration applications submitted using the Electronic Working scheme will have an issue date and time correlating to the date and time on which the filing fees are paid.

Winding-up petitions

Statutory demands must now follow as much as possible the HMCTS Form SD1. A petition will not be treated as having been presented until the Court fee and Official Receiver deposit has been paid. An additional requirement to give notice of the dismissal of a winding-up petition has been introduced (rule 7.23(1) of the IR 2016), although this can be dispensed with on request if the petition has not been previously gazetted, the company has gone into another insolvency process or the company agrees… READ FULL ARTICLE