Practice Direction – Insolvency Proceedings 2018
On 25 April 2018 a new Insolvency Practice Direction came into force with immediate effect (PDIP 2018). Its purpose is to bring the insolvency practice directions into alignment with the procedural requirements under the Insolvency Rules 2016 and the new Business and Property Courts Practice Direction.
A key point coming out of the PDIP 2018 is the distribution of court business. Paragraph 3.1 of the PDIP 2018 provides that all petitions and applications, save where stated otherwise, should be listed for an initial hearing before a Judge appointed to the Insolvency and Companies Court in the High Court or a District Judge sitting in a District Registry (although note paragraph 3.4 of the PDIP 2018 which provides that certain applications such as injunctions must be made in the High Court and not the District Registry).
The exceptions to paragraph 3.1 are applications to be listed before a High Court Judge only, these are applications for committal and search and/or freezing orders.
The PDIP 2018 replaces all previous Practice Directions, Practice Statements, and Practice Notes relating to insolvency proceedings. However, it does not affect the Practice Direction for Directors Disqualification Proceedings.