The Civil Procedure Rules 1998

[F1 SECTION 1—CHARGING ORDERS E+W

Textual Amendments

F1 Pt. 73 inserted (25.3.2002) by The Civil Procedure (Amendment No. 4) Rules 2001 (S.I. 2001/2792), rule 1(c), Sch. 4 (with savings in rule 24 and S.I. 2001/4015, rule 43(2))

Scope of this Section E+W

73.2   This Section applies to an application by a judgment creditor for a charging order under—

(a) section 1 of the 1979 Act; or

(b) regulation 50 of the 1992 Regulations.

Application for charging order E+W

73.3— (1) An application for a charging order may be made without notice.

(2) An application for a charging order must be issued in the court [F2 or County Court hearing centre] which made the judgment or order which it is sought to enforce, unless—

(a) the proceedings have since been transferred to a different court, in which case the application must be issued in that court;

(b) the application is made under the 1992 Regulations, in which [F3 event] it must be issued in the [F4 County Court] for the district in which the relevant dwelling (as defined in regulation 50(3)(b) of those Regulations) is situated;

(c) the application is for a charging order over an interest in a fund in court, in which [F5 event] it must be issued in the court in which the claim relating to that fund is or was proceeding; F6 ...

(d) the application is to enforce a judgment or order of the High Court and it is required by section 1(2) of the 1979 Act to be made to [F7 the County Court] [F8 ; or]

[F9 (e) the application is to enforce a judgment made in [F10 the County Court Money Claims Centre], in which event the application must be issued in accordance with section 2 of Practice Direction 70.]

(3) Subject to paragraph (2), a judgment creditor may apply for a single charging order in respect of more than one judgment or order against the same debtor.

(4) The application notice must—

(a) (i) be in the form; and

(ii) contain the information,

required by [F11 Practice Direction 73]; and

(b) be verified by a statement of truth.

Textual Amendments

F2 Words in rule 73.3(2) inserted (22.4.2014) by The Civil Procedure (Amendment) Rules 2014 (S.I. 2014/407), rules 2(1), 33(a)(i) (with rule 41(2)-(5)); S.I. 2014/954, art. 2(a)

F3 Word in rule 73.3(2)(b) substituted (19.3.2011) by The Civil Procedure (Amendment) Rules 2012 (S.I. 2012/505), rules 1, 5(a)

F4 Words in Rules substituted (22.4.2014) by The Civil Procedure (Amendment) Rules 2014 (S.I. 2014/407), rules 2(1), 4(a)(ii); S.I. 2014/954, art. 2(a)

F5 Word in rule 73.3(2)(c) substituted (19.3.2011) by The Civil Procedure (Amendment) Rules 2012 (S.I. 2012/505), rules 1, 5(b)(i)

F6 Word in rule 73.3(2)(c) omitted (19.3.2011) by The Civil Procedure (Amendment) Rules 2012 (S.I. 2012/505), rules 1, 5(b)(ii)

F7 Words in Rules substituted (22.4.2014) by The Civil Procedure (Amendment) Rules 2014 (S.I. 2014/407), rules 2(1), 4(a)(i); S.I. 2014/954, art. 2(a)

F8 Word in rule 73.3(2)(d) substituted (19.3.2011) by The Civil Procedure (Amendment) Rules 2012 (S.I. 2012/505), rules 1, 5(c)

F9 Rule 73.3(2)(e) inserted (19.3.2011) by The Civil Procedure (Amendment) Rules 2012 (S.I. 2012/505), rules 1, 5(d)

F10 Words in rule 73.3(2)(e) substituted (22.4.2014) by The Civil Procedure (Amendment) Rules 2014 (S.I. 2014/407), rules 2(1), 33(a)(ii) (with rule 41(2)-(5)); S.I. 2014/954, art. 2(a)

F11 Words in rule 73.3(4)(a) substituted (6.4.2010) by The Civil Procedure (Amendment No.2) Rules 2009 (S.I. 2009/3390), rules 1(2), 47(a)(i)

Interim charging order E+W

73.4— (1) An application for a charging order will initially be dealt with by a judge without a hearing.

(2) The judge may make an order (an “interim charging order”)—

(a) imposing a charge over the judgment debtor’s interest in the asset to which the application relates; and

(b) fixing a hearing to consider whether to make a final charging order as provided by rule 73.8(2)(a).

Service of interim order E+W

73.5— (1) Copies of the interim charging order, the application notice and any documents filed in support of it must, not less than 21 days before the hearing, be served on the following persons—

(a) the judgment debtor;

(b) such other creditors as the court directs;

(c) if the order relates to an interest under a trust, on such of the trustees as the court directs;

(d) if the interest charged is in securities other than securities held in court, then—

(i) in the case of stock for which the Bank of England keeps the register, the Bank of England;

(ii) in the case of government stock to which (i) does not apply, the keeper of the register;

(iii) in the case of stock of any body incorporated within England and Wales, that body;

(iv) in the case of stock of any body incorporated outside England and Wales or of any state or territory outside the United Kingdom, which is registered in a register kept in England and Wales, the keeper of that register;

(v) in the case of units of any unit trust in respect of which a register of the unit holders is kept in England and Wales, the keeper of that register; and

(e) if the interest charged is in funds in court, the Accountant General at the Court Funds Office.

(2) If the judgment creditor serves the order, he must either—

(a) file a certificate of service not less than 2 days before the hearing; or

(b) produce a certificate of service at the hearing.

Effect of interim order in relation to securities E+W

73.6— (1) If a judgment debtor disposes of his interest in any securities, while they are subject to an interim charging order which has been served on him, that disposition shall not, so long as that order remains in force, be valid as against the judgment creditor.

(2) A person served under rule 73.5(1)(d) with an interim charging order relating to securities must not, unless the court gives permission—

(a) permit any transfer of any of the securities; or

(b) pay any dividend, interest or redemption payment relating to them.

(3) If a person acts in breach of paragraph (2), he will be liable to pay to the judgment creditor—

(a) the value of the securities transferred or the amount of the payment made (as the case may be); or

(b) if less, the amount necessary to satisfy the debt in relation to which the interim charging order was made.

Effect of interim order in relation to funds in court E+W

73.7   If a judgment debtor disposes of his interest in funds in court while they are subject to an interim charging order which has been served on him and on the Accountant General in accordance with rule 73.5(1), that disposition shall not, so long as that order remains in force, be valid as against the judgment creditor.

Further consideration of the application E+W

73.8— (1) If any person objects to the court making a final charging order, he must—

(a) file; and

(b) serve on the applicant;

written evidence stating the grounds of his objections, not less than 7 days before the hearing.

(2) At the hearing the court may—

(a) make a final charging order confirming that the charge imposed by the interim charging order shall continue, with or without modification;

(b) discharge the interim charging order and dismiss the application;

(c) decide any issues in dispute between the parties, or between any of the parties and any other person who objects to the court making a final charging order; or

(d) direct a trial of any such issues, and if necessary give directions.

(3) If the court makes a final charging order which charges securities other than securities held in court, the order will include a stop notice unless the court otherwise orders.

(Section III of this Part contains provisions about stop notices.)

(4) Any order made at the hearing must be served on all the persons on whom the interim charging order was required to be served.

Discharge or variation of order E+W

73.9— (1) Any application to discharge or vary a charging order must be made to the court which made the charging order.

(Section 3(5) of the 1979 Act and regulation 51(4) of the 1992 Regulations provide that the court may at any time, on the application of the debtor, or of any person interested in any property to which the order relates, or (where the 1992 Regulations apply) of the authority, make an order discharging or varying the charging order.)

(2) The court may direct that—

(a) any interested person should be joined as a party to such an application; or

(b) the application should be served on any such person.

(3) An order discharging or varying a charging order must be served on all the persons on whom the charging order was required to be served.

Enforcement of charging order by sale E+W

73.10— (1) Subject to the provisions of any enactment, the court may, upon a claim by a person who has obtained a charging order over an interest in property, order the sale of the property to enforce the charging order.

(2) A claim for an order for sale under this rule should be made to the court which made the charging order, unless that court does not have jurisdiction to make an order for sale.

(A claim under this rule is a proceeding for the enforcement of a charge, and section 23(c) of the County Courts Act 1984 provides the extent of the [F12 County Court’s] jurisdiction to hear and determine such proceedings.)

(3) The claimant must use the Part 8 procedure.

(4) A copy of the charging order must be filed with the claim form.

(5) The claimant’s written evidence must include the information required by [F13 Practice Direction 73].]

Textual Amendments

F12 Words in rule 73.10 substituted (22.4.2014) by The Civil Procedure (Amendment) Rules 2014 (S.I. 2014/407), rules 2(1), 33(b) (with rule 41(2)-(5)); S.I. 2014/954, art. 2(a)

F13 Words in rule 73.10(5) substituted (6.4.2010) by The Civil Procedure (Amendment No.2) Rules 2009 (S.I. 2009/3390), rules 1(2), 47(a)(i)