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The Magistrates' Courts (Northern Ireland) Order 1981

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Changes over time for: Cross Heading: Debt proceedings

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Version Superseded: 31/12/2020

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The Magistrates' Courts (Northern Ireland) Order 1981, Cross Heading: Debt proceedings is up to date with all changes known to be in force on or before 14 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Debt proceedingsN.I.

Debt proceedingsN.I.

62.—(1) A court of summary jurisdiction may exercise jurisdiction in proceedings for the recovery of any liquidated sum due on foot of any debt, account, contract or covenant where—

(a)the amount or balance claimed does not exceed £100; and

(b)if the claim is for the balance due on foot of an account, the whole account does not exceed £250.

(2) Where any sum is declared under any enactment whether passed before or after the commencement of this Part to be a debt or civil debt recoverable summarily, that sum, whether it exceeds £100 or not, may be recovered in proceedings under this Article.

(3) A minor may proceed in his own name in a court of summary jurisdiction as if he were of full age for any sum, not exceeding £100, due to him for wages or for work or services.

(4) A cause of action shall not be divided into two or more causes of action for the purpose of bringing proceedings before a court of summary jurisdiction.

(5) Proceedings under this Article shall be commenced by the issue of a process.

Time within which debt proceedings may be commencedN.I.

63.—(1) Subject to [F1this Article and Article 63A], debt proceedings shall not be commenced after the expiration of six years from the time when the cause of action arose.

(2) Nothing in paragraph (1) shall affect a period of limitation prescribed by any enactment for proceedings to recover a sum which is declared by that or any other enactment to be a debt or civil debt recoverable summarily.

[F2Extension of time limit: mediationN.I.

63A.(1) Paragraph (2) applies where—

(a)there is mediation in relation to a relevant cross border dispute giving rise to debt proceedings; and

(b)the period of 6 years referred to in Article 63(1) (“the limitation period”) would, apart from this Article, expire—

(i)in the period of 8 weeks after the date on which the mediation ends;

(ii)on the date on which the mediation ends; or

(iii)after the date on which all of the parties to the dispute agree to participate in the mediation but before the date on which the mediation ends.

(2) Where this paragraph applies, the limitation period is extended so that it expires on the date falling 8 weeks after the date on which the mediation ends.

(3) For the purposes of paragraph (1) and (2), a mediation in relation to a relevant cross-border dispute ends on the date of the first of these to occur—

(a)all of the parties reach an agreement in resolution of the dispute;

(b)all of the parties agree to end the mediation;

(c)a party notifies all of the other parties of that party's withdrawal,

(d)a period of 14 days expires after a request made by one party to another party for confirmation of whether the other party has withdrawn and the other party does not respond in that period, or

(e)a period of 14 days expires after the date on which the mediator's tenure ends (by reason of death, resignation or otherwise) and a replacement mediator has not been appointed in that period.

(4) In this Article—

the Directive” means Directive 2008/52/EC of the European Parliament and of the Council of 21st May 2008 on certain aspects of mediation in civil and commercial matters;

“mediation” and “mediator” have the meanings given by Article 3 of the Directive; and

relevant cross-border dispute” means a cross-border dispute within the meaning given by Article 2 of the Directive.]

Abandonment of so much of claim as is in excess of jurisdictionN.I.

64.—(1) A plaintiff whose cause of action is for a liquidated sum the amount of which is beyond the jurisdiction of a court of summary jurisdiction may abandon the excess and proceed for the balance of the claim and in such case the plaintiff shall forfeit the excess and shall not be entitled to recover it by any other proceedings whatsoever,

(2) A defendant shall have the like right in respect of his set-off or counterclaim.

CounterclaimsN.I.

65.—(1) Where a counterclaim is beyond the jurisdiction of a court of summary jurisdiction, the court may try the claim and may, if it thinks fit and upon such terms as to security or otherwise as it thinks fit, stay execution until the counterclaim has been disposed of.

(2) Where a counterclaim or any part of it is admitted, the court of summary jurisdiction may direct the amount admitted to be set off pro tanto without prejudice to any proceedings to recover the balance.

Decree for recovery of sum claimed to be full dischargeN.I.

66.—(1) Where a claim is for the payment of the balance of an account, or for part of a sum alleged to be due and the remainder of it has been abandoned in order to bring the claim within the jurisdiction of a court of summary jurisdiction, a decree for recovery of the sum claimed or part of it or of dismissal shall, subject to the right of any party to appeal under Part XII, be a full discharge of all demands in respect of the account for the balance of which proceedings were bought or for the whole of the claim as the case may be.

(2) In this Article “claim” includes a set-off or counterclaim.

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