PART 10 Court procedure and practice

CHAPTER 10 Costs

224 Requirement to assess costs by the detailed procedure
1 Where the costs of any person are payable as an expense out of the institution’s estate the amount payable must be decided by detailed assessment unless agreed between the administrator and the person entitled to payment.
2 Where the costs of any person are payable as an expense out of the relevant funds, the amount payable must be decided by detailed assessment unless agreed between a meeting of customers and the person entitled to payment.
3 In the absence of such agreement as is mentioned in paragraph (1) or (2), the administrator—
(a) may serve notice requiring the person entitled to payment to commence detailed assessment proceedings in accordance with CPR Part 47, and
(b) must serve such notice where the creditors’ committee resolves that the amount of the costs in either case must be decided by detailed assessment.
4 Detailed assessment proceedings must be commenced in the court.
5 Where the costs of any person employed by the administrator in the special administration are required to be decided by detailed assessment or fixed by order of the court, the administrator may make payments on account to such person in respect of those costs provided that person undertakes in writing—
(a) to repay as soon as is reasonably practicable any money which may, when detailed assessment is made, prove to have been overpaid, and
(b) to pay interest on any such sum as is mentioned in sub-paragraph (a) at the rate specified in section 17 of the Judgments Act 1838 on the date payment was made and for the period beginning with the date of payment and ending with the date of repayment.
6 In any proceedings before the court, the court may order costs to be decided by detailed assessment.
7 Unless otherwise directed or authorised, the costs of the administrator are to be allowed on the standard basis for which provision is made in—
(a) CPR rule 44.3 (basis of assessment), and
(b) CPR rule 44.4 (factors to be taken into account when deciding the amount of costs).
Rule 224 in force at 12.11.2021, see rule 2