The Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021

CHAPTER 10 E+W Costs

Application of Chapter 10 E+W

223.—(1) This Chapter applies in relation to costs in connection with the special administration.

(2) In this Chapter, a reference to costs includes charges and expenses.

Commencement Information

I1 Rule 223 in force at 12.11.2021, see rule 2

Requirement to assess costs by the detailed procedure E+W

224.—(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).

Commencement Information

I2 Rule 224 in force at 12.11.2021, see rule 2

Procedure where detailed assessment is required E+W

225.—(1) Before making a detailed assessment of the costs of any person employed in the special administration by the administrator, the costs officer must require a certificate of employment, which must be endorsed on the bill and authenticated by the administrator.

(2) The certificate must include—

(a) the name and address of the person employed,

(b) details of the functions to be carried out under the employment, and

(c) a note of any special terms of remuneration which have been agreed.

(3) Every person whose costs in the special administration are required to be decided by detailed assessment must, on being required in writing to do so by the administrator, commence detailed assessment proceedings in accordance with CPR Part 47.

(4) If the person whose costs in the special administration are required to be decided by detailed assessment does not commence detailed assessment proceedings within three months of the requirement under paragraph (3), or within such further time as the court, on application, may permit—

(a) the administrator may deal with the institution’s estate (or the asset pool, as applicable) without regard to any claim by that person, and

(b) that person’s claim is forfeited by such failure to commence proceedings.

(5) Where in any such case such a claim lies additionally against the administrator in the administrator’s personal capacity, that claim is also forfeited by such failure to commence proceedings.

Commencement Information

I3 Rule 225 in force at 12.11.2021, see rule 2

Costs of officers charged with execution of writs or other process E+W

226.—(1) This rule applies where an enforcement officer, or other officer charged with execution of the writ or other person—

(a) is required under section 184(2)(1) of the IA 1986 to deliver up goods or money, or

(b) has under section 184(3) of the IA 1986 deducted costs from the proceeds of an execution or money paid to that officer or that person (as the case may be).

(2) The administrator may require in writing that the amount of the enforcement officer’s or other officer’s bill of costs be decided by detailed assessment and where such a requirement is made, rule 225(4) applies.

(3) Where, in the case of a deduction of the kind mentioned in paragraph (1)(b), any amount deducted is disallowed at the conclusion of the detailed assessment proceedings, the enforcement officer must as soon as is reasonably practicable pay a sum equal to that disallowed to the administrator for the benefit of the institution’s estate.

Commencement Information

I4 Rule 226 in force at 12.11.2021, see rule 2

Costs paid otherwise than out of the institution’s estate E+W

227.  Where the amount of costs is decided by detailed assessment under an order of the court directing that those costs are to be paid otherwise than out of the institution’s estate or out of the asset pool, the costs officer must note on the final costs certificate by whom, or the manner in which, the costs are to be paid.

Commencement Information

I5 Rule 227 in force at 12.11.2021, see rule 2

Award of costs against the administrator E+W

228.  Without prejudice to any provision of the Regulations or these Rules by virtue of which the administrator is not in any event to be liable for costs and expenses, where the administrator is made a party to any proceedings on the application of another party to the proceedings, the administrator is not to be personally liable for the costs unless the court otherwise directs.

Commencement Information

I6 Rule 228 in force at 12.11.2021, see rule 2

Applications for costs E+W

229.—(1) This rule applies where a party to, or person affected by, any proceedings in the special administration applies to the court for an order allowing their costs, or part of them, incidental to the proceedings, and that application is not made at the time of the proceedings.

(2) The person concerned must serve a sealed copy of the application on the administrator.

(3) The administrator may appear on an application.

(4) No costs of or incidental to the application are to be allowed to the applicant unless the court is satisfied that the application could not have been made at the time of the proceedings.

(5) The court must specify in the order whether such costs are to be paid out of the institution’s estate or out of the asset pool.

Commencement Information

I7 Rule 229 in force at 12.11.2021, see rule 2

Costs and expenses of witnesses E+W

230.  Except as directed by the court, no allowance as a witness in any examination or other proceedings before the court is to be made to an officer of the institution to which the proceedings relate.

Commencement Information

I8 Rule 230 in force at 12.11.2021, see rule 2

Final costs certificate E+W

231.—(1) A final costs certificate of the costs officer is final and conclusive as to all matters which have not been objected to in the manner provided for under the rules of the court.

(2) Where it is proved to the satisfaction of a costs officer that a final costs certificate has been lost or destroyed, the costs officer may issue a duplicate.

Commencement Information

I9 Rule 231 in force at 12.11.2021, see rule 2

(1)

Section 184 was amended by Courts Act 2003 (c. 39).