PRACTICE DIRECTION 73 – CHARGING ORDERS, STOP ORDERS AND STOP NOTICES
This Practice Direction supplements Part 73
|SECTION I – CHARGING ORDERS|
|Application notice – rule 73.3||Para. 1.1|
|High Court and County Court jurisdiction||Para. 2.|
|Transfer following receipt of objections to an application for a charging order||Para. 3.|
|Discharge or variation of order - rule 73.10B
|Enforcement of charging orders by sale – rule 73.10C||Para. 4.1|
|Charging orders made against partnership property
|SECTION II – STOP NOTICES|
|SECTION III – APPLICATIONS FOR ORDERS MADE UNDER SECTION 23 OF THE PARTNERSHIP ACT 1890|
SECTION I – CHARGING ORDERS
Application notice – rule 73.3
1.1 An application for a charging order must be made by filing an application notice in Practice Form N379 if the application relates to land, or N380 if the application relates to securities.
1.2 The application notice must contain the following information –
(1) the name and address of the judgment debtor;
(2) details of the judgment or order sought to be enforced;
(3) the amount of money remaining due under the judgment or order;
(4) if the judgment debt is payable by instalments—
(a) whether the order was made on or after 1 October 2012; and
(b) the amount of any instalments which have fallen due and remain unpaid;
(5) if the judgment creditor knows of the existence of any other creditors of the judgment debtor, their names and (if known) their addresses;
(6) identification of the asset or assets which it is intended to charge including, where applicable, the title number under which any land upon which it is sought to impose a charge is registered;
(7) details of the judgment debtor's interest in the asset; and
(8) the names and addresses of the persons on whom an interim charging order must be served under rule 73.7.
1.3 A judgment creditor may apply in a single application notice for charging orders over more than one asset, but if the court makes interim charging orders over more than one asset, it will draw up a separate order relating to each asset.
1.4 Where, under rule 73.3(2), an application to the County Court is to be made to the County Court Money Claims Centre, the address is:
County Court Money Claims Centre
PO Box 527
High Court and County Court jurisdiction
2 The jurisdiction of the High Court, Family Court and the County Court to make charging orders is set out in section 1(2) of the 1979 Act.
Transfer following receipt of objections to an application for a charging order
3. Where the application is made to the County Court Money Claims Centre the court must, (and in any other case the court may) on receipt of written evidence from any person who wishes to oppose an application for a charging order, transfer the application to the judgment debtor’s home court.
Discharge or variation of order – rule 73.10B
3A. 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 judgment 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.
Enforcement of charging orders by sale – rule 73.10C
4.1 The County Court has jurisdiction to determine a claim under rule 73.10C for the enforcement of a charging order if the amount owing under the charge does not exceed the County Court limit.
4.1A A claim under rule 73.10C is a proceeding for the enforcement of a charge, and section 23(c) of the County Courts Act 1984 provides the extent of the County Court’s jurisdiction to hear and determine such proceedings.
4.2 A claim in the High Court for an order for sale of land to enforce a charging order must be started in Chancery Chambers at the Royal Courts of Justice, or a Chancery district registry.
(There are Chancery district registries at Birmingham, Bristol, Caernarfon, Cardiff, Leeds, Liverpool, Manchester, Mold, Newcastle upon Tyne and Preston.)
4.3 The written evidence in support of a claim under rule 73.10C must –
(1) identify the charging order and the property sought to be sold;
(2) state the amount in respect of which the charge was imposed and the amount due at the date of issue of the claim;
(3) verify, so far as known, the debtor's title to the property charged;
(4) state, so far as the claimant is able to identify –
(a) the names and addresses of any other creditors who have a prior charge or other security over the property; and
(b) the amount owed to each such creditor; and
(5) give an estimate of the price which would be obtained on sale of the property;
(6) if the claim relates to land, give details of every person who to the best of the claimant's knowledge is in possession of the property; and
(7) if the claim relates to residential property –
(a) state whether –
(i) a land charge of Class F; or
(ii) a notice under section 31(10) of the Family Law Act 1996, or under any provision of an Act which preceded that section,
has been registered; and
4.4 The claimant must take all reasonable steps to obtain the information required by paragraph 4.3(4) before issuing the claim.
4.5 Sample forms of orders for sale are set out in Appendix A to this practice direction for guidance. These are not prescribed forms of order and they may be adapted or varied by the court to meet the requirements of individual cases.
Charging orders made against partnership property
4A.1 A charging order or interim charging order may be made against any property, within the jurisdiction, belonging to a judgment debtor that is a partnership.
4A.2 For the purposes of rule 73.7(7)(a) (service of the interim order), the specified documents must be served on –
(1) a member of the partnership within the jurisdiction;
(2) a person authorised by a partner; or
(3) some other person having the control or management of the partnership business.
4A.3 Where an order requires a partnership to appear before the court, it will be sufficient for a partner to appear before the court.
SECTION II – STOP NOTICES
SECTION III – APPLICATIONS FOR ORDERS MADE UNDER SECTION 23 OF THE PARTNERSHIP ACT 1890
6.1 This paragraph relates to orders made under section 23 of the Partnership Act 1890 (‘Section 23’).
6.2 The following applications must be made in accordance with Part 23 –
(1) an application for an order under Section 23 of the 1890 Act made by a judgment creditor of a partner;
(2) an application for any order by a partner of the judgment debtor in consequence of any application made by the judgment creditor under Section 23.
6.3 The powers conferred on a judge by Section 23 may be exercised by –
(1) a Master;
(2) the Admiralty Registrar; or
(3) a District Judge.
6.4 Every application notice filed under this paragraph by a judgment creditor, and every order made following such an application, must be served on the judgment debtor and on any of the other partners that are within the jurisdiction.
6.5 Every application notice filed under this paragraph by a partner of a judgment debtor, and every order made following such an application, must be served –
(1) on the judgment creditor and the judgment debtor; and
(2) on the other partners of the judgment debtor who are not joined in the application and who are within the jurisdiction.
6.6 An application notice or order served under this paragraph on one or more, but not all, of the partners of a partnership is deemed to have been served on all the partners of that partnership.