On 1 April 2025, a new Pilot Practice Note came into effect, which will run for an initial period of 12 months, until 31 March 2026. This pilot scheme provides for the automatic transfer of various types of insolvency applications to the Central London County Court (CLCC) from the High Court.
How will applications be transferred by the Court?
Applications made by CE-file to the High Court will be issued and then sent to the CLCC, which will subsequently allocate its own case number and list a hearing.
Which applications will be automatically transferred?
A total of 17 applications will now be automatically transferred to the CLCC, including the following:
- Applications to extend the term of office of an administrator
- Bankruptcy petitions where the petition debt is £500,000 or less
- Claims for the restoration of a company to the register
- Private examinations under both sections 236 and 366 of the Insolvency Act 1986
- Applications issued for the purposes of enforcement
Key considerations and practical implications
Significant delays possible
1. The CLCC only operates paper files, resulting in likely delays in relevant applications being printed, filed, and processed by the CLCC before hearing dates are issued.
2. Judge Dight CBA has indicated that no additional judges or resources have been allocated to the CLCC to accommodate the cases to be transferred to the CLCC, which is also likely to lead to significant delays in the listing of the applications.
Time-critical applications (e.g., applications to extend the term of office of an administrator)
1. When making applications to extend the term of office of an administrator, it is often requested that the solicitor download the application issued by the High Court and the transfer order from CE-file then send hard copies in the post to the CLCC so it can be listed for a hearing – this process can take around a week in itself.
2. The Practice Direction on Insolvency Proceedings suggests that applications to extend the term of office of an administrator should be made at least 6 weeks prior to the end of the administration. However, with the possibility of significant delays, applications should be issued as early as possible before the expiry of the administrator’s term in office.
At Nelsons, our specialists can provide expert guidance on restructuring and insolvency matters.
How Nelsons Can Help
Abbie Fotheringham is an Associate in our expert Restructuring & Insolvency team. Abbie specialises corporate and personal insolvency matters, including advising on trust and property issues within the context of bankruptcy.
If you have any questions in relation to the subjects discussed above, please contact Abbie or another member of the team in Derby, Leicester or Nottingham on 0808 258 0461 or via our online form.
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