On 6th October 2022, the Chief Insolvency and Companies Court Judge Briggs issued a Practice Note (PD) on Disclosure in the Insolvency and Companies List. This revised practice note (PD57AD) replaces its predecessor (PD51U – Disclosure Pilot for the Business) from February 2019, coming into permanent effect.
Disclosure Pilot Scheme Made Permanent for Business and Property Courts
New Practice Direction 57AD adopts the Disclosure Pilot, which has been operating in the Business and Property Courts since January 2019, into the Civil Procedure Rules, permanently. The major change in the new PD57AD compared to its predecessor PD51U is that it does not apply to Part 8 claims unless specifically ordered (in which case the court is able to adapt the procedure so it is suitable for the proceedings).
Disclosure in Insolvency Proceedings
Part 8 contains its own process for the disclosure of documents that parties rely upon. The new Practice Direction on Disclosure in the Insolvency and Companies List also sets out the following:
- Forms of originating process familiar to users of the Insolvency and Companies List, such as petitions and Insolvency Act applications, are not ‘statements of the case’ for the purpose of PD57AD
- The only statement of the case in a Part 8 claim is the claim form.
- PD57AD Paragraph 1.12 provides the court with the power to apply the Practice Direction in proceeding under Part 8
- The Court may, as part of its case management powers, consider it appropriate to order disclosure by PD57AD
- Under section 994 of the Companies Act 2006, petitions issued for relief will need to be disclosed
- When disclosure is requested, the issues for disclosure with the Model or Models that apply will need to be identified. Often, it is not expected that the full procedure will be required for disclosure, including the completion of the Disclosure Review Document.
- Standard disclosure is no longer available
If you have any questions on how these changes might affect current or future litigation for your business, please contact a member of our litigation team.
