The Water Industry (Special Administration) Rules 2009

Release from obligation or extension of time

31.—(1) This rule applies if—

(a)the special administrator refuses to exercise the power given it under section 22(5) of the Insolvency Act to—

(i)release a responsible person from the obligation to submit a statement of affairs, or

(ii)extend the period within which the statement must be submitted; and

(b)the responsible person applies to the court.

(2) The court may dismiss the application if it considers that the applicant has not shown sufficient cause for the release or extension.

(3) However, the court must not do so unless it first—

(a)gives the applicant 7 days’ notice that it proposes to do so; and

(b)invites the applicant to make oral representations to the court at a “preliminary hearing”.

(4) No notice need be given to any other person of the preliminary hearing.

(5) If the court does not dismiss the application at the preliminary hearing, the court must fix a venue for it to be heard, and give notice to the applicant accordingly.

(6) The applicant must, at least 14 days before the hearing of the application, send the special administrator—

(a)a notice of the hearing stating the venue;

(b)a copy of the application; and

(c)copies of any evidence that the applicant intends to rely on.

(7) The special administrator may appear and be heard on the application.

(8) The special administrator may file a written report of any matter that the special administrator considers should be drawn to the court’s attention (whether or not the special administrator appears at the hearing of the application).

(9) If the special administrator files such a report, the special administrator must also send a copy of it to the applicant no later than 5 days before the hearing.

(10) The court must send sealed copies of the order made on the application to the applicant and to the special administrator.

(11) On any application under this Rule, the applicant’s costs shall be paid in any event by the applicant and, unless the court otherwise orders, no allowance towards them shall be made out of the assets of the water company.