The Postal Administration Rules 2013

• Citation: S.I. 2013/3208
• Sections: 211

Section 1 Citation and Commencement

These Rules may be cited as the Postal Administration Rules 2013 and shall come into force on 31st January 2014.

Section 2 Construction and Interpretation

(1) In these Rules—

“the 1986 Act” means the Insolvency Act 1986;

“the 2011 Act” means the Postal Services Act 2011;

“ administrative receiver ” has the same meaning as in section 70(4) of the 2011 Act;

“ the appropriate fee ” has the meaning given in Rule 203 of these Rules;

“ authorised deposit-taker and former authorised deposit-taker ” has the meaning given in Rule 204 of these Rules;

“the Companies Act” means the Companies Act 2006 ;

“CPR” means the Civil Procedure Rules 1998 and “CPR” followed by a Part or rule number means the Part or rule with that number in those Rules;

“ debt ” has the meaning given in Rule 206 of these Rules;

“ enforcement officer ” means an individual who is authorised to act as an enforcement officer under the Courts Act 2003 ;

“ insolvency proceedings ” has the same meaning as in Rule 13.7 of the Insolvency Rules;

“the Insolvency Rules” means the Insolvency Rules 1986 ;

“OFCOM” means the Office of Communications;

“ petitioner ” has the meaning given in Rule 207 of these Rules;

“pre-postal administration costs” are—

fees charged, and

expenses incurred,

by the postal administrator, or another person qualified to act as an insolvency practitioner, before the company entered postal administration but with a view to its doing so;

“ the registrar ” has the meaning given in Rule 205 of these Rules;

“ registrar of companies ” means the registrar of companies for England and Wales;

“the Rules” means the Postal Administration Rules 2013;

“unpaid pre-postal administration costs” are pre-postal administration costs which had not been paid when the company entered postal administration; and

“ venue ” has the meaning given in Rule 208 of these Rules.

(2) References in the Rules to ex parte hearings shall be construed as references to hearings without notice being served on any other party; references to applications made ex parte as references to applications made without notice being served on any other party and other references which include the expression “ex parte” shall be similarly construed.

(3) References to a numbered paragraph shall, unless otherwise stated, be to the paragraph so numbered in Schedule B1 to the 1986 Act as modified and applied by Schedule 10 to the 2011 Act.

(4) References to other provisions of the 1986 Act are, where those provisions have been modified by Schedule 10 to the 2011 Act, references to those provisions as so modified.

(5) Where the universal service provider is a foreign company within the meaning of section 85 of the 2011 Act, references in the Rules to the affairs, business and property of the company are references only to its affairs and business so far as carried on in the United Kingdom and to its property in the United Kingdom unless otherwise stated.

(6) Where the universal service provider is an unregistered company, any requirement to send information to the registrar of companies applies only if the company is subject to a requirement imposed by virtue of section 1043 or 1046 of the Companies Act.

(7) Subject to paragraphs (1) to (6) of this Rule, Part 16 of the Rules has effect for their interpretation and application.

Section 3 Extent

The Rules apply in relation to a company which is a universal service provider which the courts in England and Wales have jurisdiction to wind up.

Section 4 Witness statement

Where it is proposed to apply to the court for a postal administration order to be made in relation to a company, the administration application shall be in Form PA1 and a witness statement complying with Rule 6 must be prepared with a view to its being filed with the court in support of the application.

Section 5 Form of application

(1) The application shall state whether it is made by OFCOM or the Secretary of State and the applicant’s address for service.

(2) Where it is made by OFCOM, the application shall contain a statement that it is made with the consent of the Secretary of State.

(3) There shall be attached to the application a written statement which shall be in Form PA2 made by each of the persons proposed to be postal administrator stating—

(a) that the person consents to accept the appointment; and

(b) details of any prior professional relationship(s) that the person has had with the company to which that person is to be appointed as postal administrator.

Section 6 Contents of application and witness statement

(1) The postal administration application shall state that the company is a universal service provider.

(2) The application shall state one or both of the following—

(a) the applicant’s belief that the company is unable, or is likely to be unable, to pay its debts;

(b) the Secretary of State has certified that it would be appropriate to petition for the winding up of the universal service provider under section 124A of the 1986 Act (petition for winding up on grounds of public interest).

(3) There shall be attached to the application a witness statement in support which shall contain—

(a) a statement of the company’s financial position, specifying (to the best of the applicant’s knowledge and belief) its assets and liabilities, including contingent and prospective liabilities;

(b) details of any security known or believed to be held by creditors of the company, and whether in any case the security is such as to confer power on the holder to appoint an administrative receiver or to appoint an administrator under paragraph 14. If an administrative receiver has been appointed, that fact shall be stated;

(c) details of any insolvency proceedings in relation to the company including any petition that has been presented for the winding up of the company so far as within the immediate knowledge of the applicant;

(d) details of any notice served in accordance with section 78 of the 2011 Act by any person intending to enforce any security over the company’s assets, so far as within the immediate knowledge of the applicant;

(e) details of any step taken to enforce any such security, so far as within the immediate knowledge of the applicant;

(f) details of any application for permission of the court to pass a resolution for the voluntary winding up of the company, so far as within the immediate knowledge of the applicant;

(g) where it is intended to appoint a number of persons as postal administrators, details of the matters set out in section 72(5) of the 2011 Act regarding the exercise of the powers and duties of the postal administrators; and

(h) any other matters which, in the opinion of those intending to make the application for a postal administration order, will assist the court in deciding whether to make such an order, so far as lying within the knowledge or belief of the applicant.

Section 7 Filing of application

(1) The application (and all supporting documents) shall be filed with the court, with a sufficient number of copies for service and use as provided by Rule 8.

(2) Each of the copies filed shall have applied to it the seal of the court and be issued to the applicant; and on each copy there shall be endorsed the date and time of filing.

(3) The court shall fix a venue for the hearing of the application and this also shall be endorsed on each copy of the application issued under paragraph (2) of this Rule.

(4) After the application is filed, it is the duty of the applicant to notify the court in writing of the existence of any insolvency proceedings in relation to the company, as soon as the applicant becomes aware of them.

Section 8 Service of application

(1) In the following paragraphs of this Rule, references to the application are to a copy of the application issued by the court under Rule 7(2) together with the witness statement required by Rule 6 and the documents attached to the application.

(2) Notification for the purposes of section 70(2) of the 2011 Act shall be by way of service in accordance with Rule 10, verified in accordance with Rule 11.

(3) The application shall be served, in addition to those persons referred to in section 70(2) of the 2011 Act—

(a) on any administrative receiver that has been appointed;

(b) if there is pending an administration application under Schedule B1 to the 1986 Act, without the modifications made by Schedule 10 to the 2011 Act, on the applicant;

(c) if there is pending a petition for the winding-up of the company, on the petitioner (and also on the provisional liquidator, if any);

(d) on any creditor who has served notice in accordance with section 78(1) of the 2011 Act of their intention to enforce their security over property of the company;

(e) on the person proposed as postal administrator;

(f) on the company;

(g) if the applicant is the Secretary of State, on OFCOM;

(h) if the applicant is OFCOM, on the Secretary of State;

(i) on any supervisor of a voluntary arrangement under Part I of the 1986 Act who has been appointed.

Section 9 Notice to officers charged with execution of writs or other process

The applicant shall as soon as reasonably practicable after filing the application give notice of its being made to—

(a) any enforcement officer or other officer who to the applicant’s knowledge is charged with an execution or other legal process against the company or its property; and

(b) any person who to the applicant’s knowledge has distrained against the company or its property.

Section 10 Manner in which service to be effected

(1) Service of the application in accordance with Rule 8 shall be effected by the applicant, or the applicant’s solicitor, or by a person instructed by the applicant or the applicant’s solicitor, not less than 5 business days before the date fixed for the hearing.

(2) Service shall be effected as follows—

(a) on the company (subject to paragraph (3) of this Rule), by delivering the documents to its registered office;

(b) on any other person (subject to paragraph (4) of this Rule), by delivering the documents to their proper address;

(c) in either case, in such other manner as the court may direct.

(3) If delivery to the company’s registered office is not practicable or if the company is an unregistered company, service may be effected by delivery to its last known principal place of business in England and Wales.

(4) Subject to paragraph (5) of this Rule, for the purposes of paragraph (2)(b) of this Rule, a person’s proper address is any which they have previously notified as their address for service; but if they have not notified any such address, service may be effected by delivery to their usual or last known address.

(5) In the case of a person who—

(a) is an authorised deposit-taker or former authorised deposit-taker;

(b) either-

(i) has appointed, or is or may be entitled to appoint, an administrative receiver of the company, or

(ii) is, or may be, entitled to appoint an administrator of the company under paragraph 14; and

(c) has not notified an address for service,

the proper address is the address of an office of that person where, to the knowledge of the applicant, the company maintains a bank account or, where no such office is known to the applicant, the registered office of that person, or, if there is no such office, their usual or last known address.

Section 11 Proof of service

(1) Service of the application must be verified by a certificate of service.

(2) The certificate of service must be sufficient to identify the application served and must specify—

(a) the name and registered number of the company;

(b) the address of the registered office of the company;

(c) the name of the applicant;

(d) the court to which the application was made and the court reference number;

(e) the date of the application;

(f) whether the copy served was a sealed copy;

(g) the date on which service was effected; and

(h) the manner in which service was effected.

(3) The certificate of service shall be filed with the court as soon as reasonably practicable after service, and in any event not less than 1 business day before the hearing of the application.

Section 12 The hearing

(1) At the hearing of the postal administration application, any of the following may appear or be represented—

(a) The Secretary of State;

(b) OFCOM;

(c) the company;

(d) one or more of the directors;

(e) if an administrative receiver has been appointed, that person;

(f) any person who has presented a petition for the winding-up of the company;

(g) the person proposed for appointment as postal administrator;

(h) any person that is the holder of a qualifying floating charge;

(i) any person who has applied to the court for an administration order under Schedule B1 to the 1986 Act, without the modifications made by Schedule 10 to the 2011 Act ;

(j) any creditor who has served notice in accordance with section 78(1) of the 2011 Act of their intention to enforce their security over property of the company;

(k) any supervisor of a voluntary arrangement under Part I of the 1986 Act;

(l) with the permission of the court, any other person who appears to have an interest justifying their appearance.

(2) If the court makes a postal administration order, it shall be in Form PA3.

(3) If the court makes a postal administration order, the costs of the applicant, and of any person whose costs are allowed by the court, are payable as an expense of the postal administration.

Section 13 Notice of postal administration order

(1) If the court makes a postal administration order, it shall as soon as reasonably practicable send two sealed copies of the order to the person who made the application.

(2) The applicant shall send a sealed copy of the order as soon as reasonably practicable to the person appointed as postal administrator.

(3) If the court makes an order under section 71(1)(d) of the 2011 Act or any other order under section 71(1)(f) of the 2011 Act, it shall give directions as to the persons to whom, and how, notice of that order is to be given.

Section 14 Notification and advertisement of postal administrator’s appointment

(1) The notice of appointment to be given by the postal administrator as soon as reasonably practicable after appointment under paragraph 46(2)(b) shall be gazetted and may be advertised in such other manner as the postal administrator thinks fit.

(2) In addition to the standard contents, the notice under paragraph (1) of this Rule must state—

(a) that a postal administrator has been appointed; and

(b) the date of the appointment.

(3) The postal administrator shall, as soon as reasonably practicable after the date specified in paragraph 46(6), give notice of their appointment—

(a) if the application for the postal administration order was made by the Secretary of State, to OFCOM;

(b) if the application for the postal administration order was made by OFCOM, to the Secretary of State;

(c) to any receiver or administrative receiver that has been appointed;

(d) if there is pending a petition for the winding up of the company, to the petitioner (and also to the provisional liquidator, if any);

(e) to any person who has applied to the court for an administration order under Schedule B1 to the 1986 Act, without the modifications made by Schedule 10 to the 2011 Act, in relation to the company;

(f) to any enforcement officer who, to the postal administrator’s knowledge, is charged with execution or other legal process against the company;

(g) to any person who, to the postal administrator’s knowledge, has distrained against the company or its property; and

(h) any supervisor of a voluntary arrangement under Part I of the 1986 Act.

(4) Where, under a provision of Schedule B1 to the 1986 Act or the Rules, the postal administrator is required to send a notice of their appointment to any person other than the registrar of companies they shall do so in Form PA4.

Section 15 Notice requiring statement of affairs

(1) In this Part “ relevant person ” shall have the meaning given to it in paragraph 47(3).

(2) The postal administrator shall send notice in Form PA5 to each relevant person whom the postal administrator determines appropriate requiring them to prepare and submit a statement of the company’s affairs.

(3) The notice shall inform each of the relevant persons—

(a) of the names and addresses of all others (if any) to whom the same notice has been sent;

(b) of the time within which the statement must be delivered;

(c) of the effect of paragraph 48(4) (penalty for non-compliance); and

(d) of the application to the relevant person, and to each other relevant person, of section 235 of the 1986 Act (duty to provide information, and to attend on the administrator, if required).

(4) The postal administrator shall furnish each relevant person to whom the postal administrator has sent notice in Form PA5 with the forms required for the preparation of the statement of affairs.

Section 16 Verification and filing

(1) The statement of the company’s affairs shall be in Form PA6, contain all the particulars required by that form and be verified by a statement of truth by the relevant person.

(2) The postal administrator may require any relevant person to submit a statement of concurrence in Form PA7 stating that they concur in the statement of affairs. Where the postal administrator does so, the postal administrator shall inform the person making the statement of affairs of that fact.

(3) The statement of affairs shall be delivered by the relevant person making the statement of truth, together with a copy, to the postal administrator. The relevant person shall also deliver a copy of the statement of affairs to all those persons whom the postal administrator has required to make a statement of concurrence.

(4) A person required to submit a statement of concurrence shall do so before the end of the period of 5 business days (or such other period as the postal administrator may agree) beginning with the day on which the statement of affairs being concurred with is received by them.

(5) A statement of concurrence may be qualified in respect of matters dealt with in the statement of affairs, where the maker of the statement of concurrence is not in agreement with the relevant person, or the maker of the statement considers the statement of affairs to be erroneous or misleading, or the maker of the statement is without the direct knowledge necessary for concurring with it.

(6) Every statement of concurrence shall be verified by a statement of truth and be delivered to the postal administrator by the person who makes it, together with a copy of it.

(7) Subject to Rule 17, the postal administrator shall as soon as reasonably practicable send to the registrar of companies a copy of the statement of affairs and any statement of concurrence.

Section 17 Limited disclosure

(1) Where the postal administrator thinks that it would prejudice the conduct of the postal administration or might reasonably be expected to lead to violence against any person for the whole or part of the statement of the company’s affairs to be disclosed, the postal administrator may apply to the court for an order of limited disclosure in respect of the statement, or any specified part of it.

(2) The court may, on such application, order that the statement or, as the case may be, the specified part of it, shall not be filed with the registrar of companies.

(3) The postal administrator shall as soon as reasonably practicable send to the registrar of companies a copy of the order and the statement of affairs (to the extent provided by the order) and any statement of concurrence.

(4) If a creditor seeks disclosure of a statement of affairs or a specified part of it in relation to which an order has been made under this Rule, they may apply to the court for an order that the postal administrator disclose it or a specified part of it. The application shall be supported by written evidence in the form of a witness statement.

(5) The applicant shall give the postal administrator notice of their application at least 3 business days before the hearing.

(6) The court may make any order for disclosure subject to any conditions as to confidentiality, duration, the scope of the order in the event of any change of circumstances, or other matters as it sees just.

(7) If there is a material change in circumstances rendering the limit on disclosure or any part of it unnecessary, the postal administrator shall, as soon as reasonably practicable after the change, apply to the court for the order or any part of it to be rescinded.

(8) The postal administrator shall, as soon as reasonably practicable after the making of an order under paragraph (7) of this Rule, file with the registrar of companies a copy of the statement of affairs to the extent provided by the order.

(9) When the statement of affairs is filed in accordance with paragraph (8) of this Rule, the postal administrator shall, where the postal administrator has sent a statement of proposals under paragraph 49, provide the creditors with a copy of the statement of affairs as filed, or a summary thereof.

(10) The provisions of Part 31 of the CPR shall not apply to an application under this Rule.

Section 18 Release from duty to submit statement of affairs; extension of time

(1) The power of the postal administrator under paragraph 48(2) to give a release from the obligation imposed by paragraph 47(1), or to grant an extension of time, may be exercised at the postal administrator’s own discretion, or at the request of any relevant person.

(2) A relevant person may, if they request a release or extension of time and it is refused by the postal administrator, apply to the court for it.

(3) The court may, if it thinks that no sufficient cause is shown for the application, dismiss it without a hearing but it shall not do so without giving the relevant person at least 5 business days’ notice, upon receipt of which the relevant person may request the court to list the application for a without notice hearing. If the application is not dismissed the court shall fix a venue for it to be heard, and give notice to the relevant person accordingly.

(4) The relevant person shall, at least 14 days before the hearing, send to the postal administrator a notice stating the venue and accompanied by a copy of the application and of any evidence which the relevant person intends to adduce in support of it.

(5) The postal administrator may appear and be heard on the application and, whether or not they appear, they may file a written report of any matters which they consider ought to be drawn to the court’s attention. If such a report is filed, a copy of it shall be sent by the postal administrator to the relevant person, not later than 5 business days before the hearing.

(6) Sealed copies of any order made on the application shall be sent by the court to the relevant person and the postal administrator.

(7) On any application under this Rule the relevant person’s costs shall be paid in any event by the relevant person and, unless the court otherwise orders, no allowance towards them shall be made as an expense of the postal administration.

Section 19 Expenses of statement of affairs

(1) A relevant person making the statement of affairs of the company or statement of concurrence shall be allowed, and paid by the postal administrator as an expense of the postal administration, any expenses incurred by the relevant person in so doing which the postal administrator considers reasonable.

(2) Any decision by the postal administrator under this Rule is subject to appeal to the court.

(3) Nothing in this Rule relieves a relevant person from any obligation with respect to the preparation, verification and submission of the statement of affairs, or to the provision of information to the postal administrator.

Section 20 Postal administrator’s proposals

(1) The postal administrator shall, under paragraph 49, make a statement which the postal administrator shall send to the registrar of companies.

(2) The statement shall include, in addition to those matters set out in paragraph 49—

(a) details of the court where the proceedings are and the relevant court reference number;

(b) the full name, registered address, registered number and any other trading names of the company;

(c) details relating to their appointment as postal administrator, including the date of appointment and whether the postal administration application was made by OFCOM or the Secretary of State and, where there are joint postal administrators, details of the matters set out in section 72(5) of the 2011 Act;

(d) the names of the directors and secretary of the company and details of any shareholdings in the company they may have;

(e) an account of the circumstances giving rise to the appointment of the postal administrator;

(f) if a statement of the company’s affairs has been submitted, a copy or summary of it, with the postal administrator’s comments, if any;

(g) if an order limiting the disclosure of the statement of affairs (under Rule 17) has been made, a statement of that fact, as well as—

(i) details of who provided the statement of affairs;

(ii) the date of the order of limited disclosure; and

(iii) the details or a summary of the details that are not subject to that order;

(h) if a full statement of affairs is not provided, the names, addresses and debts of the creditors including details of any security held;

(i) if no statement of affairs has been submitted, details of the financial position of the company at the latest practicable date (which must, unless the court otherwise orders, be a date not earlier than that on which the company entered postal administration), a list of the company’s creditors including their names, addresses and details of their debts, including any security held, and an explanation as to why there is no statement of affairs;

(j) except where the postal administrator proposes a voluntary arrangement in relation to the company and subject to paragraph (5) of this Rule—

(i) to the best of the postal administrator’s knowledge and belief—

(aa) an estimate of the value of the prescribed part (whether or not they propose to make an application to court under section 176A(5) or section 176A(3) of the 1986 Act applies); and

(bb) an estimate of the value of the company’s net property; and

(ii) whether, and, if so, why, the postal administrator proposes to make an application to court under section 176A(5) of the 1986 Act;

(k) a statement complying with paragraph (3) of this Rule of any pre-postal administration costs charged or incurred by the postal administrator or, to the postal administrator’s knowledge, by any other person qualified to act as an insolvency practitioner.

(l) a statement (which must comply with paragraph (4) of this Rule where that paragraph applies) of how it is envisaged the purpose of the postal administration will be achieved and how it is proposed that the postal administration shall end;

(m) the manner in which the affairs and business of the company—

(i) have, since the date of the postal administrator’s appointment, been managed and financed, including, where any assets have been disposed of, the reasons for such disposals and the terms upon which such disposals were made; and

(ii) will continue to be managed and financed; and

(n) such other information (if any) as the postal administrator thinks necessary to enable creditors to decide whether or not to vote for the adoption of the proposals.

(3) A statement of pre-postal administration costs complies with this paragraph if it includes—

(a) details of any agreement under which the fees were charged and expenses incurred, including the parties to the agreement and the date on which the agreement was made;

(b) details of the work done for which the fees were charged and expenses incurred;

(c) an explanation of why the work was done before the company entered postal administration and how it would further the achievement of the objective of the postal administration;

(d) a statement of the amount of the pre-postal administration costs, setting out separately—

(i) the fees charged by the postal administrator;

(ii) the expenses incurred by the postal administrator;

(iii) the fees charged (to the postal administrator’s knowledge) by any other person qualified to act as an insolvency practitioner (and, if more than one, by each separately); and

(iv) the expenses incurred (to the postal administrator’s knowledge) by any other person qualified to act as an insolvency practitioner (and, if more than one, by each separately);

(e) a statement of the amounts of pre-postal administration costs which have already been paid (set out separately as under sub-paragraph (d));

(f) the identity of the person who made the payment or, if more than one person made the payment, the identity of each such person and of the amounts paid by each such person set out separately as under sub-paragraph (d);

(g) a statement of the amounts of unpaid pre-postal administration costs (set out separately as under paragraph (d)); and

(h) a statement that the payment of unpaid pre-postal administration costs as an expense of the postal administration is subject to approval under Rule 38.

(4) This paragraph applies where it is proposed that the postal administration will end by the company moving to a creditors’ voluntary liquidation; and in that case, the statement required by paragraph (2)(l) of this Rule must include—

(a) details of the proposed liquidator;

(b) where applicable, the declaration required by section 231 of the 1986 Act; and

(c) a statement that the creditors may nominate a different person as liquidator in accordance with paragraph 83(7)(a) and Rule 81(3).

(5) Nothing in paragraph (2)(j) of this Rule is to be taken as requiring any such estimate to include any information, the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.

(6) Where the court orders, upon an application by the postal administrator under paragraph 107, an extension of the period of time in paragraph 49(5), the postal administrator must as soon as reasonably practicable after the making of the order—

(a) notify in Form PA8 every creditor of the company and every member of the company of whose address (in either case) the postal administrator is aware, and

(b) send a copy of the notification to the registrar of companies.

(7) Where the postal administrator wishes to publish a notice under paragraph 49(6), the notice shall be advertised in such manner as the postal administrator thinks fit.

(8) In addition to the standard contents, the notice under paragraph (7) of this Rule must state—

(a) that members can write for a copy of the statement of proposals for achieving the purpose of postal administration; and

(b) the address to which to write.

(9) This notice must be published as soon as reasonably practicable after the postal administrator sends their statement of proposals to the company’s creditors but no later than 8 weeks (or such other period as may be agreed by the creditors or as the court may order) from the date that the company entered postal administration.

Section 21 Limited disclosure of paragraph 49 statement

(1) Where the postal administrator thinks that it would prejudice the conduct of the postal administration or might reasonably be expected to lead to violence against any person for any of the matters specified in Rule 20(2)(h) and (i) to be disclosed, the postal administrator may apply to the court for an order of limited disclosure in respect of any specified part of the statement under paragraph 49.

(2) The court may, on such application, order that some or all of the specified part of the statement must not be sent to the registrar of companies or to creditors or members of the company as otherwise required by paragraph 49(4).

(3) The postal administrator must as soon as reasonably practicable send to the persons specified in paragraph 49(4) the statement under paragraph 49 (to the extent provided by the order) and an indication of the nature of the matter in relation to which the order was made.

(4) The postal administrator must also send a copy of the order to the registrar of companies.

(5) A creditor who seeks disclosure of a part of a statement under paragraph 49 in relation to which an order has been made under this Rule may apply to the court for an order that the postal administrator disclose it. The application must be supported by written evidence in the form of a witness statement.

(6) The applicant must give the postal administrator notice of the application at least 3 business days before the hearing.

(7) The court may make any order for disclosure subject to any conditions as to confidentiality, duration, the scope of the order in the event of any change of circumstances, or other matters as it sees just.

(8) If there is a material change in circumstances rendering the limit on disclosure or any part of it unnecessary, the postal administrator must, as soon as reasonably practicable after the change, apply to the court for the order or any part of it to be rescinded.

(9) The postal administrator must, as soon as reasonably practicable after the making of an order under paragraph (8) of this Rule, send to the persons specified in paragraph 49(4) a copy of the statement under paragraph 49 to the extent provided by the order.

(10) The provisions of CPR Part 31 do not apply to an application under this Rule.

Section 22 Creditors’ meetings generally

(1) This Rule applies to creditors’ meetings summoned by the postal administrator under paragraph 62 (general power to summon meetings of creditors).

(2) Notice of any meeting referred to in paragraph (1) of this Rule shall be in Form PA9.

(3) In fixing the venue for the meeting, the postal administrator shall have regard to the convenience of creditors and the meeting shall be summoned for commencement between 10.00 and 16.00 hours on a business day, unless the court otherwise directs.

(4) Subject to paragraphs (6) and (7) of this Rule, at least 14 days’ notice of the meeting shall be given to all creditors who are known to the postal administrator and had claims against the company at the date when the company entered postal administration unless that creditor has subsequently been paid in full; and the notice shall—

(a) specify the purpose of the meeting;

(b) contain a statement of the effect of Rule 26 (entitlement to vote); and

(c) contain the forms of proxy.

(5) As soon as reasonably practicable after notice of the meeting has been given, the postal administrator must have gazetted a notice which, in addition to the standard contents, must state—

(a) that a creditors’ meeting is to take place;

(b) the venue fixed for the meeting;

(c) the purpose of the meeting; and

(d) a statement of the effect of Rule 26 (entitlement to vote).

(6) If within 30 minutes from the time fixed for commencement of the meeting there is no person present to act as chair, the meeting stands adjourned to the same time and place in the following week or, if that is not a business day, to the business day immediately following.

(7) If within 30 minutes from the time fixed for the commencement of the meeting those persons attending the meeting do not constitute a quorum, the chair may adjourn the meeting to such time and place as the chair may appoint.

(8) Once only in the course of the meeting the chair may, without an adjournment, declare the meeting suspended for any period up to 1 hour.

(9) The chair may, and must if the meeting so resolves, adjourn the meeting to such time and place as seems to the chair to be appropriate in the circumstances. An adjournment under this paragraph must not be for a period of more than 14 days, subject to the direction of the court.

(10) If there are subsequently further adjournments, the final adjournment must not be to a day later than 14 days after the date on which the meeting was originally held.

(11) Where a meeting is adjourned under this Rule, proofs and proxies may be used if lodged at any time up to 12.00 hours on the business day immediately before the adjourned meeting.

(12) Paragraph (3) of this Rule applies with regard to the venue fixed for a meeting adjourned under this Rule.

Section 23 The chair at meetings

(1) At any meeting of creditors summoned by the postal administrator, either the postal administrator shall be chair, or a person nominated by the postal administrator in writing to act in their place.

(2) A person so nominated must be either—

(a) one who is qualified to act as an insolvency practitioner in relation to the company; or

(b) an employee of the postal administrator or the postal administrator’s firm who is experienced in insolvency matters.

(3) Where the chair holds a proxy which includes a requirement to vote for a particular resolution and no other person proposes that resolution—

(a) the chair must propose it unless the chair considers that there is good reason for not doing so, and

(b) if the chair does not propose it, the chair must as soon as reasonably practicable after the meeting notify the principal of the reason why not.

Section 24 Creditors’ meeting for nomination of alternative liquidator

(1) Where under Rules 20(4) or 33(2)(g) the postal administrator has proposed that the company enter creditors’ voluntary liquidation once the postal administration has ended, the postal administrator must, in the circumstances detailed in paragraph (2) of this Rule, call a meeting of creditors for the purpose of nominating a person other than the person named as proposed liquidator in the postal administrator’s proposals or revised proposals.

(2) The postal administrator must call a meeting of creditors where such a meeting is requested by creditors of the company whose debts amount to at least 10 per cent of the total debts of the company.

(3) The request for a creditors’ meeting for the purpose set out in paragraph (1) of this Rule must be in Form PA10. A request for such a meeting must be made within 8 business days of the date on which the postal administrator’s statement of proposals is sent out.

(4) A request under this Rule must include—

(a) a list of creditors concurring with the request, showing the amounts of the respective debts in the postal administration; and

(b) from each creditor concurring, written confirmation of the creditor’s concurrence;

but this paragraph does not apply if the requesting creditor’s debt is alone sufficient without the concurrence of other creditors.

(5) A meeting requested under this Rule must be held within 28 days of the postal administrator’s receipt of the notice requesting the meeting.

Section 25 Notice of meetings by advertisement only

(1) The court may order that notice of any meeting be given by advertisement and not by individual notice to the persons concerned.

(2) In considering whether to act under this Rule, the court must have regard to the cost of advertisement, the amount of assets available and the extent of the interest of creditors, members or any particular class of either.

Section 26 Entitlement to vote

(1) Subject as follows, at a meeting of creditors in postal administration proceedings a person is entitled to vote only if—

(a) they have given to the postal administrator, not later than 12.00 hours on the business day before the day fixed for the meeting, details in writing of the debt which they claim to be due to them from the company;

(b) the claim has been duly admitted under Rule 27 or this Rule; and

(c) there has been lodged with the postal administrator any proxy which they intend to be used on their behalf,

and details of the debt must include any calculation for the purposes of Rules 28 to 30.

(2) The chair of the meeting may allow a creditor to vote, notwithstanding that the creditor has failed to comply with paragraph (1)(a) of this Rule, if satisfied that the failure was due to circumstances beyond the creditor’s control.

(3) The chair of the meeting may call for any document or other evidence to be produced to them, where the chair thinks it necessary for the purpose of substantiating the whole or any part of the claim.

(4) Votes are calculated according to the amount of a creditor’s claim as at the date on which the company entered postal administration, less any payments that have been made to them after that date in respect of their claim and any adjustment by way of set-off in accordance with Rule 55 as if that Rule were applied on the date that the votes are counted.

(5) A creditor shall not vote in respect of a debt for an unliquidated amount, or any debt whose value is not ascertained, except where the chair agrees to put upon the debt an estimated minimum value for the purpose of entitlement to vote and admits the claim for that purpose.

(6) No vote shall be cast by virtue of a claim more than once on any resolution put to the meeting.

Section 27 Admission and rejection of claims

(1) At any creditors’ meeting the chair has power to admit or reject a creditor’s claim for the purpose of their entitlement to vote; and the power is exercisable with respect to the whole or any part of the claim.

(2) The chair’s decision under this Rule, or in respect of any matter arising under Rule 26, is subject to appeal to the court by any creditor.

(3) If the chair is in doubt whether a claim should be admitted or rejected, the chair shall mark it as objected to and allow the creditor to vote, subject to their vote being subsequently declared invalid if the objection to the claim is sustained.

(4) If on an appeal the chair’s decision is reversed or varied, or a creditor’s vote is declared invalid, the court may order that another meeting be summoned, or make such other order as it thinks just.

(5) An application to the court by way of appeal under this Rule against a decision of the chair must be made not later than 21 days after the date of the meeting.

(6) Neither the postal administrator nor any person nominated by the postal administrator to be chair is personally liable for costs incurred by any person in respect of an appeal to the court under this Rule, unless the court makes an order to that effect.

Section 28 Secured creditors

At a meeting of creditors a secured creditor is entitled to vote only in respect of the balance (if any) of their debt after deducting the value of their security as estimated by them.

Section 29 Holders of negotiable instruments

A creditor shall not vote in respect of a debt on, or secured by, a current bill of exchange or promissory note, unless the creditor is willing—

(a) to treat the liability to them on the bill or note of every person who is liable on it antecedently to the company, and against whom a bankruptcy order has not been made (or, in the case of a company, which has not gone into liquidation), as a security in their hands; and

(b) to estimate the value of the security and, for the purpose of their entitlement to vote (but not for dividend), to deduct it from their claim.

Section 30 Hire-purchase, conditional sale and chattel leasing agreements

(1) Subject as follows, an owner of goods under a hire-purchase or chattel leasing agreement, or a seller of goods under a conditional sale agreement, is entitled to vote in respect of the amount of the debt due and payable to them by the company on the date that the company entered postal administration.

(2) In calculating the amount of any debt for this purpose, no account shall be taken of any amount attributable to the exercise of any right under the relevant agreement, so far as the right has become exercisable solely by virtue of the making of a postal administration application or any matter arising as a consequence, or of the company entering postal administration.

Section 31 Resolutions

(1) Subject to paragraph (2) of this Rule, at a creditors’ meeting in postal administration proceedings, a resolution is passed when a majority (in value) of those present and voting, in person or by proxy, have voted in favour of it.

(2) Any resolution is invalid if those voting against it include more than half in value of the creditors to whom notice of the meeting was sent and who are not, to the best of the chair’s belief, persons connected with the company.

(3) In the case of a resolution for the nomination of a person to act as liquidator once the postal administration has ended—

(a) subject to paragraph (4) of this Rule, if on any vote there are two persons put forward by creditors for nomination as liquidator, the person who obtains the most support is nominated as liquidator;

(b) if there are three or more persons put forward by creditors for nomination as liquidator, and one of them has a clear majority over both or all the others together, that one is nominated as liquidator;

(c) in any other case, the chair of the meeting must continue to take votes (disregarding at each vote any person who has withdrawn and, if no person has withdrawn, the person who obtained the least support last time), until a clear majority is obtained for any one person.

(4) The support referred to in paragraph (3)(a) of this Rule must represent a majority in value of all those present (in person or by proxy) at the meeting and entitled to vote.

(5) Where on such a resolution no person is nominated as liquidator, the person named as proposed liquidator in the postal administrator’s proposals or revised proposals shall be the liquidator once the postal administration has ended.

(6) The chair may at any time put to the meeting a resolution for the joint appointment of any two or more persons put forward by creditors for nomination as liquidator.

(7) In this Rule “ connected with the company ” has the same meaning as “ connected with a company ” in section 249 of the 1986 Act.

Section 32 Minutes

(1) The chair of the meeting must cause minutes of its proceedings to be kept.

(2) The minutes must be authenticated by the chair, and be retained by the chair as part of the records of the postal administration.

(3) The minutes must include—

(a) a list of the names of creditors who attended (personally or by proxy) and their claims; and

(b) a record of every resolution passed.

Section 33 Revision of the postal administrator’s proposals

(1) The postal administrator shall, as soon as reasonably practicable, under paragraph 54, make a statement setting out the proposed revisions to their proposals which they shall send to all those to whom they are required to send a copy of their revised proposals and to the registrar of companies.

(2) The statement of revised proposals shall include—

(a) details of the court where the proceedings are and the relevant court reference number;

(b) the full name, registered address, registered number and any other trading names of the company;

(c) details relating to their appointment as postal administrator, including the date of appointment and whether the postal administration application was made by the Secretary of State or OFCOM;

(d) the names of the directors and secretary of the company and details of any shareholdings in the company they may have;

(e) a summary of the initial proposals and the reason(s) for proposing a revision;

(f) details of the proposed revision including details of the postal administrator’s assessment of the likely impact of the proposed revision upon creditors generally or upon each class of creditors (as the case may be);

(g) where a proposed revision relates to the ending of the postal administration by a creditors’ voluntary liquidation and the nomination of a person to be the proposed liquidator of the company—

(i) details of the proposed liquidator,

(ii) where applicable, the declaration required by section 231 of the 1986 Act, and

(iii) a statement that the creditors may nominate a different person as liquidator in accordance with paragraph 83(7)(a) and Rule 81(3); and

(h) any other information that the postal administrator thinks necessary to enable creditors to decide whether or not to vote for the proposed revisions.

(3) Subject to paragraph 54(4), within 5 business days of sending out the statement in paragraph (1) of this Rule, the postal administrator shall send a copy of the statement to every member of the company.

(4) Any notice to be published by the postal administrator acting under paragraph 54(4) shall be advertised in such manner as the postal administrator thinks fit.

(5) The notice must be published as soon as reasonably practicable after the postal administrator sends the statement to the creditors and in addition to the standard contents must state—

(a) that members can write for a copy of the statement of revised proposals for the postal administration; and

(b) the address to which to write.

Section 34 Reports to creditors

(1) The postal administrator must prepare a report (“the progress report”) which includes—

(a) details of the court where the proceedings are and the relevant court reference number;

(b) full details of the company’s name, address of registered office and registered number;

(c) full details of the postal administrator’s name and address, date of appointment and name and address of applicant for the postal administration application, including any changes in the postal administrator, and, in the case of joint postal administrators, their functions as set out in the statement made for the purposes of section 72(5) of the 2011 Act;

(d) details of progress during the period of the report, including a receipts and payments account (as detailed in paragraph (2) of this Rule);

(e) details of any assets that remain to be realised; and

(f) any other relevant information for the creditors.

(2) A receipts and payments account must be in the form of an abstract showing receipts and payments during the period of the report and, where the postal administrator has ceased to act, must also include a statement as to the amount paid to unsecured creditors by virtue of the application of section 176A of the 1986 Act.

(3) The progress report must, except where paragraph (4) of this Rule applies, cover the period of 6 months commencing on the date on which the company entered postal administration and every subsequent period of 6 months.

(4) The period to be covered by a progress report ends on the date when a postal administrator ceases to act, and the period to be covered by each subsequent progress report of a new postal administrator is each successive period of 6 months beginning immediately after that date (subject to the further application of this paragraph when another postal administrator ceases to act).

(5) The postal administrator must send a copy of the progress report within 1 month of the end of the period covered by the report, to —

(a) the Secretary of State;

(b) OFCOM;

(c) the creditors, and

(d) the registrar of companies;

(6) The court may, on the postal administrator’s application, extend the period of 1 month mentioned in paragraph (5) of this Rule, or make such other order in respect of the content of the report as it thinks just.

(7) If the postal administrator makes default in complying with this Rule, the postal administrator is liable to a fine and, for continued contravention, to a daily default fine.

Section 35 Venue and conduct of company meeting

(1) Where the postal administrator summons a meeting of members of the company, the postal administrator shall fix a venue for it having regard to the postal administrator’s convenience.

(2) The chair of the meeting shall be the postal administrator or a person nominated by the postal administrator in writing to act in the postal administrator’s place.

(3) A person so nominated must be either—

(a) one who is qualified to act as an insolvency practitioner in relation to the company; or

(b) an employee of the postal administrator or the postal administrator’s firm who is experienced in insolvency matters.

(4) If within 30 minutes from the time fixed for commencement of the meeting there is no person present to act as chair, the meeting stands adjourned to the same time and place in the following week or, if that is not a business day, to the business day immediately following.

(5) Subject to anything to the contrary in the 1986 Act and the Rules, the meeting must be summoned and conducted—

(a) in the case of a company incorporated—

(i) in England and Wales, or in Wales, or

(ii) outside the United Kingdom other than in an EEA state,

in accordance with the law of England and Wales, including any applicable provision in or made under the Companies Act;

(b) in the case of a company incorporated in an EEA state other than the United Kingdom, in accordance with the law of that state applicable to meetings of the company.

(6) The chair of the meeting shall cause minutes of its proceedings to be entered in the company’s minute book.

Section 36 Authority to dispose of property

(1) The following applies where the postal administrator applies to the court under paragraphs 71 or 72 for authority to dispose of property of the company which is subject to a security (other than a floating charge), or goods in the possession of the company under a hire purchase agreement.

(2) The court shall fix a venue for the hearing of the application, and the postal administrator shall as soon as reasonably practicable give notice of the venue to the person who is the holder of the security or, as the case may be, the owner under the agreement.

(3) If an order is made under paragraphs 71 or 72 the court shall send two sealed copies to the postal administrator.

(4) The postal administrator shall send one of them to that person who is the holder of the security or owner under the agreement.

(5) The postal administrator must send a copy of the sealed order to the registrar of companies.

Section 37 Priority of expenses of postal administration

(1) The expenses of the postal administration are payable in the following order of priority—

(a) expenses properly incurred by the postal administrator in performing the postal administrator’s functions in the administration of the company;

(b) the cost of any security provided by the postal administrator in accordance with the 1986 Act or the Rules;

(c) where a postal administration order was made, the costs of the applicant and any person appearing on the hearing of the application;

(d) any amount payable to a person employed or authorised, under Part 3 of the Rules, to assist in the preparation of a statement of affairs or statement of concurrence;

(e) any allowance made, by order of the court, towards costs on an application for release from the obligation to submit a statement of affairs or statement of concurrence;

(f) any necessary disbursements by the postal administrator in the course of the postal administration (but not including any payment of corporation tax in circumstances referred to in sub-paragraph (i) below);

(g) the remuneration or emoluments of any person who has been employed by the postal administrator to perform any services for the company, as required or authorised under the 1986 Act or the Rules;

(h) the remuneration of the postal administrator fixed by the court under Part 8 of the Rules and unpaid pre-postal administration costs approved under Rule 38;

(i) the amount of any corporation tax on chargeable gains accruing on the realisation of any asset of the company (without regard to whether the realisation is effected by the postal administrator, a secured creditor, or a receiver or manager appointed to deal with a security).

(2) The priorities laid down by paragraph (1) of this Rule are subject to the power of the court to make orders under paragraph (3) of this Rule where the assets are insufficient to satisfy the liabilities.

(3) The court may, in the event of the assets being insufficient to satisfy the liabilities, make an order as to the payment out of the assets of the expenses incurred in the postal administration in such order of priority as the court thinks just.

(4) For the purposes of paragraph 99(3), the former postal administrator’s remuneration and expenses shall comprise all those items set out in paragraph (1) of this Rule.

Section 38 Pre-postal administration costs

Where the postal administrator has made a statement of pre-postal administration costs under Rule 20(2)(k), the postal administrator (where the costs consist of fees charged or expenses incurred by the postal administrator) or other insolvency practitioner (where the costs consist of fees charged or expenses incurred by that practitioner) must, before paying such costs, apply to the court for a determination of whether and to what extent the unpaid pre-postal administration costs are approved for payment.

Section 39 Distribution to creditors generally

(1) This Part applies where the postal administrator makes, or proposes to make, a distribution to any class of creditors other than secured creditors. Where the distribution is to a particular class of creditors, references in this Part to creditors shall, in so far as the context requires, be a reference to that class of creditors only.

(2) The postal administrator shall give notice to the creditors of the postal administrator’s intention to declare and distribute a dividend in accordance with Rule 65.

(3) Where it is intended that the distribution is to be a sole or final dividend, the postal administrator shall, after the date specified in the notice referred to in paragraph (2) of this Rule—

(a) defray any items payable in accordance with the provisions of paragraph 99;

(b) defray any amounts (including any debts or liabilities and the postal administrator’s own remuneration and expenses) which would, if the postal administrator were to cease to be the postal administrator of the company, be payable out of the property of which the postal administrator had custody or control in accordance with the provisions of paragraph 99; and

(c) declare and distribute that dividend without regard to the claim of any person in respect of a debt not already proved.

(4) The court may, on the application of any person, postpone the date specified in the notice.

Section 40 Debts of insolvent company to rank equally

Debts other than preferential debts rank equally between themselves in the postal administration and, after the preferential debts, shall be paid in full unless the assets are insufficient for meeting them, in which case they abate in equal proportions between themselves.

Section 41 Supplementary provisions as to dividend

(1) In the calculation and distribution of a dividend the postal administrator shall make provision for—

(a) any debts which appear to the postal administrator to be due to persons who, by reason of the distance of their place of residence, may not have had sufficient time to tender and establish their proofs;

(b) any debts which are the subject of claims which have not yet been determined; and

(c) disputed proofs and claims.

(2) A creditor who has not proved their debt before the declaration of any dividend is not entitled to disturb, by reason that they have not participated in it, the distribution of that dividend or any other dividend declared before their debt was proved, but—

(a) when they have proved that debt they are entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend or dividends which they have failed to receive; and

(b) any dividends payable under sub-paragraph (a) of this paragraph shall be paid before the money is applied to the payment of any such further dividend.

(3) No action lies against the postal administrator for a dividend; but if the postal administrator refuses to pay a dividend the court may, if it thinks just, order the postal administrator to pay it and also to pay, out of the postal administrator’s own money—

(a) interest on the dividend, at the rate for the time being specified in section 17 of the Judgments Act 1838 , from the time when it was withheld; and

(b) the costs of the proceedings in which the order to pay is made.

Section 42 Division of unsold assets

(1) The postal administrator may, with the permission of the creditors, divide in its existing form amongst the company’s creditors, according to its estimated value, any property which from its peculiar nature or other special circumstances cannot be readily or advantageously sold.

(2) The postal administrator must—

(a) in the receipts and payments account included in the final progress report under Part 9 of the Rules, state the estimated value of the property divided amongst the creditors of the company during the period to which the report relates, and

(b) as a note to the account, provide details of the basis of the valuation.

Section 43 Proving a debt

(1) A person claiming to be a creditor of the company and wishing to recover their debt in whole or in part must (subject to any order of the court to the contrary) submit their claim in writing to the postal administrator.

(2) A creditor who claims is referred to as “ proving ” for their debt and a document by which they seek to establish their claim is their “proof”.

(3) Subject to the next paragraph, a proof must—

(a) be made out by, or under the direction of, the creditor and authenticated by them or a person authorised in that behalf; and

(b) state the following matters—

(i) the creditor’s name and address;

(ii) if the creditor is a company, its registered number;

(iii) the total amount of the creditor’s claim (including value added tax) as at the date on which the company entered postal administration less any payments made after that date in respect of the claim, any deduction under Rule 54 and any adjustment by way of set-off in accordance with Rule 55;

(iv) whether or not the claim includes outstanding uncapitalised interest;

(v) particulars of how and when the debt was incurred by the company;

(vi) particulars of any security held, the date on which it was given and the value which the creditor puts on it;

(vii) details of any reservation of title in respect of goods to which the debt refers; and

(viii) the name, address and authority of the person authenticating the proof (if other than the creditor themselves).

(4) There shall be specified in the proof details of any documents by reference to which the debt can be substantiated; but (subject as follows) it is not essential that such document be attached to the proof or submitted with it.

(5) The postal administrator may call for any document or other evidence to be produced to the postal administrator, where the postal administrator thinks it necessary for the purpose of substantiating the whole or any part of the claim made in the proof.

Section 44 Costs of proving

Unless the court otherwise orders—

(a) every creditor bears the cost of proving their own debt, including costs incurred in providing documents or evidence under Rule 43(5); and

(b) costs incurred by the postal administrator in estimating the quantum of a debt under Rule 51 are payable out of the assets as an expense of the postal administration.

Section 45 Postal administrator to allow inspection of proofs

The postal administrator shall, so long as proofs lodged with the postal administrator are in the postal administrator’s hands, allow them to be inspected, at all reasonable times on any business day, by any of the following persons—

(a) any creditor who has submitted a proof of debt (unless their proof has been wholly rejected for purposes of dividend or otherwise);

(b) any contributory of the company; and

(c) any person acting on behalf of either of the above.

Section 46 New postal administrator appointed

(1) If a new postal administrator is appointed in place of another, the former postal administrator must as soon as reasonably practicable transmit to the new postal administrator all proofs which the former postal administrator has received, together with an itemised list of them.

(2) The new postal administrator shall authenticate the list by way of receipt for the proofs, and return it to the new postal administrator’s predecessor.

(3) From then on, all proofs of debt must be sent to and retained by the new postal administrator.

Section 47 Admission and rejection of proofs for dividend

(1) A proof may be admitted for dividend either for the whole amount claimed by the creditor, or for part of that amount.

(2) If the postal administrator rejects a proof in whole or in part, the postal administrator shall prepare a written statement of their reasons for doing so, and send it as soon as reasonably practicable to the creditor.

Section 48 Appeal against decision on proof

(1) If a creditor is dissatisfied with the postal administrator’s decision with respect to their proof (including any decision on the question of preference), the creditor may apply to the court for the decision to be reversed or varied. The application must be made within 21 days of the creditor receiving the statement sent under Rule 47(2).

(2) A member or any other creditor may, if dissatisfied with the postal administrator’s decision admitting or rejecting the whole or any part of a proof, make such an application within 21 days of becoming aware of the postal administrator’s decision.

(3) Where application is made to the court under this Rule, the court shall fix a venue for the application to be heard, notice of which shall be sent by the applicant to the creditor who lodged the proof in question (if it is not themselves) and the postal administrator.

(4) The postal administrator shall, on receipt of the notice, file with the court the relevant proof, together (if appropriate) with a copy of the statement sent under Rule 47(2).

(5) Where the application is made by a member, the court must not disallow the proof (in whole or in part) unless the member shows that there is (or would be but for the amount claimed in the proof), or that it is likely that there will be (or would be but for the amount claimed in the proof), a surplus of assets to which the company would be entitled.

(6) After the application has been heard and determined, the proof shall, unless it has been wholly disallowed, be returned by the court to the postal administrator.

(7) The postal administrator is not personally liable for costs incurred by any person in respect of an application under this Rule unless the court otherwise orders.

Section 49 Withdrawal or variation of proof

A creditor’s proof may at any time, by agreement between themselves and the postal administrator, be withdrawn or varied as to the amount claimed.

Section 50 Expunging of proof by the court

(1) The court may expunge a proof or reduce the amount claimed—

(a) on the postal administrator’s application, where the postal administrator thinks that the proof has been improperly admitted, or ought to be reduced; or

(b) on the application of a creditor, if the postal administrator declines to interfere in the matter.

(2) Where application is made to the court under this Rule, the court shall fix a venue for the application to be heard, notice of which shall be sent by the applicant—

(a) in the case of an application by the postal administrator, to the creditor who made the proof; and

(b) in the case of an application by a creditor, to the postal administrator and to the creditor who made the proof (if not themselves).