PART II GENERAL PROCEDURE

5.-(1) The following matters shall be heard in open Court, namely :-

(a) the public examination of debtors;

(b) applications to approve a composition or scheme;

(c) applications for orders of discharge, and applications for certificates under section 27 (4) of the Law;

(d) applications to set aside or avoid any settlement, conveyance, transfer, security, or payment, or to declare for or against the title of the trustee to any property adversely claimed;

(e) applications for the committal of any person to prison for contempt;

(f) applications against the rejection of a proof, or applications to expunge or reduce a proof, where the amount in dispute exceeds one hundred pounds.

(2) Subject to the provisions of the Law, other matters may be heard in chambers or in open Court as the Court may think fit.

6. Where the court has more than one registry, the proceedings shall be taken in the registry within the administrative district in which the debtor has resided or carried on business for the longest period during the six months immediately preceding the presentation of the petition.

7.-(1) Every proceeding in court under the Law shall be entitled as follows:-

In the District Court of
Registry of                                No.        of 19

In Bankruptcy

Re

(Ex parte the debtor, or X.Y., a creditor, or the trustee, or the Official Receiver.)

(2) All applications and orders shall be entitled ex parte the applicant.

8. All notices required by the Law or these rules shall be in writing.

9. All documents lodged with the Registrar shall be typed or written neatly in English. The paper to be used shall be uniform in size with the paper used by the court, that is to say, thirteen inches by eight, or thereabouts. But no objections shall be allowed on the ground of non-compliance with this rule,

10. The record of the proceedings may at all reasonable times be inspected under the supervision of the Registrar by the trustee, the debtor, and any creditor who has proved, or any person authorized by them.

11. All notices and other process issued by the court shall be sealed.

12. Where the Court orders a general meeting of creditors to be summoned under rule 5 of the First Schedule to the Law, it shall be summoned as the Court directs, and in default of any direction by the Court the Registrar shall transmit a sealed copy of the order to the trustee (or, as the case may be, the Official Receiver) ; and the trustee or Official Receiver shall, not less than seven days before such meeting, send by post a copy of the order to each creditor at the address given in his proof, or, when he shall not have proved, at the address given in the list of creditors by the debtor, or such other address as may be known to the trustee or Official Receiver.

13.-(1) When any matter is gazetted or advertised in relation to the proceedings, a copy of the Gazette and of the local papers in which the advertisement was made shall be handed to the Registrar.

(2) The Registrar shall keep the copies with the proceedings, and make and file a memorandum referring to and giving the date of publication.

(3) The Registrar’s memorandum shall be prima facie evidence that the publication to which it refers was duly made in the issue of the Gazette or paper mentioned in it.

(4) Where no paper is published in the administrative district in which the proceedings are being held, the Court may direct the advertisement to be inserted in a paper published at Nicosia.

14.-(1) Where any bankruptcy has been commenced in a wrong Court or in a wrong registry of a Court, the Chief Justice may at any time order the proceedings to be transferred to any other Court having jurisdiction under the Law or to any other registry prescribed by these rules.

(2) The Chief Justice may at any time order the whole or any portion of the proceedings in any matter under the Law to be transferred from any Court to any other Court of competent jurisdiction, or from one registry to another registry of the Court.

15. Where proceedings are transferred, the Official Receiver of the Court or registry to which they are transferred shall become the Official Receiver of the debtor’s estate in the place of the Official Receiver of the Court or registry from which they were transferred.

16. Every application to the Court shall set out the law or rules on which it is based, and be supported by affidavit verifying the facts relied upon. Save where other provision is made, an affidavit shall not be necessary in the case of applications by the Official Receiver.

The application shall be indorsed with an address within the town in which the registry of the Court is situated at which notices to the applicant may be left.

17.-.(1) Saving the Court’s power to dispense with notice, or to order that it shall be given in such other manner as it may think fit, notice of an application shall be given to every party affected thereby by causing a copy of the application showing the day fixed for the hearing and of the affidavit (if any) in support to be delivered to such party, with the qualifications following, namely:-

(a) where it is to be given to the Official Receiver or trustee, the copies shall be served through the Court, and may, in addition to any other mode of service, be delivered to the clerk in charge of his office;

(b) where notice is to be given to a debtor, the copies shall be served on him through the Court;

(c) where it is to be given by the Official Receiver or trustee to the creditors generally, the copies may be sent by post;

(d) where it is to be given to a particular creditor or other person specifically affected by the application, the copies shall be served through the Court.

(2) Where notice of any matter arising out of an application or other proceeding is required to be given by the Registrar, it may be left by one of his officers at the address indorsed (if any) or sent by post to the address known to the Registrar. The officer’s or the Registrar’s certificate in this behalf shall be prima facie evidence of the delivery or posting.

(3) Other notices may be given in the manner provided by sub-rules (1) and (2) of this rule.

18. Save where other provision is made, any party intending to oppose an application shall, two days before the date fixed for the hearing, file with the Registrar notice of his intention setting out the law or rules on which the opposition is based, with an affidavit verifying the facts relied upon in opposition. Such party shall at the same time leave at the applicant’s town address a copy of such notice and of such affidavit.

19. Save where the Law or these rules otherwise provide, where a person is required to give security, such security shall be in the form of a bond with one or more sureties to the person to be secured, or, in lieu thereof, by a deposit in Court with a memorandum setting out the conditions. The amount to be inserted in the bond or to be deposited in Court shall include the probable costs. The bond or the memorandum shall be signed in the presence of the Registrar.

20. Upon application by any person claiming to be a mortgagee of any part of the bankrupt’s immovable property, (of which application notice shall be given to the trustee), the Court shall, where necessary, inquire into the circumstances of the mortgage, and, if satisfied that there ought to be a sale, order a sale to be made for the amount found to be due to such mortgagee.

21. The sale shall be made in accordance with the Rules of Sale for the time being in force under the Civil Procedure Law, Cap. 7, and, unless the Court otherwise directs, the net proceeds of the sale shall be applied in the first place to the payment of the trustee’s costs occasioned by the application, and in the next place to payment of the amount due to the mortgagee for principal, interest, and costs, and the surplus (if any) shall then be paid to the trustee. But where the proceeds are insufficient to satisfy the amount due to the mortgagee, he shall be entitled to prove as a creditor for the deficiency and receive dividends thereon rateably with the other creditors, but so as not to disturb any dividend then already declared.

22. When a debtor is arrested under a warrant issued under section 24 of the Law, he shall be given into the custody of the Governor of the prison mentioned in the warrant, who shall produce such debtor before the Court as it may from time to time direct, and shall safely keep him until such time as the Court shall otherwise order; and any books, papers, moneys, goods, and chattels in the possession of the debtor, which may be seized, shall forthwith be lodged with the Official Receiver or trustee, as the case may be.

23. When a person is apprehended under a warrant issued under section 26 (2) of the Law, he shall be brought before the Court for examination, and if he cannot immediately be examined be shall be delivered to the Governor of the prison mentioned in the warrant, and such Governor shall keep him in custody and produce him before the Court as it may direct. The officer executing the warrant shall immediately inform the Court of the apprehension of the person named in it, and the Court shall fix the earliest practicable day for his examination. The Registrar shall forthwith give notice of the day appointed to the Official Receiver, trustee, or other person who shall have applied for the examination or warrant.

24.-(1) Every application made to the Court for the committal of any person for contempt of Court shall be supported by affidavit.

(2) Notice of such application shall be served personally on the person sought to be committed.

25.-(1) Service (except where the Law or these rules otherwise provide) shall be effected in the same manner as in civil proceedings. But where service in such manner cannot be effected the Court may order service to be made within such time and in such manner as it shall think fit.

(2) Where any document may be sent by post it shall be sent by registered letter.

(3) Where no other time is specified, any document to be served or posted shall be served or posted not less than seven days before the day fixed for the proceeding to which it relates.

26. Where an action is brought against the Official Receiver or the trustee as representing the debtor’s estate, or where either is made a party to a cause or matter on the application of any other party, lie shall not be personally liable for costs unless the Court otherwise orders.

27. Where the Court has not fixed the amount of the costs of any proceeding, these shall be taxed by the Registrar pursuant to the Court’s direction and in accordance with the scale set forth in Appendix B.

(2) In cases of summary administration ordered under section 103 of the Law, a lower scale of advocates’ fees (where certified by the Court) shall be allowed in proceedings under the Law in which costs are payable out of the estate, namely three- fifths of the charges ordinarily allowed, disbursements being added.

28. Before taxing the bill of any person employed by the Official Receiver or trustee, the Registrar shall require a certificate signed by the Official Receiver or trustee setting forth the terms of remuneration agreed to, if any, and, where necessary, as in the case of the bill of costs of an advocate, a copy of the resolution or other authority sanctioning the employment.

29. Where pursuant to section 45 (1) of the Law the Sheriff is required to deliver goods or money to an Official Receiver or trustee, he shall, if he has not already deducted the costs of execution, hand his bill of costs for payment within fourteen days of delivery.

30. All applications for costs incident to a proceeding before the Court shall be made at the time of the proceeding. If not made at such time, no costs shall be allowed except by special order of the Court to be granted only upon the Court being satisfied that application could not have been made at such time.

31. Any person claiming costs against the estate and requiring his bill to be taxed shall give notice thereof to the Official Receiver and the trustee (if any).

32. Saving the power of the Court to order otherwise, the assets remaining after payment of the preliminary expenses prescribed by section 36 of the Law, shall, before any payment is made under section 38 of the Law, be liable to the following payments, which shall be made in the following order of priority, namely :-

(a) the deposit or deposits lodged by the petitioning creditor pursuant to these rules

(b) the deposit or deposits lodged on any application for the appointment of an interim receiver;

(c) the remuneration and charges of the person (if any) appointed to assist the debtor in the preparation of his statement of affairs;

(d) any allowance made to the debtor by the Official Receiver;

(e) the trustee’s necessary disbursements other than actual expenses of realization;

(f) the costs of any person properly employed by the trustee with the sanction of the committee of inspection;

(g) any allowance made to the debtor by the trustee with the sanction of the committee of inspection;

(h) the remuneration of the trustee;

(i) the actual out-of-pocket expenses necessarily incurred by the committee of inspection subject to the approval of the Court; and

(j) any other costs of administration or otherwise allowed by the Court.

33. Where more than one bankruptcy petition is presented against a debtor the costs of any petition other than the first shall not be allowed against the estate unless the Court is satisfied that the estate has benefited thereby.

34. In the case of a bankruptcy petition against a partnership the costs payable out of the estates incurred up to and inclusive of the receiving order shall be apportioned between the joint and separate estates in such proportions as the Official Receiver may in his discretion determine.

35.-(1) Where the joint estate of any co-debtors is in. sufficient to defray any costs or charges properly incurred prior to the appointment of the trustee, the Official Receiver may pay or direct the trustee to pay such costs or charges out of the separate estates of such co-debtors, or one or more of them, in such proportions as in his discretion the Official Receiver may think fit. The Official Receiver may also, as in his discretion he may think fit, pay or direct the trustee to pay any costs or charges properly incurred prior to the appointment of the trustee for any separate estate out of the joint estate or out of any other separate estate, and ally part of the costs or charges of the joint estate incurred prior to the appointment of the trustee which affects any separate estate out of that separate estate.

(2) Where the joint estate of any co-debtors is insufficient to defray any costs or charges properly incurred after the appointment of the trustee, the trustee, with such consent as is hereinafter mentioned, may pay such costs or charges out of the separate estates of such co-debtors or one or more of them. The trustee with the said consent may also pay any costs or charges properly incurred for any separate estate after his appointment out of the joint estate, and any part of the costs or charges of the joint estate incurred after his appointment which affects any separate estate out of that separate estate. No payment under this sub-rule shall be made out of a separate estate or joint estate by a trustee without the consent of the committee of inspection of the estate out of which the payment is intended to be made, or, if such committee withhold or refuse their consent, without an Order of the Court.

36. No appeal shall be brought without the leave of the Court or of the Supreme Court from any decision of the Court involving an amount of less than twenty-five pounds or relating to property appearing from the proceedings to be less than twenty-five pounds in value.