Article 9 Administration orders

After Order 39, rule 13, there shall be inserted the following new rule—

“Review by proper officer in default of payment

13A

(1)

Where it appears that the debtor is failing to make payments in accordance with the order, the proper officer shall (either of his own motion or on the application of a creditor whose debt is scheduled to the administration order) send a notice to the debtor—

(a)

informing him of the amounts which are outstanding; and

(b)

requiring him (within 14 days of service of the notice upon him) to

(i)

make the payments as required by the order; or

(ii)

explain his reasons for failing to make the payments; and

(iii)

make a proposal for payment of the amounts outstanding, or

(iv)

make a request to vary the order.

(2)

If the debtor does not comply with paragraph (1)(b) within the time stated, the proper officer shall revoke the administration order.

(3)

The proper officer shall refer a notice given by a debtor under paragraph (1)(b)(ii), (iii) or (iv) to the district judge who may—

(a)

without requiring the attendance of the parties—

(i)

revoke the administration order or vary it so as to provide for payment of the debts included in the order in full or to such extent and within such a period as appears practicable in the circumstances of the case; or

(ii)

suspend the operation of the administration order for such time and on such terms as he thinks fit, or

(b)

require the proper officer to fix a day for the review of the administration order and to give to the debtor and to every creditor whose debt is scheduled to the administration order not less than 8 days' notice of the day so fixed.

(4)

Any party affected by an order made under paragraph (2) or (3)(a) may, within 14 days of service of the order on him and giving his reasons, apply on notice for the district judge to consider the matter afresh and the proper officer shall fix a day for the hearing of the application before the district judge and give to the debtor and to every creditor whose debt is scheduled to the administration order not less than 8 days' notice of the day so fixed.

(5)

On hearing an application under paragraph (4), the district judge may confirm the order or set it aside and make such new order as he thinks fit and the order so made shall be entered in the records of the court.

(6)

In this rule “proper officer” does not include the district judge.”.