Insolvency Rules - Calculation of Time Periods
Tuesday, 4th April 2017
Schedule 5 of the new rules provides some clarifications on the calculation of time periods:
1. Days - CPR 2.8(1) applies meaning that a period of time expressed as a number of days means clear days, meaning you do not count the day on which the period begins, and the if the end of the period is defined by reference to an event, the day on which that event occurs.
Example - a bankruptcy petition will not be heard until at least 14 days have elapsed since it was served on the debtor (new rule 10.21). If the hearing is due to take place on 18 March 2017, you do not count either the date of the hearing or the date of service. Therefore, the last date for service is 3 March 2017, leaving 14 clear days between service and the hearing.
2. Months - to calculate a period of time expressed to begin or end in months:
- If the beginning is specified, the month in which the period ends is the specified number of months after, and the date is that corresponding to the date in the month of which it begins, or if there is no such date, the last day of the month.
- If the end of the period is specified, the month in which the time period begins is the specified number of months before the month in which it ends, and the date of the month in which it begins is the date corresponding to the date in the month on which it ends, or the last day of that month.
Example - new rule 18.7(6) stipulates that a Liquidator's progress report in a voluntary winding up must be sent within 2 months of the end of the period covered by the report to Companies House. Assume the period for the report ends on 31 July 2017. To calculate the 2 months, we take 31 July as the specified beginning. Then add the specified number of months after, i.e. 2. So we know the period of time ends in September. The date is the corresponding date, so 31. But there is no 31 in September, so the end of the 2 months is the last date in September, so 30 September 2017. The deadline says "within 2 months", so the last date to send a copy of the progress report is 29 September 2017.
3. The Court's power to extend time - the Court's general powers of management apply so as to enable the court to extend or shorten the time for compliance for anything required or authorised by the new rules, subject to any time limits expressly stated in the Act and to any specific powers to extend or shorten the time for compliance.