Bailey v Dargue

An insolvency appeal from a county court lies to a judge of the High Court under the special insolvency appeal regime. The restrictions in paragraph 8.13 of the Practice Direction to CPR Part 52 do not apply to such an appeal. A Specialist Chancery Circuit Judge authorised under section 9 of the Supreme Court Act 1981 is, while acting under that section, to be treated as a judge of the High Court and has jurisdiction to hear the appeal.

The debtor appealed to the High Court from a bankruptcy order made by a Deputy District Judge in the Carlisle County Court on 17 July 2008. Permission to appeal had been granted by a High Court judge, with the appeal directed to be heard by one of two Specialist Chancery Circuit Judges.

The appellant initially challenged the jurisdiction of a Specialist Chancery Circuit Judge to hear the appeal, relying on paragraph 8.13 of the Practice Direction to CPR Part 52. The central issue was whether that restriction applied to an insolvency appeal governed by the special statutory and procedural regime.

1. Jurisdiction established. The court ruled that it had jurisdiction to hear the appeal.
2. Rule 2.1 of the Civil Procedure Rules makes the rules generally applicable to proceedings in the county courts and High Court, but excludes proceedings for which rules may be made under specified enactments, including insolvency proceedings under sections 411 and 412 of the Insolvency Act 1986.
3. CPR 52.1(4) makes Part 52 subject to special provisions governing particular categories of appeal. The Insolvency Proceedings Practice Direction provides that an appeal from a county court decision in insolvency proceedings lies to a judge of the High Court under section 375(2) of the Insolvency Act 1986 and the relevant provisions of the Insolvency Rules 1986.
4. The procedure for a first insolvency appeal is governed by Insolvency Rule 7.49, which imports the Court of Appeal procedure, subject to the Act, the Insolvency Rules and the Insolvency Proceedings Practice Direction. Only specified paragraphs of the Practice Direction to CPR Part 52 apply to first appeals. Paragraph 8.13(1), including its restriction to certain section 9 judges, is not among them.
5. The appeal therefore lies to a judge of the High Court without the restriction in paragraph 8.13(1). The judge was authorised under section 9(1) of the Supreme Court Act 1981 to sit as a High Court judge. Under section 9(5), a person acting under section 9 is to be treated for all purposes as a judge of the court in which he is acting and may perform its functions.
6. The conclusion was reinforced by the legislative and procedural scheme. A section 9 judge may hear an appeal from a High Court Master or district judge under paragraph 8.14, and there was no comparable justification for restricting such a judge when hearing an insolvency appeal from a county court District Judge.
7. The jurisdictional objection was rejected and the appeal was permitted to proceed before the Specialist Chancery Circuit Judge.

• High Court (Chancery Division): The jurisdictional objection was rejected. The court held that it had jurisdiction to hear the insolvency appeal.
• Carlisle County Court: On 17 July 2008, a Deputy District Judge adjudged the debtor bankrupt.