Insolvency Act 1986, section 412

Individual insolvency rules (England and Wales)

Part XV Subordinate Legislation

(1)The Lord Chancellor may, with the concurrence of the Secretary of State [F1134and, in the case of rules that affect court procedure, with the concurrence of the Lord Chief JusticeF1134] , make rules for the purpose of giving effect to [F1135Parts 7A to 11F1135] of this Act [F1136or the [F1137 EU RegulationF1137,F1136]] .

(2)Without prejudice to the generality of subsection (1), or to any provision of those Parts by virtue of which rules under this section may be made with respect to any matter, rules under this section may contain—

(a)M36any such provision as is specified in Schedule 9 to this Act or corresponds to provision contained immediately before the appointed day in rules made under section 132 of the Bankruptcy Act 1914; and

(b)such incidental, supplemental and transitional provisions as may appear to the Lord Chancellor necessary or expedient.

[F1138 (2A)For the purposes of subsection (2), a reference in Schedule 9 to this Act to doing anything under or for the purposes of a provision of this Act includes a reference to doing anything under or for the purposes of the [F1139 EU RegulationF1139] (in so far as the provision of this Act relates to a matter to which the [F1139 EU RegulationF1139] applies).

(2B)Rules under this section for the purpose of giving effect to the [F1140 EU RegulationF1140] may not create [F1141 a new relevant offenceF1141] .F1138]

(3)Rules under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(4)Regulations made by the Secretary of State under a power conferred by rules under this section shall be made by statutory instrument and, after being made, shall be laid before each House of Parliament.

(5)Nothing in this section prejudices any power to make rules of court.

[F1142 (6)The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under this section.F1142]

Definitions used in section 412 1

relevant offence

In this Part “relevant offence” means a criminal offence punishable with imprisonment for more than two years or punishable on summary conviction with imprisonment for more than three months or with a fine of more than level 5 on the standard scale (if not calculated on a daily basis) or with a fine of more than £100 a day.

Defined in s.422A · see it in the full Act

Cases considering section 412 11

Poulton v Ministry of Justice

[2009] EWHC 2123 (Ch) · 2 September 2009Interprets

Interprets the rule-making power as wide enough to authorise an actionable duty where that is necessary or appropriate to give practical effect to the insolvency scheme. The issue depends on the statutory purpose and the particular rule, not on a general regulatory classification. (see paras [62]-[73]) Interprets the purpose of making rules to give effect to the Act as sufficiently practical and focused to support duties with remedies where required for efficacy. (see paras [67]-[72]) Confirms the expanded content of the rule-making power and supports the conclusion that actionable duties may be created where required to make the statutory regime effective. (see paras [69]-[73]) Interprets the express power to make rules corresponding to earlier Bankruptcy Rules as authorising re-enactment with the same substantive effect. This reinforced the conclusion that rule 6.13 could preserve the effect of rule 147. (see paras [70], [73], [102]) Interprets the power to make incidental, supplemental and transitional provisions considered necessary or expedient as supporting the creation of actionable duties where appropriate to make the insolvency regime efficacious. (see para [71])

Trustee In Bankruptcy of Louise St John Poulton v Ministry of Justice

[2010] EWCA Civ 392 · 22 April 2010

The provision is used to place the Insolvency Rules within the rule-making framework for giving effect to the substantive personal-insolvency law. (see paras [69]-[70])

Manolete Partners Plc v Hayward And Barrett Holdings Ltd & Ors

[2021] EWHC 1481 (Ch) · 2 June 2021Limits

Section 412 was used with section 411 to explain that the statutory rule-making powers relate only to Parts I to XI, limiting the scope of Rule 1.35. (see para [25])

3 more judgments, and what each says about section 412, are in the case-law panel in the full Act.

Amendments and notes

12 notes from legislation.gov.uk

Amendments

  1. F1134Words in s. 412(1) inserted (3.4.2006) by virtue of Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 189(2); S.I. 2006/1014, art. 2(a), Sch. 1
  2. F1135Words in s. 412(1) substituted (24.2.2009 for certain purposes otherwise 6.4.2009) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 108(3), 148(5), Sch. 20 para. 8; S.I. 2009/382, art. 2
  3. F1136Words in s. 412(1) inserted (3.5.2002) by S.I. 2002/1037, reg. 3(3)
  4. F1137Words in s. 412(1) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 25 (with regs. 3, 4)
  5. F1138S. 412(2A)(2B) inserted (3.5.2002) by S.I. 2002/1037, reg. 3(4)
  6. F1139Words in s. 412(2A) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 25 (with regs. 3, 4)
  7. F1140Words in s. 412(2B) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 25 (with regs. 3, 4)
  8. F1141Words in s. 412(2B) substituted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 38 (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  9. F1142S. 412(6) inserted (3.4.2006) by Constitutional Reform Act 2005 (c. 4), ss. 15(1), 148, Sch. 4 para. 189(3); S.I. 2006/1014, art. 2(a), Sch. 1

Modifications

  1. C1193S. 412 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
  2. C1194S. 412 extended by Financial Services Act 1986 (c. 60, SIF 69), s. 54(6)

Marginal citations

  1. M361914 c. 59.