(1)Where the enforcement authority may take proceedings for a recovery order in the High Court, the authority may apply to the court for an interim receiving order (whether before or after starting the proceedings).
(2)An interim receiving order is an order for—
(a)the detention, custody or preservation of property, and
(b)the appointment of an interim receiver.
(3)An application for an interim receiving order may be made without notice if the circumstances are such that notice of the application would prejudice any right of the enforcement authority to obtain a recovery order in respect of any property.
(4)The court may make an interim receiving order on the application if it is satisfied that the conditions in subsections (5) and, where applicable, (6) are met.
(5)The first condition is that there is a good arguable case—
(a)that the property to which the application for the order relates is or includes recoverable property, and
(b)that, if any of it is not recoverable property, it is associated property.
(6)The second condition is that, if—
(a)the property to which the application for the order relates includes property alleged to be associated property, and
(b)the enforcement authority has not established the identity of the person who holds it,
the authority has taken all reasonable steps to do so.
(7)In its application for an interim receiving order, the enforcement authority must nominate a suitably qualified person for appointment as interim receiver, but the nominee may not be a member of the staff of the [F801enforcement authorityF801] .
(8)The extent of the power to make an interim receiving order is not limited by sections 247 to 255.
305.Sections 246 to 255 make provision for ‘interim receiving orders’ in England, Wales and Northern Ireland; equivalent provisions for Scotland are at sections 256 to 265. Under subsection (1) interim receivership procedure may – but need not always – form the preliminary stage of civil recovery procedure.
306.An ‘interim receiving order’ is, as subsection (2) explains, a court order for:
the detention, custody or preservation of property which is claimed to be recoverable property or associated property, and
the appointment of an interim receiver in respect of that property.
307.Under subsection (1), the first step in the procedure is for the Director to make an application to the High Court for an interim receiving order. The Director may do this even though he has not yet issued the claim form. And he may do so without putting any interested party on notice that he is doing so, if giving notice would prejudice the Director’s right to recover the property (subsection (3)). It may be necessary to act swiftly and without alerting potential parties, for example, to prevent property from being concealed or disposed of.
308.The court may make an interim receiving order only if the conditions set out in subsections (5) and (6) are satisfied. The Director must satisfy the court that:
there is a ‘good arguable case’ that the property in question is either recoverable or associated property (the ‘good arguable case’ test is already used by the civil courts for applications for injunctions to freeze disputed property during litigation so that ultimate enforcement of judgment cannot be frustrated. Freezing injunctions were formerly known as ‘Mareva’ injunctions (and this is still the appropriate term for such orders in Northern Ireland)), and
if the property in relation to which the order is sought includes associated property, he has either identified or has taken all reasonable steps to establish the identities of the person(s) holding that property (if the interim receiving order is made or the proceedings otherwise go ahead, the Director will have to put these persons immediately on notice under section 243(2)).
309.The Director must also, under subsection (7), nominate someone suitably qualified to act as interim receiver. But the Director may not nominate a member of his own staff. This is because the interim receiver on appointment becomes an officer of the court and has investigatory duties (see section 247(1) and (2)) and it is thought appropriate that the interim receiver should be independent of the Director, who is a party to the litigation. The characteristics of an interim receiving order are spelled out more fully at sections 247 to 255, but under subsection (8) these sections do not limit the extent of the power to make the order. Subsection (8) has been included to make clear that the High Court retains the inherent discretion which it has in civil litigation to make appropriate orders when making interlocutory injunctions.