50. Charging Orders, Stop Orders, etc.
order 50
Charging Orders, Stop Orders, etc
1. (There is no rule 1). (O. 50 r. 1)
2. Order imposing charge on securities. (O. 50 r. 2)
(1) The Court may for the purpose of enforcing a judgment or order for the payment of an ascertained sum of money to a person by order in Form 104 impose on any interest to which the judgment debtor is beneficially entitled in such of the securities to which this rule applies as may be specified in the order a charge for securing payment of the amount due under the judgment or order and interest thereon.
(2) Any such order shall in the first instance be an order to show cause, in Form 105 specifying the time and place for further consideration of the matter and imposing the charge until that time in any event.
(3) The securities to which this rule applies are–
(a) any government stock, and any stock of any company registered under any written law, including any such stock standing in the name of the Accountant-General; and
(b) any dividend of or interest payable on such stock.
(4) In this Order "government stock" means any stock issued by the Government or any funds of or annuity granted by the Government, and "stock" includes shares, debentures and debenture stock.
3. Application for order under rule 2. (O. 50 r. 2)
An application for an order under rule 2 must be made ex parte by summons supported by an affidavit–
(a) identifying the judgment or order to be enforced, stating the amount unpaid under it at the date of the application, and showing that the applicant is entitled to enforce the judgment or order;
(b) specifying the securities on the judgment debtor’s interest in which it is sought to impose a charge and in whose name they stand;
(c) stating that to the best of the information or belief of the deponent the judgment debtor is beneficially entitled to an interest in the securities in question, describing that interest, and stating the sources of the deponent’s information or the grounds for his belief.
4. Service of notice of order to show cause. (O. 50 r. 4)
(1) Unless the Court otherwise directs, a copy of the order under rule 2 to show cause must, at least 7 days before the time appointed thereby for the further consideration of the matter, be served on the judgment debtor, and if he does not attend on such consideration proof of service must be given.
(2) Notice of the making of the order to show cause, with a copy of that order, must as soon as practicable after the making of the order be served–
(a) where the order relates to government stock, on the Accountant-General;
(b) where the order relates to other stock, on the company concerned;
(c) where the order relates to stock standing in the name of the Accountant-General, on the Accountant-General.
5. Effect of order to show cause. (O. 50 r. 5)
(1) No disposition by the judgment debtor of his interest in any securities to which an order under rule 2 to show cause relates made after the making of that order shall, so long as that order remains in force, be valid as against the judgment creditor.
(2) Until such order is discharged or made absolute the Accountant-General or, as the case may be, a company shall not permit any transfer of any such stock as is specified in the order, or pay to any person any dividend thereof, or interest payable thereon, except with the authority of the Court.
(3) If after notice of the making of such order is served on the Accountant-General or a company the Accountant-General or company permits any transfer or makes any payment prohibited by paragraph (2), it shall be liable to pay the judgment creditor the value of the stock transferred or, as the case may be, the amount of the payment made or, if that value or amount is more than sufficient to satisfy the judgment or order to which such order relates, so much thereof as is sufficient to satisfy it.
6. Making and effect of charging order absolute. (O. 50 r. 6)
(1) On the further consideration of the matter the Court shall, unless it appears that there is sufficient cause to the contrary, make the order absolute with or without modifications.
(2) Where on the further consideration of the matter it appears to the Court that the order should not be made absolute it shall discharge the order
(3) A charge imposed by an order under rule 2 made absolute under this rule shall have the same effect, and the judgment creditor in whose favour it is made shall, subject to paragraph (4), have the same remedies for enforcing it, as if it were a valid charge effectively made by the judgment debtor.
(4) No proceedings to enforce a charge imposed by an order made absolute under this rule shall be taken until after the expiration of 6 months from the date of the order to show cause.
7. Discharge, etc., of charging order. (O. 50 r. 7)
The Court, on the application of the judgment debtor or any other person interested in the securities to which an order under rule 2 relates, may at any time, whether before or after the order is made absolute, discharge or vary the order on such terms (if any) as to costs as it thinks just.
8. Money in Court: Charging order. (O. 50 r. 8)
(1) The Court may for the purpose of enforcing a judgment or order for the payment of an ascertained sum of money to a person by order impose on any interest to which the judgment debtor is beneficially entitled to any money in Court identified in the order a charge for securing payment of the amount due under the judgment or order and interest thereon.
(2) Any such order shall in the first instance be an order to show cause, specifying the time and place for the further consideration of the matter and imposing the charge until that time in any event.
(3) Rules 3 and 4(1) shall, with the necessary modifications, apply in relation of an application for an order under this rule and to the order as they apply in relation to an application for an order under rule 2 and to such order.
(4) Notice of the making of an order under this rule to show cause, with a copy of that order, must, as soon as practicable after the making of the order, be served on the Accountant-General.
(5) Rules 5(1), 6(1) and (2) and 7 shall, with the necessary modifications, apply in relation to an order under this rule as they apply in relation to an order under rule 2.
9. Registrar. etc., may grant injunction ancillary to charging order. (O. 50 r. 9)
The Registrar shall have power–
(a) to appoint a receiver to enforce a charge imposed by an order under rule 1; or
(b) to grant an injunction if, and only so far as, it is ancillary or incidental to an order under rule 1, 2 or 8.
and an application for the appointment of a receiver or an injunction under this rule may be joined with the application for the order under rule 2 or 8 to which it relates.
10. Securities not in Court: Stop notice. (O. 50 r. 10)
(1) Any person claiming to be beneficially entitled to an interest in any securities to which rule 2 applies, other than securities in Court, who wishes to be notified of any proposed transfer of payment of those securities may avail himself of the provisions of this rule.
(2) A person claiming to be so entitled must file in the Registry–
(a) an affidavit identifying the securities in question and describing his interest therein by reference to the document under which it arises; and
(b) a notice in Form 106 signed by the deponent to the affidavit, and annexed to it, addressed to the Accountant-General or, as the case may be, the company concerned,
and must serve an office copy of the affidavit, and a copy of the notice sealed with the seal of the High Court, on the Accountant-General or that company.
(3) There must be indorsed on the affidavit filed under this rule a notice stating the address to which any such notice as is referred to in rule 11(1) is to be sent and, subject to paragraph (4), that address shall for the purpose of that rule be the address for service of the person on whose behalf the affidavit is filed.
(4) A person on whose behalf an affidavit under this rule is filed may change his address for service for the purpose of rule 11 by serving on the Accountant-General or, as the case may be, the company concerned, a notice to that effect, and as from the date of service of such a notice the address stated therein shall for the purpose of that rule be the address for service of that person.
11. Effect of stop notice. (O. 50 r. 11)
(1) Where a notice under rule 10 has been served on the Accountant-General or a company, then, so long as the notice is in force, the Accountant-General or company shall not register a transfer of any stock or make a payment of any dividend or interest, being a transfer or payment restrained by the notice, without serving on the person on whose behalf the notice was filed at his address for service a notice informing him of the request for such transfer or payment.
(2) Where the Accountant-General or a company receive a request for such a transfer or payment as is mentioned in paragraph (1) made by or on behalf of the holder of the securities to which the notice under rule 10 relates, the Accountant-General or company shall not by reason only of that notice refuse to register the transfer or make the payment for longer than 8 days after receipt of the request except under the authority of an order of the Court.
12. Amendment of stop notice. (O. 50 r. 12)
If any securities are incorrectly described in a notice filed under rule 10 the person on whose behalf the notice was filed may file in the Registry an amended notice and serve on the Accountant-General or, as the case may be, the company concerned a copy of that notice sealed with the seal of the High Court, and where he does so the notice under rule 10 shall be deemed to have been served on the Accountant-General or company on the day on which the copy of the amended notice was served on it.
13. Withdrawal, etc., of stop notice. (O. 50 r. 13)
(1) The person on whose behalf a notice under rule 10 was filed may withdraw it by serving a request for its withdrawal on the Accountant-General or, as the case may be, the company on whom the notice was served.
(2) Such request must be signed by the person on whose behalf the notice was filed and his signature must be witnessed by a practising solicitor.
(3) The Court, on the application of any person claiming to be beneficially entitled to an interest in the securities to which a notice under rule 10 relates, may by order discharge the notice.
(4) An application for an order under paragraph (3) must be made by originating summons, and the summons must be served on the person on whose behalf the notice under rule 10 was filed.
No appearance need be entered to the summons.
14. Order prohibiting transfer. etc., of securities. (O. 50 r. 14)
(1) The Court, on the application of any person claiming to be beneficially entitled to an interest in any government stock or any stock of any company registered under any written law, may by order in Form 107 prohibit the Accountant-General or, as the case may be, that company from registering any transfer of such part of that stock as may be specified in the order or from paying any dividend thereof or interest thereon.
The name of the holder of the stock to which the order relates shall be stated in the order.
(2) An application for an order under this rule must be made by summons.
(3) The Court, on the application of any person claiming to be entitled to an interest in any stock to which an order under this rule relates, may vary or discharge the order on such terms (if any) as to costs as it thinks fit.
order 50
Charging Orders, Stop Orders, etc
1. (There is no rule 1). (O. 50 r. 1)
2. Order imposing charge on securities. (O. 50 r. 2)
(1) The Court may for the purpose of enforcing a judgment or order for the payment of an ascertained sum of money to a person by order in Form 104 impose on any interest to which the judgment debtor is beneficially entitled in such of the securities to which this rule applies as may be specified in the order a charge for securing payment of the amount due under the judgment or order and interest thereon.
(2) Any such order shall in the first instance be an order to show cause, in Form 105 specifying the time and place for further consideration of the matter and imposing the charge until that time in any event.
(3) The securities to which this rule applies are–
(a) any government stock, and any stock of any company registered under any written law, including any such stock standing in the name of the Accountant-General; and
(b) any dividend of or interest payable on such stock.
(4) In this Order "government stock" means any stock issued by the Government or any funds of or annuity granted by the Government, and "stock" includes shares, debentures and debenture stock.
3. Application for order under rule 2. (O. 50 r. 2)
An application for an order under rule 2 must be made ex parte by summons supported by an affidavit–
(a) identifying the judgment or order to be enforced, stating the amount unpaid under it at the date of the application, and showing that the applicant is entitled to enforce the judgment or order;
(b) specifying the securities on the judgment debtor’s interest in which it is sought to impose a charge and in whose name they stand;
(c) stating that to the best of the information or belief of the deponent the judgment debtor is beneficially entitled to an interest in the securities in question, describing that interest, and stating the sources of the deponent’s information or the grounds for his belief.
4. Service of notice of order to show cause. (O. 50 r. 4)
(1) Unless the Court otherwise directs, a copy of the order under rule 2 to show cause must, at least 7 days before the time appointed thereby for the further consideration of the matter, be served on the judgment debtor, and if he does not attend on such consideration proof of service must be given.
(2) Notice of the making of the order to show cause, with a copy of that order, must as soon as practicable after the making of the order be served–
(a) where the order relates to government stock, on the Accountant-General;
(b) where the order relates to other stock, on the company concerned;
(c) where the order relates to stock standing in the name of the Accountant-General, on the Accountant-General.
5. Effect of order to show cause. (O. 50 r. 5)
(1) No disposition by the judgment debtor of his interest in any securities to which an order under rule 2 to show cause relates made after the making of that order shall, so long as that order remains in force, be valid as against the judgment creditor.
(2) Until such order is discharged or made absolute the Accountant-General or, as the case may be, a company shall not permit any transfer of any such stock as is specified in the order, or pay to any person any dividend thereof, or interest payable thereon, except with the authority of the Court.
(3) If after notice of the making of such order is served on the Accountant-General or a company the Accountant-General or company permits any transfer or makes any payment prohibited by paragraph (2), it shall be liable to pay the judgment creditor the value of the stock transferred or, as the case may be, the amount of the payment made or, if that value or amount is more than sufficient to satisfy the judgment or order to which such order relates, so much thereof as is sufficient to satisfy it.
6. Making and effect of charging order absolute. (O. 50 r. 6)
(1) On the further consideration of the matter the Court shall, unless it appears that there is sufficient cause to the contrary, make the order absolute with or without modifications.
(2) Where on the further consideration of the matter it appears to the Court that the order should not be made absolute it shall discharge the order
(3) A charge imposed by an order under rule 2 made absolute under this rule shall have the same effect, and the judgment creditor in whose favour it is made shall, subject to paragraph (4), have the same remedies for enforcing it, as if it were a valid charge effectively made by the judgment debtor.
(4) No proceedings to enforce a charge imposed by an order made absolute under this rule shall be taken until after the expiration of 6 months from the date of the order to show cause.
7. Discharge, etc., of charging order. (O. 50 r. 7)
The Court, on the application of the judgment debtor or any other person interested in the securities to which an order under rule 2 relates, may at any time, whether before or after the order is made absolute, discharge or vary the order on such terms (if any) as to costs as it thinks just.
8. Money in Court: Charging order. (O. 50 r. 8)
(1) The Court may for the purpose of enforcing a judgment or order for the payment of an ascertained sum of money to a person by order impose on any interest to which the judgment debtor is beneficially entitled to any money in Court identified in the order a charge for securing payment of the amount due under the judgment or order and interest thereon.
(2) Any such order shall in the first instance be an order to show cause, specifying the time and place for the further consideration of the matter and imposing the charge until that time in any event.
(3) Rules 3 and 4(1) shall, with the necessary modifications, apply in relation of an application for an order under this rule and to the order as they apply in relation to an application for an order under rule 2 and to such order.
(4) Notice of the making of an order under this rule to show cause, with a copy of that order, must, as soon as practicable after the making of the order, be served on the Accountant-General.
(5) Rules 5(1), 6(1) and (2) and 7 shall, with the necessary modifications, apply in relation to an order under this rule as they apply in relation to an order under rule 2.
9. Registrar. etc., may grant injunction ancillary to charging order. (O. 50 r. 9)
The Registrar shall have power–
(a) to appoint a receiver to enforce a charge imposed by an order under rule 1; or
(b) to grant an injunction if, and only so far as, it is ancillary or incidental to an order under rule 1, 2 or 8.
and an application for the appointment of a receiver or an injunction under this rule may be joined with the application for the order under rule 2 or 8 to which it relates.
10. Securities not in Court: Stop notice. (O. 50 r. 10)
(1) Any person claiming to be beneficially entitled to an interest in any securities to which rule 2 applies, other than securities in Court, who wishes to be notified of any proposed transfer of payment of those securities may avail himself of the provisions of this rule.
(2) A person claiming to be so entitled must file in the Registry–
(a) an affidavit identifying the securities in question and describing his interest therein by reference to the document under which it arises; and
(b) a notice in Form 106 signed by the deponent to the affidavit, and annexed to it, addressed to the Accountant-General or, as the case may be, the company concerned,
and must serve an office copy of the affidavit, and a copy of the notice sealed with the seal of the High Court, on the Accountant-General or that company.
(3) There must be indorsed on the affidavit filed under this rule a notice stating the address to which any such notice as is referred to in rule 11(1) is to be sent and, subject to paragraph (4), that address shall for the purpose of that rule be the address for service of the person on whose behalf the affidavit is filed.
(4) A person on whose behalf an affidavit under this rule is filed may change his address for service for the purpose of rule 11 by serving on the Accountant-General or, as the case may be, the company concerned, a notice to that effect, and as from the date of service of such a notice the address stated therein shall for the purpose of that rule be the address for service of that person.
11. Effect of stop notice. (O. 50 r. 11)
(1) Where a notice under rule 10 has been served on the Accountant-General or a company, then, so long as the notice is in force, the Accountant-General or company shall not register a transfer of any stock or make a payment of any dividend or interest, being a transfer or payment restrained by the notice, without serving on the person on whose behalf the notice was filed at his address for service a notice informing him of the request for such transfer or payment.
(2) Where the Accountant-General or a company receive a request for such a transfer or payment as is mentioned in paragraph (1) made by or on behalf of the holder of the securities to which the notice under rule 10 relates, the Accountant-General or company shall not by reason only of that notice refuse to register the transfer or make the payment for longer than 8 days after receipt of the request except under the authority of an order of the Court.
12. Amendment of stop notice. (O. 50 r. 12)
If any securities are incorrectly described in a notice filed under rule 10 the person on whose behalf the notice was filed may file in the Registry an amended notice and serve on the Accountant-General or, as the case may be, the company concerned a copy of that notice sealed with the seal of the High Court, and where he does so the notice under rule 10 shall be deemed to have been served on the Accountant-General or company on the day on which the copy of the amended notice was served on it.
13. Withdrawal, etc., of stop notice. (O. 50 r. 13)
(1) The person on whose behalf a notice under rule 10 was filed may withdraw it by serving a request for its withdrawal on the Accountant-General or, as the case may be, the company on whom the notice was served.
(2) Such request must be signed by the person on whose behalf the notice was filed and his signature must be witnessed by a practising solicitor.
(3) The Court, on the application of any person claiming to be beneficially entitled to an interest in the securities to which a notice under rule 10 relates, may by order discharge the notice.
(4) An application for an order under paragraph (3) must be made by originating summons, and the summons must be served on the person on whose behalf the notice under rule 10 was filed.
No appearance need be entered to the summons.
14. Order prohibiting transfer. etc., of securities. (O. 50 r. 14)
(1) The Court, on the application of any person claiming to be beneficially entitled to an interest in any government stock or any stock of any company registered under any written law, may by order in Form 107 prohibit the Accountant-General or, as the case may be, that company from registering any transfer of such part of that stock as may be specified in the order or from paying any dividend thereof or interest thereon.
The name of the holder of the stock to which the order relates shall be stated in the order.
(2) An application for an order under this rule must be made by summons.
(3) The Court, on the application of any person claiming to be entitled to an interest in any stock to which an order under this rule relates, may vary or discharge the order on such terms (if any) as to costs as it thinks fit.
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