BANKRUPTCY ACT: SUBSIDIARY LEGISLATION(CHAPTER 82 )

CHAPTER 82 - BANKRUPTCY ACT: SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

BANKRUPTCY (COSTS) RULES

[Section 121]

[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]

Arrangement of Rules

Rules

1. Title and application

2. Bankruptcy scale of costs

SCHEDULE

SI 178 of 1990,

Act 13 of 1994.

1. Title and application

(1) These Rules may be cited as the Bankruptcy (Costs) Rules.

(2) These Rules shall apply in respect of any business done in any matter pending on the date of these Rules or duties performed after the publication of these Rules.

2. Bankruptcy scale of costs

Where in respect of any business done or duties performed under the Act, costs are to be allowed or taxed, such costs shall be in accordance with the scale of costs set out in the Schedule to these Rules.

SCHEDULE

[Rule 2]

PART I
SCALE OF COSTS OF PETITIONING DEBTOR

Fee units

1. Instructions for petition, search for prior petition drawing and copy petition and attesting same; attending, presentation hearing thereof when receiving order made; drawing and copy receiving order; attending Official Receiver giving him all necessary information; attending upon debtor’s preliminary examination and upon public examination; drawing bill of costs and copy; attending lodging bill, obtaining appointment to tax and necessary notices thereof; attending taxation, vouching, completing and obtaining Taxing Officer’s allocatur; letters, messengers and telephone calls—

(a) Where the assets are certified as not likely to exceed K5,000

188

(b) Where the assets are certified as likely to exceed K5,000

1,875

NOTE:-The allowances for Item 1 (a) or 1 (b) to be made in accordance with the certificate or the Official Receiver as to the value which the assets are likely to realise, and the certificate must be produced to the Taxing Officer where a composition is accepted and confirmed by the court the value of the assets shall be considered to be the amount required for the purpose of the composition.

2. Drawing and copy of adjudication upon application by a debtor

3. Where the advocate practises at a distance from the court and employs an agent upon presentation and hearing of the petition, an additional allowance may be made for

General Note to Part I

No charges other than those included in Part I of this scale may be allowed unless the Taxing Officer considered that by reason of special circumstances additional items should be allowed.

PART II
DEBTOR’S COSTS WHERE BANKRUPTCY NOTICE SET ASIDE AND ON DISMISSAL OF PETITION

Fee units

4. Instructions for application to set aside bankruptcy notice and for affidavit or counter-claim, including perusal and consideration of the bankruptcy notice; drawing affidavit, copy and attending to file; drawing application for appointment to hear (when requisite) and attending obtaining 1,250 directions thereon

270

5. (a) Attending court on hearing of application when order made setting aside bankruptcy notice; drawing any attending to pass

(b) Attending court when hearing of application adjourned; drawing and copy order and attending to pass

6. Instructions to show cause on hearing of petition including perusing and considering petition and attending upon the debtor obtaining information; drawing and copy notices to show cause and attending to file; two fair copies notice and service thereof.

135 to 270

7. (a) Attending court on hearing of petition dismissed

38 to 135

(b) Attending court on hearing of petition adjourned

38 to 135

8. Drawing and copy order and attending to pass

9. Letters, messengers and telephone calls not otherwise provided for-not to exceed

10. In any special case, costs may, at the discretion of the Taxing Officer be allowed—

(a) in relation to items not mentioned in this scale;

(b) of an amount higher than that prescribed by this scale.

General Note to Part II

The debtor shall be allowed his travelling expenses and of paragraph 16 of Part V of this scale.

PART III
SCALE OF COSTS OF PETITIONING CREDITORS

{mprestriction ids="2,3,5"}

Fee units

11. Instructions for bankruptcy notice, drawing same, engrossing and tow fair copier; preparing request to issue, filing, sealing and issuing notice

150

12. Drawing and engrossing affidavit of service of bankruptcy notice, marking exhibit attending

13. Instructions for bankruptcy petition including where necessary examining particulars of petitioning creditors account

75 to 180

NOTE: Where the act of bankruptcy is other than non compliance with a bankruptcy notice, items for work necessarily and properly done in proof thereof, may be allowed at the discretion of the Taxing Master.

14. Drawing bankruptcy petition, engrossing same, two copies and attesting signatures of the petitioning creditors

15. Drawing and engrossing affidavit verifying petition, marking exhibit and attending petitioner to be sworn

16. Attending to search for prior petition and for compliance with bankruptcy notice; affidavit of search, including drawing, engrossing and attending swearing

17. Attending Official Receiver with deposit; attending presentating petition and drawing order for hearing same, attending to filing all affidavits

135

18. Drawing and engrossing affidavit of service of petition marking exhibit, attending swearing and filing same

19. Drawing and engrossing affidavit of petitioning Creditors’ debt and attending swearing and filing same

20. Attending hearing of petition when receiving order made; drawing receiving order copy and attending to pass

105

21. Attending Official Receiver upon making of receiving order giving him all necessary information

22. Attending hearing of petition when adjournment order drawing order or adjournment and copy of file

NOTE-More than one attendance on the hearing of a bankruptcy petition shall not be allowed unless certified by the court at the time.

23. Drawing bill of costs and copy for taxation; attending lodging bill, obtaining appointment to tax and necessary thereof; attending taxation, vouching, completing and obtaining Taxing Officer’s allocatur

188

24. Where the advocate practises at a distance from the court and employs an agent upon presentation and hearing of the petition, an additional allowance may be made not exceeding

NOTE:-Travelling expenses, not exceeding this sum may otherwise be allowed.

25. For service of a bankruptcy notice of petition, an allowance shall be made in accordance with the provisions of Part IV of this scale.

26. Letters, messengers and telephone calls not otherwise provided for-not to exceed

General Notes of Part III

1. No charges other than those included in Part III of this scale may be allowed unless the Taxing Master considers that by reason of the petition being opposed or other circumstances, additional items should be allowed.

2. The petition creditor’s advocate may be allowed all proper charges at the rate specified in the scale—

(a) for work necessarily and usefully done between the presentation of the petition and the date of receiving order in the interest of the creditors generally and for the protection or benefit of the estate; and

(b) in exceptional cases for special services rendered prior to the presentation of the petition in the interest of the creditor generally where the services have been of substantial advantage to the estate; if the Official Receiver certified that the work was necessary or useful, or, as the case may be, that the special services were of substantial advantage. The Official Receiver’s certificate may be endorsed at the foot of the bill of costs.

PART IV
MISCELLANEOUS AND GENERAL COSTS

Instructions

Fee units

27. For application for appointment of special manager and drawing same; obtaining assets of creditors; attending Official Receiver to lodge papers and to make application

150

NOTE: No costs shall be allowed in respect of an unsuccessful application unless the Official Receiver certificates that such costs should be allowed

28. For application for appointment of interim receiver and drawing same; affidavit in support and attending to file; attending hearing of application when order made and drawing order; attending Official Receiver

225

NOTE:

(1) The costs of further affidavits in support may be allowed at the discretion of the Taxing Officer.

(2) The deposit is to be charged in the bill of costs.

29. For application for substantial service and drawing same; affidavit in support, attending making application when order made; attending drawing up order

30. For application to extend or abridge time and drawing same; attending making application when order made; attending drawing up order

31. For application to dispense with petitioning creditor’s attendance on hearing and drawing same; attending making application when order made; attending drawing up order

32. For hearing of any matter not otherwise provided for not to exceed

150

NOTE-This item is intended to cover the doing of any work, not otherwise provided for, necessarily or properly done in preparation for the hearing of any matter.

33. For case for opinion of Counsel

150

Attendances

34. Of petitioning creditor’s solicitor at public examination, where the court certifies that the attendance is necessary

35. Of petitioning creditor’s advocate at first meeting of creditors

NOTE-This item may only be allowed if the Official Receiver certifies in writing that the attendance was necessarily in the interest of the authority of the Official Receiver

36. At meeting of creditors (other than first meeting) when duly authorised and necessary

38 to 150

37. At meeting of committee of inspection when duly authorised and necessary

38 to 150

NOTE: To Items 36 and 37; when such attendance is special and unusually long, these items may be increased at the discretion of the Taxing Officer

38. In chambers on hearing of any application where not otherwise provided for

38 to 225

39. (a) In court on hearing of any matter which is included in list of matters to be heard but on which hearing had not begun, per day

38 to 225

(b) in court on hearing of any matter, per day

38 to 225

40. To lodge and to make application in chambers where not otherwise provided for

41. To lodge and to make application for warrant, warrant of seizure or search warrant

NOTE: To Items 40 and 41; these items include filing of affidavits or other documents in support of application.

42. To instruct officer as to executing of warrant or warrant of seizure

43. On a deponent swearing or advocate or clerk deposing to any affidavit not otherwise provided for

44. To file affidavit or other document, where not otherwise provided for

45. Any other attendance not otherwise provided for (or such greater sum as the Taxing Officer in his discretion shall allow)

46. Commission or order for examination of witness abroad, per page or part thereof

47. Application to a Judge or Registrar, including copy

48. Order made in court or other special order, per page or part thereof

49. Order not otherwise provided for, including copy to file and attending to enter

50. Proposal for scheme of arrangement or composition, per page or part thereof

51. Consent to receiving order and attending obtaining the debtor’s signature

52. Warrant, warrant of seizure or search warrant

53. Any affidavit, notice of motion, report or other document not otherwise provided for, per page or part thereof

54. Any notice not otherwise provided for

55. Brief or case for opinion of Counsel, per page or part thereof

Perusal

56. Of any document not provided for or allowed under any other item, per page or part thereof

57. Copy of document-per page or part thereof

58. Copy of document not otherwise provided for, per page or part thereof

Service

59. Of bankruptcy notice or petition, or other document—

(a) if required to be served personally for each service

(b) if service by post authorised for each service

In addition to the amount allowed under paragraph (a) hereof, a kilometre allowance in respect of each kilometre after the first three kilometres between the place at which service is effected and the nearest place of business of the solicitor effecting it

60. Where more than one attendance is necessary to effect service, or to ground an application for substituted service- not to exceed

Letters

61. Letters not included under any other item

or if long

or if similar

or if a circular letter

62. Letters, messengers and telephone calls not provided for or allowed under any other idea not to exceed

150

PART V
GENERAL

1. Except as in this scale provided all costs properly incurred under the provisions of the Act of these Rules shall be allowed under the Schedule to the Legal Practitioners (Cost) Order.

2. Where, in the course of a bankruptcy administration, business is transacted in a court other than the court having jurisdiction in the bankruptcy, the solicitor’s remuneration therefor shall be in accordance with the scale in force for the time being in the court in which such business is transacted.

3. In respect of business connected with sales, purchases, leases, mortgages and other business, an advocate’s remuneration shall be regulated by any general orders for the time being in force; provided that, in respect of the sale of mortgaged property the remuneration of the trustee’s advocate shall be payable only out of the proceeds of the sale unless the committee of inspection by resolution setting out special reasons, authorises the remuneration to be paid out of the general estate.

4. Where the proceedings are opposed, and in other proper cases, the costs of the employment of Counsel may at the discretion of the Taxing Master, be allowed.

5. Court fees and other proper disbursements shall be allowed in addition to the remuneration provided in this scale.

6. Where the Court so orders and certifies, an extra allowance for length of sitting or other special reasons may be allowed.

7. On taxation, no payment shall be allowed unless the requisite vouchers are produced.

8. Bills of costs shall be written lengthwise distinguishing in separate columns out-of-pocket expenses from charges for work done. Dates shall be given for each item, but they shall not be written in the margin which is to be left clear for use on taxation and for filing.

9. The charge allowed for drawing any affidavit or other document shall include any copy made for the use of the advocate, his agent or for Counsel to settle.

10. Where the same advocate is employed for two or more persons having the same interest, and separate papers are delivered so Counsel or proceedings are taken by or for two or more such persons separately, the Taxing Officer shall consider on the taxation, whether between party and party or on common fund basis, whether such separate papers or proceedings were necessary or proper; and if he is of the opinion that any part of the costs occasioned thereby has been unnecessarily or improperly incurred, that part shall be disallowed.

11. A page means a sheet of A4 size.

12. In special cases where Counsel is not instructed to appear in court and the practitioner acts as advocate, a charge by the practitioner for the preparation of minutes of fact or evidence for his own use may be allowed and in addition such charge for his attendance as the Taxing Officer may think first, having regard to the nature and importance of the case and the questions involved.

13. All fees, costs and allowances which are discretionary shall, unless otherwise provided, be allowed at the discretion of the Taxing Officer, who in the exercise of his discretion shall take into consideration other fees and allowances to Counsel and the advocate in respect of the work to which the allowance applies, the nature and importance of the matter, the amount involved, the interest of the parties, the estate of the bankrupt where the costs are to be paid out of such estate, the general conduct and cost of the proceedings and all other relevant circumstances.

14. (1) Any person who is dissatisfied with the allowance or disallowance by the Taxing Officer of the whole or any part of any times, may at any time within fourteen days after such allowance or disallowance has been made, or within such shorter period as the Taxing Officer may direct, bring before the Taxing Officer objections in writing to the allowance or disallowance setting out in a concise form a list of the items or parts thereof objected to, and grounds for the objections and may thereupon apply to the Taxing Officer to review the taxation. A copy of such objections shall be served upon such persons as the Taxing Officer shall direct.

(2) Any person to whom a copy of the objections is delivered in accordance with the Taxing officer’s directions may within fourteen days after delivery of the copy or such shorter period as may be fixed by the Taxing Officer deliver to the Taxing Officer answers in writing to the objections stating concisely the grounds on which he will oppose them. A copy of such answer shall be served upon such persons as the Taxing Officer shall direct. On the hearing of a review under this paragraph, any person to whom a copy of the objections was delivered shall be entitled to be heard in respect of any item to which the objections relate, notwithstanding that he did not deliver written answers to such objections.

(3) Upon the application to review, the Taxing Officer shall reconsider any allowance or disallowance objected to, and may, if he thinks fit, receive further evidence in respect thereof and if so required by any person interested he shall state either in his certificate of taxation or allocatur or by reference to the objection, the grounds for his decision and any special facts, or circumstances relating therein. A request under this paragraph must be made within fourteen days after the review or such shorter period as may be fixed by the Taxing Officer.

15. (1) Any person who is dissatisfied with the certificate or allocatur of the Taxing Officer as to any item or part of an item, or with the amount allowed in respect of any item which has been reconsidered may, within fourteen days after the date of the certificate or allocatur, or such longer time as the Court or Judge, or Taxing Officer at the time he signs his certificate or allocatur, may allow, apply to the Judge for an order to review the taxation of the items or part thereof, and the Judge may thereupon make such order as he thinks just. An application to the Judge under this paragraph may be made only if any person interested in the proceedings before the Taxing Officer requests such Taxing Officer to state the grounds for his decision in accordance with paragraph 11 (3).

(2) The application shall be heard and determined by the Judge upon the evidence brought before the Taxing Officer and no further evidence shall be received unless the Judge otherwise directs.

(3) Subject to the provisions of this paragraph, the certificate or allocatur of the Taxing Officer shall be final and conclusive as to all matters which have not been objected to in the manner aforesaid.

16. The allowances to witnesses in bankruptcy proceedings shall be in accordance with those ordinarily made in the High Court. The petitioning creditor shall not be regarded as a witness on the hearing of the petition; he shall not be paid for loss of time, but may be allowed his expenses for travelling and subsistence.

[Am by Act 13 of 1994.]

{/mprestriction}

{{{_source.title}}} {{#_source.showPrice}} {{{_source.displayPrice}}} {{/_source.showPrice}}