The case confirmed that the provisions of the CPR apply to applications for an extension of time to apply for rescission of a winding up order. The case further stated that any such extensions of time should be exceptional and for a very short period.
Cre8atsea Ltd was wound up by the court in March 2013 in respect of a petition originally presented in November 2011. The Applicant was a former director who claimed the status of a creditor and applied to rescind a winding up order under r 7.47 of the Insolvency Rules 1986 (IR 1986) some two years after it was made. It was found that the Applicant was not a creditor and therefore had no standing to make the application. However, the court went on to consider, if the Applicant did have standing, whether the application would have been granted.
The court found that IR 1986 require an application for rescission to be made within ﬁve business days of the order – a time limit which is deliberately very short. The court also found that CPR 3.9 (which deals with relief from sanctions), applied given that: refusal to extend time to apply to rescind the winding up order would result in the order continuing, which would eﬀectively amount to a sanction; and ––the application to extend time was the ﬁrst step in initiating litigation.
In applying CPR 3.9 the court found that the requirements were not met given the length of the delay and the lack of supporting evidence justifying such delay.