Party becomes bankrupt, dies or becomes person with mental disability
231 Party becomes bankrupt, dies or becomes person with mental disability
This rule applies if—
a party to a proceeding becomes bankrupt, or dies, during the proceeding, but a cause of action in the proceeding survives; or
a party to a proceeding becomes a person with a mental disability during the proceeding.
Person with a mental disability is defined in the dictionary.
The proceeding is not suspended and does not end.
However, a person must not take a further step in the proceeding for or against the party unless—
the court gives the person leave to continue the proceeding; and
the person complies with the conditions (if any) of the leave.
Pt 6.2 (Applications in proceedings) applies to an application for leave and an order or directions under this rule.
The court may make any order it considers appropriate about including, removing, substituting or rearranging parties.
However, if someone is made a party in place of a party who has become bankrupt or died, but the person is already a party on the other side of the proceeding, the court must order the person to cease to be a party on the other side.
The court may make an order under this rule—
on application by a party to the proceeding or anyone to whom an interest or liability in the proceeding has passed; or
on its own initiative.
An application for an order under this rule must be served on everyone who could be affected by the order.
Before making an order under this rule because a party has died, the court may require notice to be given to—
an insurer of the deceased party who has an interest in the proceeding; and
anyone else who has an interest in the deceased party’s estate.
An insurer or other person given notice is entitled to be heard on the hearing of the application.
A sealed copy of an order made under this rule must be served on all parties, including a party (other than any applicant for the order) who has been included, removed or substituted.
The court may give directions about the service of the order.
If—
a party who has died does not have a personal representative and the court orders that a person be substituted as a party for the party; and
a grant of probate or administration is later made;
the person must give the personal representative a copy of all documents in the person’s possession relating to the proceeding.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.