Scotland - Summary Warrant: Claims for costs in insolvency cases
By virtue of Section 185 of the Insolvency Act 1986, apart from one or two exceptions,similar provisions apply to the winding up of a company to those applicable to claims forcosts in sequestration cases (DMBM671820).
As soon as you become aware that a company has been wound up or liquidated, you should
- tell the sheriff officer to take no further action
- withdraw the summary warrant action.
Where appropriate you should include the summary warrant costs in your claim in theliquidation and to this end, you should follow the instructions at DMBM671860. The exception to this being that where an arrestmenthas been laid outwith the 60 day period before liquidation but no decree offurthcoming has been obtained, legal opinion differs as to whether or not the moniesarrested must be handed over to the liquidator.
That being the case, where following arrestment the company is wound up or liquidatedbefore either payment or decree of furthcoming has been obtained then you should refer thepapers to the higher debt manager for instructions and at the same time advise theliquidator that a claim may be lodged in due course.