keep The Insolvency (Amendment) Rules 2006
The Insolvency (Amendment) Rules 2006 amend the Insolvency Rules 1986 with transitional provisions specifying when the amendments apply (based on dates of administration/liquidation commencement), and substitute a new Rule 13.12 redefining 'debt' and 'liability' for winding-up and administration proceedings. Key changes include: clarifying that tort liabilities are provable debts when cause of action has accrued or actionable damage remains; establishing that debts may be present, future, contingent, or unliquidated; and extending these definitions to administration proceedings.
This rule provides essential definitional clarity for insolvency proceedings. Without precise legal definitions of 'debt' and 'liability', insolvency practitioners and creditors would face costly uncertainty about what claims are provable. The rule applies established common law principles rather than imposing new regulatory burdens—it merely clarifies existing legal concepts. Deleting it would create practical chaos in insolvency proceedings, harming creditors seeking recovery and prolonging liquidation processes. While technical, this serves a necessary legal function rather than restricting economic activity.