New Rules on Inhibition from 22 April 2009
22 April 2009

Inhibition on the Dependence became a more readily available diligence when it became available in Sheriff Court actions on 1 April 2008 as described in an earlier Article.
Changes to Inhibition in Execution came into force on 22 April 2009 and made significant changes to the procedures for Inhibition in Execution.

Warrant to Inhibit competent on Sheriff Court and Other Decrees

Inhibition is now competent on a decree or document of debt. Inhibition remains competent on a Court of Session decree. Significantly, however, the short form of warrant on a Sheriff Court decree now authorises Inhibition. It is no longer competent for the Court of Session to grant letters of Inhibition. This now makes the procedure in Sheriff Court actions considerably simpler and quicker.

Service and Registration by Sheriff Officer.

As the short form of warrant now authorises Inhibition, where that diligence is required creditors no longer need to take preliminary steps via the Court of Session. It is simply a matter of sending the decree to officers of court with instructions to Inhibit. The sheriff officer can also arrange registration of the inhibition which ensures that the inhibition becomes effective sooner than was the case while Letters of Inhibition were returned to instructing agents. AMA will handle all instructions for service and registration expeditiously.

Notice of Inhibition

As mentioned above Inhibition becomes effective on the date of registration of the Inhibition. Inhibition can become effective prior to that Date if a Notice of Inhibition is registered and the Inhibition and execution of service are registered within 21 days of that notice. Again, AMA can handle all this procedure on behalf of clients.

Debt Advice and Information Package

Provision of debt advice was a theme running throughout the 2007 Act and provision of a DAIP was made part of a number of procedures. Inhibition is no different and service of an Inhibition must now be accompanied by provision of a DAIP. AMA will of course handle that as part of the process.

Summary Warrants

Inhibition remains incompetent based on a Summary Warrant. Summary Warrant creditors will continue to have to abandon the summary warrant and raise an ordinary action for the purpose of lodging an Inhibition. At that point they will have the option of making an application for warrant to Inhibit on the Dependence or waiting until they have a decree to proceed with an Inhibition in Execution.