(1) This rule applies if the party against whom an ancillary claim is made fails to file a defence in respect of the ancillary claim within the permitted time.
• Rule 18.6(2) deals with the time for filing a defence to an ancillary claim.
(2) The party against whom the ancillary claim is made —
(a) is deemed to admit the ancillary claim, and is bound by any judgment or decision in the main proceedings in so far as it is relevant to any matter arising in the ancillary claim;
(b) subject to paragraph (5), if judgment under Part 12 is given against the ancillary claimant, may apply to enter judgment in respect of the ancillary claim.
(3) Paragraph (2) does not apply in ancillary proceedings against the Crown unless the court gives permission.
(4) An application for the court's permission under paragraph (3) may be made without notice unless the court directs otherwise.
(5) The ancillary claimant may not enter judgment under paragraph (2) (b) if the ancillary claimant wishes to obtain judgment for any remedy other than a contribution or indemnity for a sum not exceeding that for which judgment has been entered against the ancillary claimant.
(6) The court may at any time set aside or vary a judgment entered pursuant to paragraph (2)(a) or (b) if it is satisfied that the ancillary defendant —
(a) applied to set aside or vary the judgment as soon as reasonably practicable after finding out that the judgment was binding or had been entered;
(b) gives a good explanation for the failure to file a defence; and
(c) has a real prospect of successfully defending the ancillary claim.
(7) In any event, the court may set aside a judgment mentioned in paragraph (2)(a) or (b) if the ancillary defendant satisfies the court that there are exceptional circumstances.