(1) This rule applies in a proceeding if:

(a)

a party (the first party ) may be held liable to contribute towards an amount of debt or damages that may be recovered from another party (the second party ) in the proceeding; and

(b)

at any time after entering an appearance in the proceeding, the first party makes an offer to the second party, without prejudice to the first party's defence, to contribute, to a specified extent, to the amount of the debt or damages.

(2)

The first party's offer must not be brought to the attention of the Court until all issues in relation to the first party's liability, or the amount of the debt or damages, have been decided between the parties.

Chapter 4 Bankruptcy proceedings