(1)  A person served with a defence and counterclaim or cross-application who is not already a party to the action is to file a notice of appearance.

(2)  The period limited for the filing of a notice of appearance is not less than that prescribed by rule 98 or 99 as if the person to whom the notice required by rule 196(2)(b) is directed was a defendant named in a writ or a respondent to an originating application.

(3)  A person to whom subrule (1) applies, other than a person served with a cross-application –

(a) may be proceeded against as if served with a writ in an action; and

(b) is to deliver a defence to the counterclaim within the appropriate period as if the defence and counterclaim were a statement of claim.