There are no mandatory rules to reply on Defence unless it served with counterclaim. If Defendant files and serve defence with counterclaim, claimant should guided by court procedure Part 20.
Even if claimant wishes to reply to the defence it need to be filed together with direction questionnaires and send it all parties at the same time under court procedure part 15.8:
15.8 If a claimant files a reply to the defence, the claimant must
(a) file the reply with a directions questionnaire; and
(b) serve the reply on the other parties at the same time as it is filed.
Like all other court statements, reply to small claim defence must be verified and contain statement of truth.
In case of claimant refused to reply on defence it couldn’t be taken as admission fact araised in defence.
Reply to defence
16.7
(1) A claimant who does not file a reply to the defence shall not be taken to admit the matters raised in the defence.
(2) A claimant who –
(a) files a reply to a defence; but
(b) fails to deal with a matter raised in the defence, shall be taken to require that matter to be proved.
Reply to defence is necessary if defendant fully or partially admits the small claim and suggests a schedule of payment or installments. In this case co-operation with defendant could avoid a hearing and further court fee related with trial.
If claimant fails to reply on defendant admission then small claim case will be stayed(hold).
How to write reply to defence
Reply to defence is the same statement as particulars of claim and should be formatted the same way:
1. Put in the heading of statetment words "Reply to Defence".
2. Response should be structured the same way as defendant's reply. Each number of point should be tailored with paragraphs in the defence. For example: Paragraph 1 of the defence is admitted. Or “Paragraph 2 of the defence declined. Because….” It is a claimant’s favour to provide a reasons for disputing what opposite side says.
3. Claimant could have your first point as the following which saves you referring to each paragraph: "Unless otherwise stated, references to paragraph numbers in this “Reply to Defence” are references to the corresponding paragraphs of the Defence."
4. Claimant may request to provide small claim evidences(photography, receipt, copy of contract and etc.) to anything referred in the Defence. Request to disclosure evidences is needed to be made in separate document. Defendant would have a 7 days to provide it.
5. Even if defendant asks the claimant to provide some documentary of photo evidences, claimant should send it in his Reply. If he wouldn’t do it then court may request it before hearing. Earliest disclosure evidences and other facts could contribute in small claim settlement or fast and clear court hearing.