Order 36 — Payments Into and Out of Court

(1) In any action for debt or damages the Defendant may, at any time after the Defendant has entered appearance in the action, pay into Court a sum of money in satisfaction of the cause of action in respect of which the Claimant claims or, where two or more causes of action are joined in the action, a sum or sums of money in satisfaction of any or all of those causes of action.

(2) On making any payment into Court under this Rule, and on increasing any such payment already made, the Defendant shall give notice thereof in Form 23 to the Claimant and every other Defendant (if any); and within seven (7) days after receiving the notice, the Claimant shall send to the Defendant a written acknowledgment of its receipt.

(1) Unless the Defendant denies liability, payment into Court, whether made in satisfaction of the Claimant’s claim generally or in satisfaction of some specific part of the claim, operates as an admission of liability to the extent of the amount paid in and no more, and for no other purpose.

(2) When money is paid into Court and the Defendant is denying liability, it shall be subject to the provisions of Rule 5 of this Order.

Where the Defendant pays money into Court, and the liability of the Defendant in respect of the claim or cause of action in satisfaction of which the payment into Court is made is not denied in the defence, the Claimant shall be at liberty to accept the same in full satisfaction and discharge of the cause of action in respect of which it is paid in, and in that case the Claimant may

If the Claimant does not so apply, the Claimant shall be considered as insisting that the Defendant was and is indebted to the Claimant in a greater amount, than the sum paid in and, in that case the Court, disposing of costs at the hearing, shall have regard to the fact of the payment into Court having been made and not accepted.

(1) When the liability of the Defendant, in respect of the claim or cause of action in satisfaction of which the payment into Court has been made, is denied in the pleading, the matter shall proceed to trial.

(2) Where money is paid into Court with denial of liability, the Claimant may proceed with the action in respect of the claim and if the Claimant succeeds, the amount paid shall be applied so far as is necessary in satisfaction of the claim, and the balance, if any, shall on the order of the Court be paid back to the Defendant(s).

(3) Where the Defendant(s) succeeds in respect of such claim, the whole amount paid into Court shall be paid to Defendant on the order of the Court.

(4) If the Claimant proceeds with the action in respect of such claim or cause of action or any part thereof, and succeeds, the amount paid in shall be applied, so far as is necessary, in satisfaction of the Claimant’s claim, and the balance, if any, shall on the order of the Court, be paid back to the Defendant.

(5) If the Defendant succeeds in respect of such claim or cause of action, the whole amount shall, under Court order, be paid back to the Defendant.

(1) Where an amount of money is required to be paid into or deposited in Court, the Court may, if it thinks it expedient, order that the money be paid into an interest yielding savings account with a reputable Commercial Bank with the name, The Chief Registrar, National Industrial Court of Nigeria.

(2) Such payment shall be done by the Chief Registrar, and any interest payable by the Bank shall accrue pro tanto to the benefit of the party who, at the end of the action, is entitled to the money originally paid into Court.

(3) In this Rule “Funds in Court” includes money paid into a bank account.

(1) In any proceeding in which money or damages is or are claimed by or on behalf of a person under legal disability, suing either alone or in conjunction with other parties, no settlement or compromise or payment or acceptance of money paid into Court, whether before, at or after trial, shall as regards the claims of any such person be valid without the approval of the Court.

(2) In any such proceedings in respect of the claims of any such person under legal disability, no money shall be paid to the Claimant or to the guardian of the claimant or to the claimant’s counsel whether by judgment settlement, compromise, payment into Court or otherwise, before, at, or after trial, unless a Judge shall so direct.
For the purposes of this rule, “money” includes damages in any way recovered, or adjudged or ordered or awarded or agreed to be paid.

(3) All monies so recovered or adjudged or ordered or awarded or agreed to be paid shall be dealt with as the Court shall direct. The directions thus given may include any general or special directions that the Court may deem fit to give, including directions on how the money is to be applied or dealt with and as to any payment to be made either directly or out of money paid into Court to the Claimant or to the guardian of the claimant in respect of money paid or expenses incurred or for maintenance or otherwise for or on behalf of or for the benefit of the person under legal disability or otherwise or to the claimant’s counsel in respect of costs.

Every application or notice for payment into or out of Court shall be made on notice to the other party.

A Claimant may, in answer to counter claim, pay money into Court in satisfaction of the counter-claim subject to the like conditions as to costs and otherwise as upon payment into Court by a Defendant.

Money paid into Court pursuant to Rule 1 or 7 or under an Order of the Court shall not be paid out except in pursuance of an Order of the Court.