Order 42 β€” Payment Into and Out of Court

Rule 1 Payment into and out of Court.

(1) Where after service in any proceeding for debt or damages, a defendant envisages an intention to pay money into Court in respect of the proceeding, he shall notify the Chief Registrar who will thereupon direct him.

(2) Payment shall be made to the plaintiff or on his written authority to his legal practitioner and the proceeding in the action or in respect of the specified cause of action shall abate.

(3) Where the plaintiff accepts money paid into Court in satisfaction of his claim or if he accepts a sum paid in respect of any specified cause of action, and gives notice that he abandons the other cause of action, he may after (14) days from payment out and unless a Judge otherwise orders, tax his cost incurred to the time of payment into Court, and 48 hours after taxation may sign judgment for his taxed cost.

(4) Where in an action for libel or slander, the plaintiff accepts money paid into Court, either party may apply, by summons to a Judge, for leave for the party to make a statement in open Court in terms approved by the Judge.

Rule 2 Plaintiff may take out money.

Where the whole of the money in Court is not taken out under rule 2 of this order, the money remaining in Court shall not be paid out except in satisfaction of the claim or specified cause of action in respect of which it was paid in pursuance of an order of a Judge which may be made at any time before, during or after trial.

Rule 3 Money remaining in Court.

(1) Money may be paid into Court under rule 1 of this order by a defendant sued jointly or in the alternative upon notice to the other defendant.

(2) Where the plaintiff elects within 14 days after receipt of notice of payment into Court to accept the sum paid into Court, he shall give notice as specified in Form 29 in Appendix 6 to these Rules with such modifications or variations as circumstances may require to each defendant and any further proceeding in the action or in respect of the specified cause of action shall abate.

(3) The money shall not be paid out except in pursuance of an order of a Judge dealing with the whole cause of action.

(4) In an action for libel or slander against several defendants sued jointly, if any defendant pays money into Court, the plaintiff may within 14 days elect to accept the sum paid into Court in satisfaction of his claim against the defendant making the payment and shall give notice to the defendant as specified in Form 29 in Appendix 6 to these Rules with such modifications or variations as circumstances may require.

(5) The plaintiff may tax his cost against the defendant who has made such payment in accordance with rule 2 (3) of this order and the action shall abate against that defendant.

(6) The plaintiff may continue with the action against any other defendant but the sum paid into Court shall be set off against any damages awarded to the plaintiff against the defendant against whom the action is continued.

Rule 4 Several defendants.

A person made a defendant to a counter-claim may pay money into Court in accordance with the foregoing rules, with necessary modifications.

Rule 5 Counter-claim.

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

(2) Any money which expression for the purpose, of this rule includes damages in any way recovered, adjudged ordered, awarded or agreed to be paid in any proceeding in respect of the claim of a person under legal disability whether by Judgement settlement, compromise, payment into Court or otherwise, before, at or after the trial, shall not be paid to the plaintiff, to the guardian of the plaintiff or to the plaintiff’s legal practitioner unless a Judge shall so direct.

(3) The money so recovered, adjudged, ordered, awarded or agreed to be paid shall be dealt with as the Judge shall direct and the direction given may include any general or special direction that the Judge may deem fit to give, including a direction 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 plaintiff or to the guardian 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 plaintiff’s legal practitioner in respect of cost or of the difference between party and party and legal practitioner and client cost.

Rule 6 Persons under legal disability.

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

Rule 7 Payment into and withdrawal of money from Court.

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

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