When is security deemed received—on payment or on receipt of cleared funds? Avneet Baryan examines the case law
- The Court of Appeal has confirmed the importance of compliance with court orders for the effective administration of justice.
- Payment by cheque for security for costs is deemed received once payment is received in cleared funds, not when payment is made.
The recent case of Parsdome Holdings Ltd v Plastic Energy Global SL [2024] EWCA Civ 1293 makes for an interesting read for commercial litigators, particularly regarding compliance with security for costs orders. While the case underscores the critical importance of adhering to court orders to avoid a sanction such as strike out, there is also an interesting story about when security for costs is deemed received by the Court Funds Office (CFO).
The claimant British Virgin Islands (BVI) company, Parsdome, brought proceedings against the defendant, Plastic Energy, alleging that Plastic Energy induced it to enter into a deed of novation of a convertible loan agreement by fraudulent misrepresentations.
.tmb-mov69x69.jpg?sfvrsn=e3c4b2f1_1)
