​KembaraXtra – Legal Terms – Payment into Court


Payment into court refers to the payment by a defendant into a court-controlled account as settlement of all or part of a claim in civil proceedings.


The procedure is designed to encourage settlement without proceeding to trial.


Under the Civil Procedure Rules, payment into court is now generally dealt with under the Part 36 procedure.


If the claimant rejects the payment and later fails to obtain a better judgment at trial, adverse costs consequences may follow.


The mechanism promotes efficiency and reduces unnecessary litigation expenses.