Section 25.20

The court must not order an interim payment of more than a reasonable proportion of the likely amount of the final judgment. The court must take into account contributory negligence and any relevant set-off or counterclaim. The court may order an interim payment by instalments. If so, the order must set out— the total amount of the payment; the amount of each instalment; the number of instalments and the date on which each is to be paid; and to whom payment should be made. Where a party seeks an interim payment and the court has ordered an account to be taken, if on the evidence the account is bound to result in a payment to the applicant, the court must, before making an order for interim payment, order that the liable party pay to the applicant the amount shown by the account to be due. The permission of the court must be obtained before making a voluntary interim payment in respect of a claim by a child or protected party. ‘Child’ and ‘protected party’ have the same meanings as in rule 21.1(2). The court may adjust any interim payment whether or not any payment has yet been made (voluntarily or under a previously made order). The court may in particular— order all or part of the interim payment to be repaid; vary or discharge the order for the interim payment; order a defendant to reimburse, either wholly or partly, another defendant who has made an interim payment. The court may make an order under paragraph (6)(c) only if— the defendant to be reimbursed has claimed against the other defendant for a contribution, indemnityor other remedy; and where the claim to which the interim payment relates has not been discontinued or disposed of, the circumstances are such that the court could make an interim payment order under this Section. Where a defendant has made an interim payment, and the amount of the payment is more than their total liability under the final judgment or order, the court may award them interest on the overpaid amount from the date when they made the interim payment. (Practice Direction 40B, paragraphs 6.1 to 6.4 provide further information concerning adjustment of the final judgment sum.)

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Source: legislation.gov.uk · retrieved 2026-08-15