22. PAYMENT INTO AND OUT OF COURT

22. Payment Into and Out of Court.
order 22
Payment Into and Out of Court

1.Payment into Court. (O. 22 r. 1)

(1) In any action for a debt or damages any defendant may at any time after he has entered an appearance in the action pay into Court a sum of money in satisfaction of the causes of action in respect of which the plaintiff claims or, where two or more cause 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 must give notice thereof in Form 37 to the plaintiff and every other defendant (if any); and within 3 days after receiving the notice the plaintiff must send the defendant a written acknowledgement of its receipt.

(3) A defendant may, without leave, give notice of an increase in a payment made under this rule but, subject to that and without prejudice to paragraph (5), a notice of payment may not be withdrawn or amended without the leave of the Court which may be granted on such terms as may be just.

(4) Where two or more causes of action are joined in the action and money is paid into Court under this rule in respect of all, or some only, of those causes of action, the notice of payment–

(a) must state that the money is paid in respect of all those causes of action or, as the case may be, must specify the cause or causes of action in respect of which the payment is made; and

(b) where the defendant makes separate payments in respect of each, or any two or more, of those causes of action, must specify the sum paid in respect of that cause or, as the case may be, those causes of action.

(5) Where a single sum of money is paid into Court under this rule in respect of two or more causes of action, then, if it appears to the Court that the plaintiff is embarrassed by the payment, the Court may, subject to paragraph (6), order the defendant to amend the notice of payment so as to specify the sum paid in respect of each cause of action.

(6) Where a cause of action under section 7 of the Civil Law Act 1956 (Act 67) and a cause of action under section 8 of the said Act are joined in an action, with or without any other cause of action, the causes of action under the said sections of the said Act shall, for the purpose of paragraph (5), be treated as one cause of action.

2.Payment in by defendant who has counterclaimed. (O. 22 r. 2)

Where a defendant, who makes by counterclaim a claim against the plaintiff for a debt or damages, pays a sum of money into Court under rule 1, the notice of payment must state, if it be the case, that in making the payment the defendant has taken into account and intends to satisfy–

(a) the cause of action in respect of which he claims; or
(b) where two or more causes of action are joined in the counterclaim, all those causes of action or, if not all, which of them.

3.Acceptance of money paid into Court. (O. 22 r. 3)
(1) Where money is paid into Court under rule 1, then subject to paragraph (2), within 14 days after receipt of the notice of payment or, where more than one payment has been made or the notice has been amended, within 14 days after receipt of the notice of the last payment or the amended notice but, in any case, before the trial or hearing of the action begins, the plaintiff may

–
(a) where the money was paid in respect of the cause of action or all the causes of action in respect of which he claims, accept the money in satisfaction of that cause of action or those causes of action, as the case may be; or

(b) where the money was paid in respect of some only of the causes of action in respect of which he claims, accept in satisfaction of any such cause or causes of action the sum specified in respect of that cause or those causes of action in the notice of payment. by giving in Form 38 to every defendant to the action.
(2) Where after the trial or hearing of an action has begun–

(a) money is paid into Court under rule 1; or

(b) money in Court is increased by a further payment into Court under that rule.
the plaintiff may accept the money in accordance with paragraph (1) within 2 days after receipt of the notice of payment or notice of the further payment, as the case may be, but, in any case, before the Judge begins to deliver judgment.

(3) Rule 1(5) shall not apply in relation to money paid into Court in an action after the trial or hearing of the action has begun.

(4) On the plaintiff accepting any money paid into Court all further proceedings in the action or in respect of the specified cause or causes of action, as the case may be, to which the acceptance relates, both against the defendant making the payment and against and against any other defendant sued jointly with or in the alternative to him shall be stayed.

(5) Where money is paid into Court by a defendant who made a counterclaim and the notice of payment stated, in relation to any sum so paid, that in making the payment of the defendant had taken into account and satisfied the cause or causes of action, or the specified causes or causes of action in respect of which he claimed, then, on the plaintiff accepting that sum, all further proceedings on the counterclaim or in respect of the specified cause or causes of action, as the case may be, against the plaintiff shall be stayed.

(6) A plaintiff who has accepted any sum paid into Court shall subject to rules 4 and 10 and Order 76, rule 12, be entitled to receive payment of that sum in satisfaction of the cause or causes of action to which the acceptance relates.

4.Order for payment out of money accepted required in certain cases. (O. 22 r. 4)

(1) Where a plaintiff accepts any sum paid into Court and that sum was paid into Court–

(a) by some but not all of the defendants sued jointly or in the alternative by him; or

(b) with a defence of tender before action; or

(c) in satisfaction either of causes of action arising under sections 7 and 8 of the Civil Law Act 1956 or of a cause of action arising under section 12 of the said Act where more than one person is entitled to the money, the money in Court shall not be paid our except under paragraph (2) or in pursuance of an order of the Court, and the order shall deal with the whole costs of the action or of the cause of action to which the payment relates, as the case may be.

(2) Where an order of the Court is required under paragraph (1) by reason only of paragraph (1)(a), then, if, either before or after accepting the money paid into Court by some only of the defendants sued jointly or in the alternative by him, the plaintiff discontinues the action against all other defendants and those defendants consent in writing to the payment out of that sum, it may be paid out without an order of the Court.

(3) Where after the trial or hearing of an action has begun a plaintiff accepts any money paid into Court and all further proceedings in the action or in respect of the specified cause or causes of action, as the case may be, to which the acceptance relates are stayed by virtue of rule 3(4) then, notwithstanding anything in paragraph (2) the money shall not be paid out except in pursuance of an order of the Court, and the order shall deal with the whole costs of the action.

5.Money remaining in Court. (O. 22 r. 5)

If any money paid into Court in an action is not accepted in accordance with rule 3, the money remaining in Court shall not be paid out except in pursuance of an order of the Court which may be made at any time before, at or after the trial or hearing of the action; and where such an order is made before the trial or hearing the money shall not be paid out except in satisfaction of the cause or causes of action in respect of which it was paid in.

6.Counterclaim. (O. 22 r. 6)

A plaintiff against whom a counterclaim is made and any other defendant to the counterclaim may pay money into Court in accordance with rule 1, and that rule and rules 3 (except paragraph (5)), 4 and 5 shall apply accordingly with the necessary modification.

7.Non-disclosure of payment into Court. (O. 22 r. 7)

Except in an action to which a defence of tender before action is pleaded, and except in an action all further proceedings in which are stayed by virtue of rule 3(4) after the trial or hearing has begun, the fact that money has been paid into Court under the foregoing provisions of this Order shall not be pleaded and no communication of that fact shall be made to the Court at the trial or hearing of the action or counterclaim or of any question or issue to the debt or damages until all questions of liability and of the amount of debt or damages have been decided.

8.Money paid into Court under Order. (O. 22 r. 8)

(1) Subject to paragraph (2), money paid into Court under an order of the Court or a certificate of the Registrar shall not be paid out except in pursuance of an order of the Court.

(2) Unless the Court otherwise orders, a party who has paid money into Court in

pursuance of an order made under Order 14–

(a) may by notice to the other party appropriate the whole or any part of the money and any additional payment, if necessary, to any particular claim made in the writ or counter-claims, as the case may be, and specified in the notice; or

(b) if he pleads a tender, may by his pleading appropriate the whole or any part of the money alleged to have been tendered;

and money appropriated in accordance with this rule shall be deemed to be money paid into Court in accordance with rule 1 or money paid into Court with a plea of tender, as the case may be, and this Order shall apply accordingly.
9.Payment out of money paid into Court under Exchange Control Act 1953. Act 17. (O. 22 r. 9)

(1) Where money has been paid into Court in any cause or matter pursuant to the Exchange Control Act 1953 (Act 17), or an order of the Court made thereunder, any party to the cause or matter may apply for payment out of Court of that money.

(2) An application for an order under this rule must be made by summons which must be served on all parties interested.

(3) If any person in whose favour an order for payment under this rule is sought is resident outside the scheduled territories or will receive payment by order or on behalf of a person so resident, that fact must be stated in the summons.

(4) If the permission of the Controller authorising the proposed payment has been given unconditionally or on conditions which have been complied with, that fact must be stated in the summons and the permission must be attached to the summons.

10.Person to whom payment to be made. (O. 22 r. 10)

(1) Where the party entitled to money in Court is a person in respect of whom a certificate is or has been in force entitling him to legal aid under the Legal Aid Act, 1971 (Act 26), payment shall be made only to that party’s solicitor, or, if he is not represented by a solicitor, then, if the Court so orders, to the Director of Legal Aid, without the need for any authority from the party.

(2) Subject to paragraph (1), payment shall be made to the party entitled or, on his written authority, or his solicitor or, if the Court so orders, to his solicitor without such authority.

(3) This rule applies whether the money in Court has been paid into Court under rule 1 or under the order of the Court or a certificate of the Registrar.

11.Payment out Small Intestate Estates. (O. 22 r. 11)

Where a person entitled to a fund in Court, or a share of such fund, dies intestate and the Court is satisfied that no grant of administration of his estate has been made and that the assets of his estate do not exceed $10,000 in value, including the value of the fund or share it may order that the fund or share shall be paid, transferred or delivered to the person who, being a widower, widow, child, father, mother, brother or sister of the deceased, would have the prior right to a grant of administration of the estate of the deceased.

12.Payment of hospital expenses. (O. 22 r. 12)

(1) This rule applies in relation to an action or counterclaim for bodily injury arising out of the use of a motor vehicle on a road or any place to which the public have a right of access in which the claim for damages includes a sum for hospital expenses.

(2) Where the party against whom the claim is made, or an authorised insurer within the meaning of section 75 of the Road Traffic Ordinance 1958 (49/58)*, or section 4 of the Motor Vehicles (Third–Party Risks) Ordinance, Sarawak or section 4 of the Road Traffic (Third Party Insurance) Ordinance, Sabah pays the amount for which that party or insurer, as the case may be, is or may be liable under that Ordinance in respect of the treatment afforded by a hospital to the person in respect of whom the claim is made, the party against whom the claim is made must, within 7 days after payment is made, give notice of the payment to all the other parties to the action.
* Now section 91 of the Road Transport Act 1987 (Act 333)