Sanction for non-compliance - claimant who has been awarded a sum

• A. An order that the party at fault pays the costs of the proceedings, or part of the costs of the other party or parties
• B. An order that the party at fault pays those costs on an indemnity basis
• C. An order depriving that party of interest on that sum for a specified period, and/or awarding interest at a lower rate
• D. An order awarding interest on that sum for a specified period at a higher rate, not exceeding 10% above base rate

Answer: (C)

When a party fails to comply with an order to pay a sum awarded to the claimant, the court can sanction that non-compliance by manipulating the interest on the amount due. The purpose is to penalise delay and encourage timely payment. The specific remedies available include depriving the non-compliant party of interest on the sum for a set period and/or awarding interest at a lower rate. This means the claimant may receive little or no interest for a defined time, or the interest charged on the amount may be reduced, as a consequence of the delay.

Other options involve costs (who pays the proceedings’ costs) rather than the payment itself, or contemplate different principles of interest not tied to sanctions for non-payment. An increased interest rate is not the typical sanction in this context, whereas reducing or withholding interest directly addresses the impact of the delay in complying with the payment obligation.