In the recent High Court decision in Rawbank S.A. -v-
Travelex Banknotes Ltd [2020] EWHC 1619 (Ch) the advantages of
making a Part 36 offer even in circumstances where a defence has no
prospect of success were considered.
Background
The High Court was recently asked to look at whether the
claimant's Part 36 offer, which only offered a very small
discount of 0.3% in relation to the principal sum and accruing
interest, constituted a genuine offer to settle and to consider
whether the defendant should be subject to the usual interest and
cost consequences by failing to beat such an offer.
The claimant, the largest bank in the Democratic Republic of
Congo, had entered into a contract with the defendant for the
supply of banknotes. The claimant placed an order for $40 million
in banknotes in March 2020 and transferred the purchase price of
$40,048,000. The defendant upon receipt of the order confirmed the
banknotes would be delivered on 23 March 2020, but concerns
