The claimant made a refund of VAT by payment into their bank account by mistake. The creditor had requested that it not be so repaid. The claimant had made a second refund direct, and now sought return of the payment from the bank.
Held: The money was to be repaid. It was unsolicited, and did not amount to a payment of the debt unless accepted. The debtor could not force a particular method of payment on the creditor, and nor was the creditor obliged to accept a particular form of payment. There is no general rule that a bank has authority to receive money on behalf of is customer to give discharge to a debt. The money was paid by mistake, did not discharge the debt and was repayable.
Judges:
Rich, J
Citations:
Times 02-Dec-2002, Gazette 12-Dec-2002
Jurisdiction:
England and Wales
Banking
Updated: 29 June 2022; Ref: scu.178302