PT-2021-000393 - [2025] EWHC 2749 (Ch)

Leaving aside the appeal itself, which I will address at length in the analysis of the penalty issue, two subsequent events are notable. On 12 December 2023 CEK was dissolved by compulsory strike off. It was only restored to the register on 18 December 2024. That is in part the reason for the delay between the Court of Appeal Judgment and this hearing. It is therefore a delay which is at least in part of the Claimants’ making.

Secondly, following the Court of Appeal Judgment the parties agreed the terms of a consent order in March this year allowing LCL permission to advance a counterclaim for the outstanding debt and a ruling on the question of post-default interest. I deal with that counterclaim below, but broadly what is sought is:

The broad thrust of the Defence to Counterclaim is that even if the Default Rate (or statutory interest) are due, LCL is precluded from recovering that interest due to its own conduct in refusing offers made by the Claimants relating to (to use as neutral a term as I can at this stage) repayment of the Loan. If that defence were successful, the question of penalty would not arise because that is a question of the rate to be paid and if no interest were due, the rate would be academic. There was also a claim of set-off that went to both the interest sought and the repayment of capital premised on the increased cost of refinancing now faced by the Claimants. By the time of this hearing that was no longer factually sustainable and was not pursued.