Where money is paid into court 'as security for compliance with a statutory demand if the appeal is dismissed', the security authorises payment out to the creditor to put it in the same position as if the debtor had complied, even after the compliance period has expired. The security does not merely preserve the money for the debtor to elect whether to comply. However, a creditor receiving payment out in these circumstances may be required to undertake not to rely on the debtor's non-compliance with the statutory demand in any winding up proceedings.
The full text is available to signed-in members, including the 6 later cases that cite this judgment.