(1)This section shall have effect where a compensation order or a service compensation order or award has been made in favour of any person in respect of any injury, loss [F1, damage, alarm or distress] and a claim by him in civil proceedings for damages in respect thereof subsequently falls to be determined.

(2)The damages in the civil proceedings shall be assessed without regard to the order or award; but where the whole or part of the amount awarded by the order or award has been paid, the damages awarded in the civil proceedings shall be restricted to the amount (if any) by which, as so assessed, they exceed the amount paid under the order or award.

(3)Where the whole or part of the amount awarded by the order or award remains unpaid and damages are awarded in a judgment in the civil proceedings, then, unless the person against whom the order or award was made has ceased to be liable to pay the amount unpaid (whether in consequence of an appeal, or of his imprisonment for default or otherwise), the court shall direct that the judgment—

(a)if it is for an amount not exceeding the amount unpaid under the order or award, shall not be enforced; or

(b)if it is for an amount exceeding the amount unpaid under the order or award, shall not be enforced except to the extent that it exceeds the amount unpaid,

without the leave of the court.

(4)In this section a “service compensation order or award” means—

(a)an order requiring the payment of compensation under paragraph 11 of—

(i)Schedule 5A to the M1Army Act 1955;

(ii)Schedule 5A to the M2Air Force Act 1955; or

(iii)Schedule 4A to the M3Naval Discipline Act 1957; or

(b)an award of stoppages payable by way of compensation under any of those Acts.