Ahsan Mustafa

An inhibition on the dependence is an interim protective diligence available under Scots law. It is designed to preserve a pursuer’s position pending determination of the action by preventing the defender from dealing with heritable property in a way that could prejudice enforcement of any future decree. It is not, however, a judgment on the merits of the claim.

Although an inhibition on the dependence may be registered in the Register of Inhibitions and will be discoverable during property and conveyancing searches, it does not ordinarily appear as a separate entry on the consumer credit reports maintained by the principal credit reference agencies.

This distinction is important. Defenders are often understandably anxious that the granting of an interim diligence will immediately affect their ability to obtain credit. In practice, a standard consumer credit check will not usually reveal the existence of an inhibition on the dependence.

The position changes if the pursuer ultimately obtains decree. A court decree may have significant implications for a defender’s credit record, depending upon the circumstances in which it is registered and reported. Accordingly, while the interim diligence itself may not affect a consumer credit file, an unsuccessful defence resulting in decree may have wider financial consequences.

From a practical perspective, this distinction may assist parties in settlement negotiations. A defender concerned about the prospect of an adverse credit history should appreciate that resolving proceedings before decree may avoid consequences that could arise following judgment.

Equally, creditors should ensure clients understand the limits of an inhibition on the dependence. While it does not ordinarily affect a consumer credit report, it is far from inconsequential. Registration may significantly restrict dealings with heritable property and may complicate any proposed sale, refinance or granting of a standard security.

The distinction between an inhibition on the dependence and a court decree illustrates an important feature of Scots diligence. One protects a pursuer’s position pending litigation without ordinarily affecting a consumer credit file; the other, if granted, may carry broader financial and reputational consequences. Understanding that difference can assist both advisers and litigants in making informed decisions as litigation progresses.

Ahsan Mustafa is a senior associate at Aberdein Considine LLP