The relevant passage in LASORS states:
In circumstances where previous flying training towards an ICAO PPL(A) has been completed but no licence has been issued, PLD will consider the crediting of such flight time towards the issue of a JAR-FCL PPL(A). In all cases, applicants must apply in writing to PLD enclosing appropriate training records for the PPL training received. PLD will review the training records to establish a course of training and advise the applicant accordingly.
"Total nonsense of the CAA inspector to imply the conditions you state being at the CAA's discretion."? - I think not!! It seems to me very much as though it is
entirely at the CAA's discretion.
Perhaps, BEagle, you could tell us how many cases you are aware of when someone has been allowed to credit such flight time other than in the circumstances quoted by Keygrip? - or perhaps not.