Pourdanay v Barclays Bank Plc

JurisdictionEngland & Wales
Judgment Date06 November 1996
Date06 November 1996
CourtChancery Division

Chancery Division

Before Sir Richard Scott, Vice-Chancellor

Pourdanay
and
Barclays Bank plc

Mortgage - contractual tenancy binding on mortgagee - succeeding statutory tenancy also binding

Mortgagee is bound by statutory tenancy

If a protected contractual tenancy was, when granted, binding on a mortgagee, a statutory tenancy that came into existence on the termination of the contractual tenancy was also binding on that lender.

Sir Richard Scott, Vice-Chancellor, so held in a reserved judgment given in open court after a hearing in chambers in the Chancery Division, allowing the appeal of David Zaroovabli, Sabrina Zaroovabli and Mrs Anoosh Pourdanay from the order of Deputy Master Price of April 18, 1996 whereby he ordered possession of a registered property known as 136 Kings Drive, Edgeware, Middlesex to be delivered up to the bank.

Mr Martin Westgate for Mrs Pourdanay; Mr David Wolfson for the bank.

THE VICE-CHANCELLOR said that on April 29, 1988 Mr and Mrs Zaroovabli were registered as proprietors of the property. On May 25, 1988 they charged the property by way of legal mortgage to the bank as security for a loan. Inexplicably the bank did not register the charge.

By clause 4 of the charge "no statutory or other power of granting…tenancies of the mortgaged property…shall be capable of being exercised by the mortgagor without the previous consent in writing of the bank".

On July 28, 1988 the Zaroovablis in writing granted Mrs Pourdanay a tenancy of the property for a six-month term from August 1, 1988 to February 1, 1989 at a rent of £585 with an option to renew. The consent in writing of the bank to the grant of that tenancy was not obtained and there was no evidence that the bank knew of the grant.

Mrs Pourdany was not aware of the bank's security over the property. She went into occupation of the property on August 1 and had been there ever since. On August 23, 1994 the bank finally registered the charge that had been executed on May 25, 1988. On October 23, 1995 the bank issued an originating summons claiming possession of the property.

Under section 1 of the Rent Act 1977, Mrs Pourdanay's contractual tenancy granted by the written agreement of July 28 was a protected tenancy. When it terminated, pursuant to section 2(1)(a) of the Act, it was followed by a statutory tenancy.

Mr Wolfson accepted, given Woolwich Building Society v DickmanUNK ([1996] 3 All ER 204, 211), Dudley and District Benefit Building Society v EmersonELR([1949] Ch 707, 718)...

To continue reading

Request your trial
4 cases
  • R v Immigration Appeal Tribunal, ex parte Shah
    • United Kingdom
    • House of Lords
    • 25 March 1999
    ...the Court of Appeal had allowed the appeal of the Secretary of State for the Home Department from the order of Mr Justice Sedley (The Times November 12, 1996) allowing her application for judicial review of the refusal dated August 7, 1995 by the Immigration Appeal Tribunal of leave to appe......
  • Halifax Building Society (formerly The Leeds Permanent Building Society v Emmanuel Fanimi and Another
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 21 January 1997
    ...has told us this afternoon that the case referred to in paragraph 7 of his affidavit was ( Pourdanay v. Barclays Bank Plc The Times Law Reports, 12th November 1996), a decision of the Vice-Chancellor given on 6th November. 13 I deal first with the application to relist the appeal. It may be......
  • Blackstone Franks Investment Management Ltd v Robertson
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 7 April 1998
    ...Ritchie Robertson from the decision of the Employment Appeal Tribunal (Mr Justice Holland, Mrs M E Sunderland and Ms B. Switzer) (The Times November 12, 1996) that had allowed an appeal by Blackstone Franks Investment Management Ltd from an order of a Liverpool industrial tribunal in respec......
  • Islam v Secretary of State for the Home Department; R v IAT, ex parte Shah
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 23 July 1997
    ...by the Secretary of State for the Home Department in the case of Mrs Syeda Khatoon Shah from the order of Mr Justice Sedley (The Times November 12, 1996) who had allowed Mrs Shah's application for judicial review of the refusal by the Immigration Appeal Tribunal dated August 7, 1995 of leav......
3 books & journal articles

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT