RA Securities Ltd v Mercantile Credit Co Ltd
RA Securities Ltd v Mercantile Credit Co Ltd
- 1994
- All England Law Reports (1994) 3 AllER 581-587 (7) .
ChD 18, 27 May 1994. The assignee of a lease (X) entered into a voluntary arrangement with his creditors. The landlord (R) was notified of the arrangement and although he did not attend the meeting was assumed to be party to it. The original lessee (M) was not notified. R did not stand to cover what he was owed and proceeded to claim from M. It was held that because M was not party to the voluntary arrangement they could not rely on it to avoid liability. Judgment for the plaintiff.
ASSIGNMENT
INSOLVENCY ACT 1986 S5(2)
LEASES
OBLIGATION TO PAY RENT
RA SECURITIES V MERCANTILE CREDIT CO LTD
RENT ARREARS
SURRENDER OF LEASE
VOLUNTARY ARRANGEMENT
ChD 18, 27 May 1994. The assignee of a lease (X) entered into a voluntary arrangement with his creditors. The landlord (R) was notified of the arrangement and although he did not attend the meeting was assumed to be party to it. The original lessee (M) was not notified. R did not stand to cover what he was owed and proceeded to claim from M. It was held that because M was not party to the voluntary arrangement they could not rely on it to avoid liability. Judgment for the plaintiff.
ASSIGNMENT
INSOLVENCY ACT 1986 S5(2)
LEASES
OBLIGATION TO PAY RENT
RA SECURITIES V MERCANTILE CREDIT CO LTD
RENT ARREARS
SURRENDER OF LEASE
VOLUNTARY ARRANGEMENT