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Rhodes and another v Allied Dunbar Pension Services Ltd and others

Language: English Series: Weekly Law Reports ; (1987) 1 WLR 1703-1710(8)Publication details: 1987Subject(s): Summary: ChD 19 June 1987. A company created a debenture over its assets in favour of a bank, which included the lease of premises part sublet. In July 1986 the bank appointed receivers under the debenture and the rent from the sublet premises became payable to them. In February 1987 the company`s landlords served notice on the sub-tenants under Law of Distress Amendment Act 1908 s6 requiring all future rent to be paid to them. The receiver summoned a declaration that the rent was payable to them. It was held that the words of s3 of the Act, that the under -tenant `shall be deemed to be the immediate tenant of the superior landlord` were construed as meaning landlords, tenants and sub-tenants and not mortgagees, assignees or third parties. Since at the time the landlords gave notice under s6, the tenant no longer had the right to receive rents as they were assigned to receivers, it was held that the receivers were entitled to the rents payable under the sub-lease.
Holdings
Item type Current library Call number Copy number Status Barcode
Law report London Journal article ABS38591 (Browse shelf(Opens below)) 1 Available 11400-1001

ChD 19 June 1987. A company created a debenture over its assets in favour of a bank, which included the lease of premises part sublet. In July 1986 the bank appointed receivers under the debenture and the rent from the sublet premises became payable to them. In February 1987 the company`s landlords served notice on the sub-tenants under Law of Distress Amendment Act 1908 s6 requiring all future rent to be paid to them. The receiver summoned a declaration that the rent was payable to them. It was held that the words of s3 of the Act, that the under -tenant `shall be deemed to be the immediate tenant of the superior landlord` were construed as meaning landlords, tenants and sub-tenants and not mortgagees, assignees or third parties. Since at the time the landlords gave notice under s6, the tenant no longer had the right to receive rents as they were assigned to receivers, it was held that the receivers were entitled to the rents payable under the sub-lease.