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Possession granted of registered lands foot of default in repayment of loan

By: Ian Fitzharris BL

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High Court grants order for possession of lands owned by defendant company in default of its repayment obligations as borrower of 'working capital' loan facility, where: (a) there was no basis for joining a director of the company (who appeared alone at the hearing of the application wherein the company itself was not legally represented) to the proceedings; (b) evidence established the bank had a registered charge against the company's lands; (c) there had been default in payment of instalments pursuant to a mortgage, a lawful demand for repayment had been made and the power of sale was exercisable.

Application for order of possession of lands - order sought authorising power of sale - enforcement of charge against borrower - procedural history - no exceptional circumstances permitting director of company to represent company as defendant in proceedings - brief oral submission by director de bene esse - background facts to application - chronology of borrowings - execution under seal - bank's powers as mortgagee under general conditions of mortgage - concept of 'total debt' - mortgage registered in land registry as a charge against lands - borrowing facility sanctioned as 'working capital' - security - director had opportunity to speak to solicitor prior to signing letter of sanction - company resolution passed to accept offer of facility - letter of demand for possession - no argument advanced by director as to why he ought to be permitted to be joined to proceedings - no reliance on status as guarantor - mortgage deed applies to loan facility pursuant to initial letter of sanction - no basis for director to be joined to proceedings - bank entitled to orders sought

Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.

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