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Ghai v Maymask [2020] UKUT 293 (LC) – Martin Rodger QC

On 26 October 2020, Martin Rodger QC, Deputy Chamber President Upper Tribunal (Lands Chamber) handed down judgment in Ghai v Maymask [2020] UKUT 293 (LC), an appeal from a decision of the FTT.  The case is about the effect of mortgage receivership on company directors’ powers to deal with property.   Mr Chahal, the director of a company, BHL, had executed a transfer of a freehold property belonging to BHL to an unconnected third party, Maymask.   The shareholders of BHL objected to the registration of Maymask. They asserted that receivers were still in post when the transfer was executed,  that Mr Chahal had no power to execute the transfer on behalf of the company whilst receivers remained appointed, and that Maymask knew of the receivership and hence the transfer was void.. Martin Rodger QC first conducted a review of the FTT’s decision, and found that the FTT was right to determine that there was no reasonable prospect of the objection succeeding: he said that even if, on the facts, the receivership had not terminated before the transfer was executed, Maymask would have been entitled to be registered by reason of Land Registration Act 2002.  For good measure, he also found on the facts, having heard the evidence, that the receivership had, in any event, terminated before the transfer was executed.  The objection and the appeal were dismissed.

Stephanie Tozer QC acted for the successful Respondent.

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