Purewal v Countrywide Residential Lettings Ltd & Anor

Purewal v Countrywide Residential Lettings Ltd & Anor

Once a bankruptcy order is made, the mortgagor ceases to have an interest in the equity of redemption; all duties of receivers are owed to the trustee-in-bankruptcy, not the bankrupt mortgagor. The claimant therefore had no cause of action for breach of duty by the receivers post-bankruptcy.

Parties
Claimant/appellant: Mr Rajinder Singh Purewal; Defendant/respondent: Countrywide Residential Lettings Limited; Defendant/respondent: Jim Duffy; Defendant/respondent: Keith Spenceley
Jurisdiction
England and Wales
Judgment Date
05 November 2015
Procedural Posture
Civil Appeal / Appeal From Trial Court Judgment
Outcome
Appeal dismissed
Legal Topics
Duties of LPA Receivers, Bankruptcy and Mortgaged Property, Equitable Duties, Causation in Breach of Duty Claims
Property Law Insolvency Law Equity Duties of LPA Receivers Bankruptcy and Mortgaged Property Equitable Duties Causation in Breach of Duty Claims

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Parties

Mr Rajinder Singh Purewal

Claimant/appellant

Countrywide Residential Lettings Limited

Defendant/respondent

Jim Duffy

Defendant/respondent

Keith Spenceley

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Trial Court Judgment

Legal Issues

  1. 1 Whether LPA receivers owe a duty to a bankrupt mortgagor after bankruptcy order
  2. 2 Whether the claimant had a cause of action for breach of duty by the receivers post-bankruptcy
  3. 3 Whether causation was established regarding the alleged breach

Ratio Decidendi

Once a bankruptcy order is made, the mortgagor ceases to have an interest in the equity of redemption; all duties of receivers are owed to the trustee-in-bankruptcy, not the bankrupt mortgagor. The claimant therefore had no cause of action for breach of duty by the receivers post-bankruptcy.

Court Disposition

Appeal dismissed