Azam v Violet Developments LLP & Ors [2025] EWCC 81 (13 November 2025)

Azam v Violet Developments LLP & Ors [2025] EWCC 81 (13 November 2025)

The court held that the statutory discretion under s.146 Law of Property Act 1925 is sufficiently wide to permit the imposition of relief conditions addressing breaches and losses beyond those specified in the s.146 notice, where necessary to do equity and avoid unjust enrichment of the tenant. The only unremedied breach in the s.146 notice was failure to provide progress reports, but the court found it just to require compensation for delay and incomplete works as a condition of relief. The court rejected the Claimant's claim for £500,000 under the Agreement for Lease, finding no novation or assignment of that obligation to Violet. The court accepted the expert evidence as to the cost of...

Citation
[2025] EWCC 81
Parties
Claimant: Mr Mohammed Azam; First Defendant: Violet Developments LLP; Second Defendant: Secure Trust Bank Public Limited Company; Third Defendant: East End Homes Limited
Jurisdiction
England and Wales
Judgment Date
13 November 2025
Procedural Posture
Forfeiture Action (relief From Forfeiture) / Post Trial Judgment
Outcome
Relief from forfeiture granted to first and second Defendants on terms; EEH also granted relief on Sub-lease terms; Claimant awarded damages for delay and incomplete works; claim for £500,000 under Agreement for Lease dismissed.
Legal Topics
Forfeiture of Lease, Relief From Forfeiture, Construction of Lease Covenants, Damages for Breach of Lease, Waiver of Forfeiture, Statutory Discretion Under S.146 Law of Property Act 1925

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Parties

Mr Mohammed Azam

Claimant

Violet Developments LLP

First Defendant

Secure Trust Bank Public Limited Company

Second Defendant

East End Homes Limited

Third Defendant

Procedural Posture

Forfeiture Action (relief From Forfeiture) / Post Trial Judgment

  1. 1 Proper construction of obligations in Schedule 5 of the Lease, especially paragraphs 5.2.4 and 5.2.5.4
  2. 2 Whether Violet breached obligations to use 'all reasonable endeavours' and to complete works 'as soon as reasonably practicable'
  3. 3 Whether breaches were waived by the Claimant

Ratio Decidendi

The court held that the statutory discretion under s.146 Law of Property Act 1925 is sufficiently wide to permit the imposition of relief conditions addressing breaches and losses beyond those specified in the s.146 notice, where necessary to do equity and avoid unjust enrichment of the tenant. The only unremedied breach in the s.146 notice was failure to provide progress reports, but the court found it just to require compensation for delay and incomplete works as a condition of relief. The court rejected the Claimant's claim for £500,000 under the Agreement for Lease, finding no novation or assignment of that obligation to Violet. The court accepted the expert evidence as to the cost of...

Court Disposition

Relief from forfeiture granted to first and second Defendants on terms; EEH also granted relief on Sub-lease terms; Claimant awarded damages for delay and incomplete works; claim for £500,000 under Agreement for Lease dismissed.

Orders

  • Relief from forfeiture to Violet Developments LLP and Secure Trust Bank PLC on condition of payment of damages and completion of outstanding works to commercial premises within 6 months.
  • East End Homes Limited granted relief from forfeiture on terms of the Sub-lease.