Cheltenham & Gloucester Building Society v Krausz & Anor [1996] EWCA Civ 780 (22nd October, 1996)

Cheltenham & Gloucester Building Society v Krausz & Anor [1996] EWCA Civ 780 (22nd October, 1996)

The County Court has no jurisdiction, whether statutory or inherent, to suspend a warrant for possession of a mortgaged dwelling house to allow the mortgagor to apply for an order for sale under s.91(2) Law of Property Act 1925 where the sale proceeds will not discharge the mortgage debt. The statutory power to...

Source-derived case information.

Citation
[1996] EWCA Civ 780
Parties
Plaintiff/appellant: Cheltenham & Gloucester Building Society; Defendant/respondent: Aaron Krausz; Defendant/respondent: Rebecca Krausz
Jurisdiction
England and Wales
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment on Appeal From Shoreditch County Court
Outcome
Appeal allowed
Legal Topics
Mortgage Possession, Jurisdiction to Suspend Possession, Order for Sale Under Law of Property Act 1925 S.91(2), Administration of Justice Act 1970 S.36, Negative Equity, Inherent Jurisdiction of Court
Property Law Civil Procedure Mortgage Possession Jurisdiction to Suspend Possession Order for Sale Under Law of Property Act 1925 S.91(2) Administration of Justice Act 1970 S.36 Negative Equity Inherent Jurisdiction of Court

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Parties

Cheltenham & Gloucester Building Society

Plaintiff/appellant

Aaron Krausz

Defendant/respondent

Rebecca Krausz

Defendant/respondent

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment on Appeal From Shoreditch County Court

Legal Issues

  1. 1 Whether the County Court has jurisdiction to suspend a warrant for possession of a dwelling house to allow the mortgagor to apply for an order for sale under s.91(2) Law of Property Act 1925, where the sale proceeds will not discharge the mortgage debt

Ratio Decidendi

The County Court has no jurisdiction, whether statutory or inherent, to suspend a warrant for possession of a mortgaged dwelling house to allow the mortgagor to apply for an order for sale under s.91(2) Law of Property Act 1925 where the sale proceeds will not discharge the mortgage debt. The statutory power to suspend possession is strictly limited to cases where the mortgagor can pay the arrears or the whole debt within a reasonable period, and there is no wider inherent jurisdiction to do so.

Court Disposition

Appeal allowed

Orders

  • Application to adduce further evidence refused
  • Stay of execution of warrant for possession set aside