Dhillon v Barclays Bank Plc & Anor [2020] EWCA Civ 619 (14 May 2020)

Dhillon v Barclays Bank Plc & Anor [2020] EWCA Civ 619 (14 May 2020)

The Court held that there were exceptional circumstances justifying non-rectification of the Register: Mrs Dhillon never owned the freehold, could not have afforded to buy the property, and would be unjustly enriched if the charge were removed. The title vested in her was subject to the Barclays Bank charge, and rectification would create a windfall by giving her an unencumbered property she never paid for. The existence of an indemnity for Barclays Bank was not decisive. Accordingly, the appeal was dismissed and the Register was not rectified.

Citation
[2020] EWCA Civ 619
Parties
Appellant/claimant: Simer Kaur Dhillon; 1st Respondent/defendant: Barclays Bank PLC; 2nd Respondent/defendant: Chief Land Registrar
Jurisdiction
England and Wales
Judgment Date
14 May 2020
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Rectification of Land Register, Mortgage Fraud, Exceptional Circumstances Under Land Registration Act 2002, Indemnity Under Land Registration Act 2002, Doctrine of Illegality
Property Law Land Registration Equity and Trusts Rectification of Land Register Mortgage Fraud Exceptional Circumstances Under Land Registration Act 2002 Indemnity Under Land Registration Act 2002 Doctrine of Illegality

Case Brief

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Parties

Simer Kaur Dhillon

Appellant/claimant

Barclays Bank PLC

1st Respondent/defendant

Chief Land Registrar

2nd Respondent/defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the Land Register should be rectified to remove a charge in favour of Barclays Bank PLC due to mortgage fraud and forged transfers
  2. 2 Whether there are 'exceptional circumstances' under paragraph 3(3) of Schedule 4 to the Land Registration Act 2002 justifying non-rectification
  3. 3 Whether Mrs Dhillon's reliance on a void transfer constitutes illegality or bars her claim

Ratio Decidendi

The Court held that there were exceptional circumstances justifying non-rectification of the Register: Mrs Dhillon never owned the freehold, could not have afforded to buy the property, and would be unjustly enriched if the charge were removed. The title vested in her was subject to the Barclays Bank charge, and rectification would create a windfall by giving her an unencumbered property she never paid for. The existence of an indemnity for Barclays Bank was not decisive. Accordingly, the appeal was dismissed and the Register was not rectified.

Court Disposition

Appeal dismissed

Orders

  • The order of the High Court refusing rectification of the Register is upheld.
  • No rectification of the Register; Barclays Bank charge remains.