Bagum v Hafiz & Anor

Bagum v Hafiz & Anor

The court does not have power under section 14 of TOLATA to order a beneficiary to sell or transfer their beneficial interest to another beneficiary, but does have power to direct trustees to sell the trust property to a particular beneficiary, including granting a right of pre-emption, as part of its wide discretion under TOLATA. The judge's order for sale with a right of pre-emption to Mr. Hafiz was within her jurisdiction and a proper exercise of discretion, having regard to the interests and wishes of the beneficiaries and the purposes of the trust.

Parties
Claimant/respondent: Bagum; 1st Defendant/respondent: Hafiz; 2nd Defendant/appellant: Hai
Jurisdiction
England and Wales
Judgment Date
22 July 2015
Procedural Posture
Civil Appeal / Appeal and Cross Appeal From Central London County Court Judgment
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Trusts of Land and Appointment of Trustees Act 1996 (tolata), Co Ownership, Court's Discretionary Powers, Order for Sale of Trust Property
Trusts Property Law Trusts of Land and Appointment of Trustees Act 1996 (tolata) Co Ownership Court's Discretionary Powers Order for Sale of Trust Property

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2
Sign in to unlock

Parties

Bagum

Claimant/respondent

Hafiz

1st Defendant/respondent

Hai

2nd Defendant/appellant

Procedural Posture

Civil Appeal / Appeal and Cross Appeal From Central London County Court Judgment

Legal Issues

  1. 1 Whether the court has power under section 14 of TOLATA to order a beneficiary to sell or transfer their beneficial interest to another beneficiary
  2. 2 Whether the court can direct trustees to sell trust property to particular beneficiaries without the consent of all beneficiaries
  3. 3 Whether the judge's exercise of discretion under TOLATA was proper

Ratio Decidendi

The court does not have power under section 14 of TOLATA to order a beneficiary to sell or transfer their beneficial interest to another beneficiary, but does have power to direct trustees to sell the trust property to a particular beneficiary, including granting a right of pre-emption, as part of its wide discretion under TOLATA. The judge's order for sale with a right of pre-emption to Mr. Hafiz was within her jurisdiction and a proper exercise of discretion, having regard to the interests and wishes of the beneficiaries and the purposes of the trust.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • Order of HHJ May QC affirmed: Property to be sold; Mr. Hafiz to have opportunity to purchase at court-determined price within 6 weeks, failing which open market sale with liberty for all beneficiaries to bid.