Royal Bank of Scotland Plc v Chandra & Anor (Rev 1)

Royal Bank of Scotland Plc v Chandra & Anor (Rev 1)

The statement by Mr Chandra that £700,000 would be enough to complete the project was an honest forecast, not a misrepresentation, and Mrs Chandra understood it as such; therefore, there was no undue influence or actionable misrepresentation, and the guarantee stands.

Parties
Claimant: Royal Bank of Scotland PLC; Defendant: Bala Perampalam Chandra; Defendant/appellant: Maria Perpetua Chandra
Jurisdiction
England and Wales
Judgment Date
02 March 2011
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Undue Influence, Misrepresentation, Personal Guarantees, Constructive Notice, Fiduciary Duties
Equity Contract Law Banking Law Undue Influence Misrepresentation Personal Guarantees Constructive Notice Fiduciary Duties

Case Brief

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Parties

Royal Bank of Scotland PLC

Claimant

Bala Perampalam Chandra

Defendant

Maria Perpetua Chandra

Defendant/appellant

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the first guarantee signed by Mrs Chandra was procured by undue influence or misrepresentation by her husband
  2. 2 Whether the bank was on constructive notice of undue influence or misrepresentation
  3. 3 Whether the bank complied with legal requirements for avoiding constructive notice

Ratio Decidendi

The statement by Mr Chandra that £700,000 would be enough to complete the project was an honest forecast, not a misrepresentation, and Mrs Chandra understood it as such; therefore, there was no undue influence or actionable misrepresentation, and the guarantee stands.

Court Disposition

appeal dismissed

Orders

  • The appeal by Mrs Chandra is dismissed.
  • The first guarantee and legal charge remain enforceable.