E.ON UK Plc v Gilesports Ltd

E.ON UK Plc v Gilesports Ltd

Gilesports required Central Networks’ consent to assign the Sublease; consent was not unreasonably delayed as no valid application was served. The assignment was void for lack of registration, causing the legal estate to revert to Gilesports, who remained liable for tenant covenants. Section 17 LTCA 1995 did not limit Gilesports’ liability as it was not a former tenant but reverted to being tenant by operation of law.

Parties
Claimant: E. ON UK PLC; Defendant: Gilesports Limited
Jurisdiction
England and Wales
Judgment Date
31 July 2012
Procedural Posture
Civil Landlord and Tenant / Judgment After Trial
Outcome
Judgment for Claimant (E. ON UK PLC)
Legal Topics
Assignment of Lease, Consent to Assignment, Registration of Lease, Tenant Covenants, Section 17 Notices, Land Registration
Landlord and Tenant Property Law Assignment of Lease Consent to Assignment Registration of Lease Tenant Covenants Section 17 Notices Land Registration

Case Brief

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Parties

E. ON UK PLC

Claimant

Gilesports Limited

Defendant

Procedural Posture

Civil Landlord and Tenant / Judgment After Trial

Legal Issues

  1. 1 Whether Central Networks’ consent to the assignment (Transfer) was required under the Sublease
  2. 2 Whether Central Networks unreasonably delayed in giving consent to the Transfer
  3. 3 Effect of failure to register the Transfer at the Land Registry

Ratio Decidendi

Gilesports required Central Networks’ consent to assign the Sublease; consent was not unreasonably delayed as no valid application was served. The assignment was void for lack of registration, causing the legal estate to revert to Gilesports, who remained liable for tenant covenants. Section 17 LTCA 1995 did not limit Gilesports’ liability as it was not a former tenant but reverted to being tenant by operation of law.

Court Disposition

Judgment for Claimant (E. ON UK PLC)

Orders

  • Declaration that Gilesports remains tenant under the Sublease
  • Gilesports liable for arrears of rent and tenant covenants