Rahman & Ors v HSBC Bank Plc & Ors [2012] EWHC 11 (Ch) (17 January 2012)

Rahman & Ors v HSBC Bank Plc & Ors [2012] EWHC 11 (Ch) (17 January 2012)

The court found no binding oral agreement or representation by HSBC to extend loan facilities to 15 years. The facility letters and written terms governed the relationship. There was insufficient evidence of promissory estoppel or unfairness under the Consumer Credit Act. The appointment of receivers was valid and...

Source-derived case information.

Citation
[2012] EWHC 11 (Ch)
Parties
Claimant: Shafik Rahman; Claimant: Salma Rahman; Claimant: Landmark Properties Limited; Claimant: Landmark Properties (GB) Limited; Claimant: Shafik Rahman (as Trustee of Dr Rahman's Grandchildren's Settlement 1992 No 1); Claimant: Salma Rahman (as Trustee of Dr Rahman's Grandchildren's Settlement 1992 No 1); Claimant: Dr Mohammed Abdur Rahman; Claimant: Furrok Rahman; Defendant: HSBC Bank PLC; Defendant: Andrew Donald Rodger; Defendant: Roger Nicholas Phillips
Jurisdiction
England and Wales
Judgment Date
17 January 2012
Procedural Posture
Chancery Division Commercial Dispute / Final Judgment
Outcome
Claim dismissed; counterclaim allowed
Legal Topics
Appointment of Receivers, Facility Letters, Oral Agreements, Promissory Estoppel, Unfair Relationship Under Consumer Credit Act, Security Enforcement
Banking Law Contract Law Property Law Consumer Credit Appointment of Receivers Facility Letters Oral Agreements Promissory Estoppel +2 more

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Summary, issues, holding and outcome

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Parties

Shafik Rahman

Claimant

Salma Rahman

Claimant

Landmark Properties Limited

Claimant

Landmark Properties (GB) Limited

Claimant

Shafik Rahman (as Trustee of Dr Rahman's Grandchildren's Settlement 1992 No 1)

Claimant

Salma Rahman (as Trustee of Dr Rahman's Grandchildren's Settlement 1992 No 1)

Claimant

Dr Mohammed Abdur Rahman

Claimant

Furrok Rahman

Claimant

HSBC Bank PLC

Defendant

Andrew Donald Rodger

Defendant

Roger Nicholas Phillips

Defendant

Procedural Posture

Chancery Division Commercial Dispute / Final Judgment

Legal Issues

  1. 1 Whether HSBC agreed to extend loan facilities to 15 years by oral agreement or representation
  2. 2 Whether HSBC is estopped from enforcing facility terms by promissory estoppel
  3. 3 Whether the appointment of receivers was unfair under Consumer Credit Act 1974 sections 140A and 140B

Ratio Decidendi

The court found no binding oral agreement or representation by HSBC to extend loan facilities to 15 years. The facility letters and written terms governed the relationship. There was insufficient evidence of promissory estoppel or unfairness under the Consumer Credit Act. The appointment of receivers was valid and contractual.

Court Disposition

Claim dismissed; counterclaim allowed

Orders

  • Receivership appointments by HSBC upheld
  • HSBC entitled to sums due under facilities