Folgender Holdings Ltd & Anor v Letraz Properties Ltd & Ors [2019] EWHC 2131 (Ch) (06 August 2019)

Folgender Holdings Ltd & Anor v Letraz Properties Ltd & Ors [2019] EWHC 2131 (Ch) (06 August 2019)

Letraz is contractually obliged to procure execution of a registrable second charge over Chesterfield Hill, provide information and accounts as reasonably necessary for oversight, and specific performance is warranted. Subsequent third-party rights, laches, and acquiescence do not bar relief. Defence is struck out in substantial part due to concessions and lack of coherent opposition.

Citation
[2019] EWHC 2131 (Ch)
Parties
Claimant: Folgendar Holdings Limited; Claimant: Elbogross SA; Defendant: Letraz Properties Limited; Defendant: Arbomo Financial Limited; Defendant: Mercantile Estate Holdings Limited; Defendant: Mr Salah Mussa
Jurisdiction
England and Wales
Judgment Date
06 August 2019
Procedural Posture
Summary Judgment and Strike Out Application / Judgment on Application
Outcome
Judgment for claimants
Legal Topics
Specific Performance, Injunction, Account of Profits, Security Interests, Loan Agreements, Strike Out of Pleadings
Contract Law Property Law Equity Specific Performance Injunction Account of Profits Security Interests Loan Agreements +1 more

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Parties

Folgendar Holdings Limited

Claimant

Elbogross SA

Claimant

Letraz Properties Limited

Defendant

Arbomo Financial Limited

Defendant

Mercantile Estate Holdings Limited

Defendant

Mr Salah Mussa

Defendant

Procedural Posture

Summary Judgment and Strike Out Application / Judgment on Application

Legal Issues

  1. 1 Whether Letraz is obliged to procure execution of a registrable second charge over Chesterfield Hill
  2. 2 Whether claimants are entitled to an injunction to prevent Letraz and Arbomo from undermining the ability to grant a second charge
  3. 3 Whether claimants are entitled to information and accounts regarding redevelopment and net profits

Ratio Decidendi

Letraz is contractually obliged to procure execution of a registrable second charge over Chesterfield Hill, provide information and accounts as reasonably necessary for oversight, and specific performance is warranted. Subsequent third-party rights, laches, and acquiescence do not bar relief. Defence is struck out in substantial part due to concessions and lack of coherent opposition.

Court Disposition

Judgment for claimants

Orders

  • Specific performance: Letraz to procure execution of registrable second charge over Chesterfield Hill securing £10 million loan and net profit share
  • Injunction (or undertaking): Letraz and Arbomo restrained from taking steps to undermine ability to grant second charge