Islam & Anor v Al-Sami & Anor

Islam & Anor v Al-Sami & Anor

The appellant failed to establish any indebtedness from Mrs Begum to himself, and the loan agreement could not be construed as securing existing or future debts. The agreement was not a genuine transaction but a delusive document created to protect Mrs Begum's property from execution by the Islams. The charge was therefore of no effect and did not secure any debt.

Parties
Claimant/respondent: Moynul Islam; Claimant/respondent: Monera Khatun Islam; First Defendant/appellant: Shahjahan Hossain Mohammad Al-Sami; Second Defendant: Salma Begum
Jurisdiction
England and Wales
Judgment Date
03 February 2011
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Loan Agreements, Equitable Charges, Priority of Charges, Forgery, Construction of Contracts
Property Law Contract Law Civil Procedure Loan Agreements Equitable Charges Priority of Charges Forgery Construction of Contracts

Case Brief

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Parties

Moynul Islam

Claimant/respondent

Monera Khatun Islam

Claimant/respondent

Shahjahan Hossain Mohammad Al-Sami

First Defendant/appellant

Salma Begum

Second Defendant

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the loan agreement between the appellant and Mrs Begum was valid and effective
  2. 2 Whether an equitable charge over Mrs Begum's leasehold flat stands as security for any indebtedness
  3. 3 Whether the loan agreement and charge were forgeries or delusive

Ratio Decidendi

The appellant failed to establish any indebtedness from Mrs Begum to himself, and the loan agreement could not be construed as securing existing or future debts. The agreement was not a genuine transaction but a delusive document created to protect Mrs Begum's property from execution by the Islams. The charge was therefore of no effect and did not secure any debt.

Court Disposition

appeal dismissed

Orders

  • The deputy judge's order is upheld.
  • The charge in favour of the appellant is of no effect.