Patel & Anor v K&J Restaurants Ltd & Anor

Patel & Anor v K&J Restaurants Ltd & Anor

K&J Restaurants Ltd breached covenants by failing to act on reasonable suspicion of immoral use and by sharing occupation with MPC; both section 146 notices were valid; relief from forfeiture granted on condition of payment of indemnity costs and undertakings not to repeat breaches.

Parties
Claimant/appellant: Chandrakant Babubhai Patel; Claimant/appellant: Pratima Chandrakant Patel; Defendant/respondent: K&J Restaurants Ltd; Defendant: MP Catering Ltd
Jurisdiction
England and Wales
Judgment Date
28 October 2010
Procedural Posture
Civil Appeal / Appeal Judgment
Outcome
Appeal allowed; possession refused; relief from forfeiture granted on terms.
Legal Topics
Forfeiture of Lease, Relief From Forfeiture, Breach of Covenant, Illegal and Immoral Use, Alienation, Costs
Landlord and Tenant Property Law Contract Law Forfeiture of Lease Relief From Forfeiture Breach of Covenant Illegal and Immoral Use Alienation +1 more

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Parties

Chandrakant Babubhai Patel

Claimant/appellant

Pratima Chandrakant Patel

Claimant/appellant

K&J Restaurants Ltd

Defendant/respondent

MP Catering Ltd

Defendant

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether K&J Restaurants Ltd breached covenants in the lease by permitting immoral use and sharing occupation with MP Catering Ltd
  2. 2 Whether breaches were remediable and whether section 146 notices were valid
  3. 3 Whether relief from forfeiture should be granted and on what terms

Ratio Decidendi

K&J Restaurants Ltd breached covenants by failing to act on reasonable suspicion of immoral use and by sharing occupation with MPC; both section 146 notices were valid; relief from forfeiture granted on condition of payment of indemnity costs and undertakings not to repeat breaches.

Court Disposition

Appeal allowed; possession refused; relief from forfeiture granted on terms.

Orders

  • K&J Restaurants Ltd to pay Claimants' costs of proceedings below and three quarters of costs of appeal, assessed on indemnity basis.
  • Costs of including transcript in appeal bundles disallowed.