The Funding Corporation Block Discounting Ltd v Lexi Holdings Plc & Anor [2011] EWHC 3101 (Ch) (25 November 2011)

The Funding Corporation Block Discounting Ltd v Lexi Holdings Plc & Anor [2011] EWHC 3101 (Ch) (25 November 2011)

TFC acquired proprietary interests by estoppel as equitable assignee of charges over all properties except the Tinsett properties. Barclays' right to set aside property transfers under Companies Act s320/322 was not released by the Deed of Release and has priority only over the Tinsett properties. TFC's interests in the other properties are protected as bona fide rights under s322(2)(b) and take priority in the proceeds of sale.

Citation
[2011] EWHC 3101 (Ch)
Parties
Claimant: The Funding Corporation Block Discounting Limited; First Defendant: Lexi Holdings Plc (in Administration); Second Defendant: Barclays Bank Plc
Jurisdiction
England and Wales
Judgment Date
25 November 2011
Procedural Posture
Chancery Division Proprietary Claim / Final Judgment
Outcome
Claim partly allowed
Legal Topics
Priority of Charges, Proprietary Estoppel, Voidable Transactions, Fraudulent Misrepresentation, Companies Act S320/322, Land Registration Act 2002
Property Law Equity Company Law Insolvency Priority of Charges Proprietary Estoppel Voidable Transactions Fraudulent Misrepresentation +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

The Funding Corporation Block Discounting Limited

Claimant

Lexi Holdings Plc (in Administration)

First Defendant

Barclays Bank Plc

Second Defendant

Procedural Posture

Chancery Division Proprietary Claim / Final Judgment

Legal Issues

  1. 1 Whether TFC acquired proprietary interests in the proceeds of sale of certain properties formerly owned by Lexi Holdings Plc
  2. 2 Whether Barclays' security interests have priority over TFC's claims
  3. 3 Effect of fraudulent loan agreements and estoppel

Ratio Decidendi

TFC acquired proprietary interests by estoppel as equitable assignee of charges over all properties except the Tinsett properties. Barclays' right to set aside property transfers under Companies Act s320/322 was not released by the Deed of Release and has priority only over the Tinsett properties. TFC's interests in the other properties are protected as bona fide rights under s322(2)(b) and take priority in the proceeds of sale.

Court Disposition

Claim partly allowed

Orders

  • TFC is entitled to the proceeds of sale of all properties except the Tinsett properties
  • Barclays is entitled to the proceeds of sale of the Tinsett properties