WESTFOOT INVESTMENTS Ltd against EUROPEAN PROPERTY HOLDINGS INCORPORATED& [2015] ScotSC 58 (02 September 2015)

WESTFOOT INVESTMENTS Ltd against EUROPEAN PROPERTY HOLDINGS INCORPORATED& [2015] ScotSC 58 (02 September 2015)

The statutory protections for residential property under the Home Owner and Debtor Protection (Scotland) Act 2010 do not apply to corporate borrowers such as the defender. The pursuer complied with all relevant statutory notice and pre-action requirements. The defender is in default, has provided no credible explanation or repayment, and the pursuer is entitled to possession and related remedies under the 1970 and 1894 Acts. The interest rate and default charges were not shown to be unfair or unconscionable in the context of commercial lending.

Citation
[2015] ScotSC 58
Parties
Pursuer: Westfoot Investments Limited; Defender: European Property Holdings Incorporated
Jurisdiction
Scotland
Judgment Date
02 September 2015
Procedural Posture
Summary Application Under the Conveyancing and Feudal Reform (scotland) Act 1970 – Section 24 and the Heritable Securities (scotland) Act 1894 / Judgment After Proof
Outcome
Decree granted in favour of the pursuer for possession and related remedies; crave for ejection refused as unnecessary.
Legal Topics
Enforcement of Standard Security, Calling Up Procedure, Ejection, Pre Action Requirements, Debtor Protection, Interest Rates in Default, Corporate Borrower Protections
Property Law Secured Lending Civil Procedure Enforcement of Standard Security Calling Up Procedure Ejection Pre Action Requirements Debtor Protection +2 more

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Parties

Westfoot Investments Limited

Pursuer

European Property Holdings Incorporated

Defender

Procedural Posture

Summary Application Under the Conveyancing and Feudal Reform (scotland) Act 1970 – Section 24 and the Heritable Securities (scotland) Act 1894 / Judgment After Proof

Legal Issues

  1. 1 Whether the pursuer is entitled to possession and ejection under the standard security and heritable securities legislation
  2. 2 Whether the statutory pre-action requirements and notices were complied with
  3. 3 Whether the Home Owner and Debtor Protection (Scotland) Act 2010 protections apply to a corporate borrower

Ratio Decidendi

The statutory protections for residential property under the Home Owner and Debtor Protection (Scotland) Act 2010 do not apply to corporate borrowers such as the defender. The pursuer complied with all relevant statutory notice and pre-action requirements. The defender is in default, has provided no credible explanation or repayment, and the pursuer is entitled to possession and related remedies under the 1970 and 1894 Acts. The interest rate and default charges were not shown to be unfair or unconscionable in the context of commercial lending.

Court Disposition

Decree granted in favour of the pursuer for possession and related remedies; crave for ejection refused as unnecessary.

Orders

  • Finds and declares the pursuer has right to enter into possession of 6B Gloucester Square, Edinburgh and exercise all powers of a creditor in lawful possession under s24(1B) of the 1970 Act.
  • Grants warrant to the pursuer to enter into possession of 6B Gloucester Square, Edinburgh, to receive and recover rents, and exercise all powers of a creditor in lawful possession.