UCB Bank Ltd Plc v Hire Foulis Ltd & Anor [1998] ScotCS 77 (25 November 1998)

UCB Bank Ltd Plc v Hire Foulis Ltd & Anor [1998] ScotCS 77 (25 November 1998)

Rents paid to the liquidator before the security holder entered into possession do not form part of the security subjects and cannot be recovered by the security holder, as the right to such rents is assigned only upon taking possession under the Conveyancing and Feudal Reform (Scotland) Act 1970 and under general law.

Citation
[1998] ScotCS 77
Parties
Pursuers and Respondents: UCB Bank Limited plc; Defenders and Appellants: Hire Foulis Limited (In Liquidation); Defenders and Appellants: David J. Hill
Jurisdiction
Scotland
Judgment Date
25 November 1998
Procedural Posture
Appeal / Appeal From Interlocutor of the Sheriff at Glasgow Dated 12 January 1998
Outcome
Appeal sustained; interlocutor of the sheriff recalled; appellants' first plea-in-law sustained; respondents' first plea-in-law repelled; action dismissed.
Legal Topics
Heritable Security, Standard Security, Rents and Fruits of Security Subjects, Liquidation, Enforcement of Security Rights
Property Law Insolvency Law Heritable Security Standard Security Rents and Fruits of Security Subjects Liquidation Enforcement of Security Rights

Case Brief

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Parties

UCB Bank Limited plc

Pursuers and Respondents

Hire Foulis Limited (In Liquidation)

Defenders and Appellants

David J. Hill

Defenders and Appellants

Procedural Posture

Appeal / Appeal From Interlocutor of the Sheriff at Glasgow Dated 12 January 1998

Legal Issues

  1. 1 Whether a heritable security holder is entitled to recover rents paid to a liquidator before the security holder entered into possession
  2. 2 Whether such rents form part of the security subjects under general law and the Conveyancing and Feudal Reform (Scotland) Act 1970

Ratio Decidendi

Rents paid to the liquidator before the security holder entered into possession do not form part of the security subjects and cannot be recovered by the security holder, as the right to such rents is assigned only upon taking possession under the Conveyancing and Feudal Reform (Scotland) Act 1970 and under general law.

Court Disposition

Appeal sustained; interlocutor of the sheriff recalled; appellants' first plea-in-law sustained; respondents' first plea-in-law repelled; action dismissed.

Orders

  • Recall the interlocutor of the sheriff dated 12 January 1998
  • Sustain the appellants' first plea-in-law