Hennelly Properties Ltd has failed to overturn a High Court ruling awarding possession of Canal House, Catherine Wheel Road, Brentford, to AIB Group (UK) plc after Hennelly defaulted on the repayment of a loan secured on the property.
The Court of Appeal upheld the ruling of Evans-Lombe J that AIB was entitled to recover £676,000 under the terms of a mortgage, pursuant to a facility letter securing the loan upon Canal House and another property in Camden.
Hennelly had claimed that the mortgage was never completed, since the charges on the properties were conditional upon the loan moneys being advanced, and Hennelly in fact only received £376,000 of the £700,000 facility. Counsel Anthony Mann QC contended that only the smaller sum fell to be treated as validly lent, and argued that, in the circumstances, the subsequent appointment of receivers was invalid.
Dismissing the appeal, Chadwick LJ said it was an express term of the facility letter that there could be no draw-down of funds until the security documents were in place. He was satisfied that money had changed hands in accordance with the terms of the facility letter.
Hennelly Properties Ltd v AIB Group (UK) plc Court of Appeal (Pill and Chadwick LJJ and Collins J) 1 December 2000
Anthony Mann QC (instructed by Dewar Hogan) appeared for the appellant; Michael Briggs QC (instructed by Kennedys) appeared for the respondent.
PLS News 4/12/00
