Habib Bank v Tailor [1982] 1 WLR 1218

Written By Nicolas Heyes

Court: Court of Appeal

Basic Facts:

  • Parties: C (Customer), D (Bank Borrower).

  • Context: D overdrawn on a secured account. C demanded full repayment but sought possession of D’s property under the mortgage security.

Issue for the Court: When do AJA 1970 s.36 and AJA 1973 s.8 apply?

Held: The court upheld that a mortgagee's power of sale could be exercised without regard to the equitable interests of those not in possession unless their interests were protected by registration.

Oliver LJ

  • Application: Sections 36 and 8 provide protection to mortgagors facing default. Section 36 deals with mortgage possession, while s.8 concerns notice and other related issues.

Nicolas Heyes
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Greasley v Cooke [1980] 1 WLR 1306