Forfeiture

Citation

(1998), "Forfeiture", Property Management, Vol. 16 No. 3. https://doi.org/10.1108/pm.1998.11316cab.026

Forfeiture

Forfeiture

Kataria v. Safeland plc [1998] 05 EG 155

Briefly, the appellants in this case had acquired the reversion to premises where the respondent had a tenancy of ground floor business premises. The respondent at that time had been in arrears with his rent and the appellants on taking an assignment of the reversion had expressly assigned back to the assignor the right to pursue these arrears of rent.

The assignments had been completed on 14 November 1995. Two days later, at approximately 5am on the morning of 16 November, the appellants re-took possession of the premises by way of peaceable re-entry, with the assistance of certified bailiffs. Was this action lawful? The judge at first instance thought not, since at the time of the peaceable re-entry the landlord who had thus acted to forfeit the lease was not in fact owed any money. However, the Court of Appeal disagreed: at the time of the appellants' action the tenant had been in breach of his covenant to pay rent, and the appellants had been entitled to forfeit the lease.