Cases - Packwood v 15 Beauchamp Place
Record details
- Name
- Packwood v 15 Beauchamp Place
- Date
- (1978)
- Citation
- 36 P & CR 112
- Legislation
- Keywords
- The fact that a lessor has commenced forfeiture proceedings may not justify them refusing a licence to assign to a responsible assignee.
- Summary
-
The defendant company was a lessee of business premises under a lease containing a covenant against assignment, except with the licence of the lessor, not to be unreasonably withheld in the case of a ‘responsible and respectable assignee.’
Under the lease, the lessor had a right of re-entry in the event of the liquidation of the lessee.
- On 15 January the lessee company passed a resolution to wind up.
- On 5 February the lessee's solicitors applied for a licence to assign to another company. Discussions followed the application.
- On 24 February the lessors, who had not previously known of the liquidation, wrote indicating their wish to exercise the right of re-entry and enclosing a section 146 notice.
Afterwards, the lessees offered guarantors for the proposed assignee, but the lessors contended that the question of assignment no longer arose. Foster J granted the lessees relief against forfeiture and an order that consent to the assignment had been unreasonably withheld.
Held
The judge dismissed the lessor's appeal. The lessees were entitled to seek relief after service of the section 146 notice, and the appellate court would not interfere with the trial judge's finding of fact as to whether the assignee was responsible and respectable.
A tenant may apply to the court for relief as soon as he/she receives the landlord's section 146 notice.