{"id":6104,"date":"2018-10-12T12:38:31","date_gmt":"2018-10-12T12:38:31","guid":{"rendered":""},"modified":"2019-06-17T19:14:01","modified_gmt":"2019-06-17T19:14:01","slug":"grand-junction-v-bates-1954","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/cases\/grand-junction-v-bates-1954.php","title":{"rendered":"Grand Junction Co v Bates [1954]"},"content":{"rendered":"<p><strong>Grand Junction Co v Bates [1954] 2 QB 160<\/strong><\/p>\n<p><strong>The effect of forfeiture of a lease on a mortgage.<\/strong><\/p>\n<p><strong>Facts: <\/strong><\/p>\n<p>The plaintiff, Grand Junction Canal Co, granted a lease to the first defendant, Bennett. This lease contained a covenant not to use the premises for any illegal or immoral purpose. The defendant assigned the lease with the plaintiff\u2019s consent to the second defendant, Bates. He also granted Bates a mortgage secured as a legal charge against the lease. Subsequently, Bates was convicted of running the premises as a brothel. The plaintiff applied for forfeiture of the lease due to the breach of covenant. Bennett, the mortgagee, asked for relief against forfeiture.<\/p>\n<h3 id=\"issues\">Issues<\/h3>\n<p>If the plaintiff had been able to forfeit the lease Bennett\u2019s charge would have been destroyed, as the lease would no longer have existed. Bennet had created the mortgage by executing a deed. Under s.87 <strong>Law of Property Act 1925<\/strong> a mortgage created in this way has the same \u2018protection, powers and remedies\u2019 as if it was a lease or sublease. Under s.146(4) of the <strong>1925 Act<\/strong>, a sublessee can claim relief against forfeiture. Therefore, Bennett claimed that he should be treated as a sublessee.<\/p>\n<h3 id=\"decision\">Decision\/Outcome<\/h3>\n<p>The effect of s.87 of the <strong>1925 Act<\/strong> was to give the mortgagee the same rights as if they were a sublessee. The court held that under s.146 the mortgagee could claim relief from forfeiture by the landlord as if he were a tenant or subtenant. The defendant Bennett had not known about the brothel and was in every way satisfactory as a tenant. Therefore, he was allowed to claim relief against forfeiture.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The plaintiff, Grand Junction Canal Co, granted a lease to the first defendant, Bennett. This lease contained a covenant&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[85],"class_list":["post-6104","post","type-post","status-publish","format-standard","hentry","category-cases","tag-uk-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Grand Junction Co v Bates [1954] | LawTeacher.net<\/title>\n<meta name=\"description\" content=\"The plaintiff, Grand Junction Canal Co, granted a lease to the first defendant, Bennett. 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