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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Gandesha& Anor v Gandesha & Ors [2020] EWHC 1743 (QB) (02 July 2020) URL: http://www.bailii.org/ew/cases/EWHC/QB/2020/1743.html Cite as: [2020] 4 WLR 120, [2020] EWHC 1743 (QB), [2020] WTLR 905 |
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QUEEN'S BENCH DIVISION
ON APPEAL FROM THE COUNTY COURT AT CENTRAL LONDON
HH Judge Wulwik
Claim No E10CL333
Strand, London, WC2A 2LL |
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B e f o r e :
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(1) HITESH KUMAR GANDESHA (2) JAYESH MAGANLAL GANDESHA |
Appellants |
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- and - |
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(1) NARENDRA MAGANLAL GANDESHA (2) SAILASKUMAR GANDESHA (3) AMIT GANDESHA (on behalf of the Estate of SURENDRA MAGANLAL GANDESHA, deceased) (4) VINESH GANDESHA (on behalf of the Estate of SURENDRA MAGANLAL GANDESHA, deceased) |
Respondent |
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Ms Hermione Rose Williams (instructed by Dominic Levent) for the Respondents
Hearing date: 24 June 2020
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Crown Copyright ©
COVID-19 Protocol: this judgment was handed down by the judge remotely by circulation to the parties' representatives by email and release to BAILII. The date and time for hand-down is deemed to be 10am on Thursday 2 July 2020.
Mrs Justice Andrews:
INTRODUCTION
Section 14
(1) Any person who is a trustee of land or has an interest in property subject to a trust of land may make an application to the court for an order under this section.
(2) On an application for an order under this section the court may make any such order
(a) relating to the exercise by the trustee of any of their functions (including an order relieving them of any obligation to obtain the consent of, or to consult, any person in connection with the exercise of any of their functions)
Section 15
(1) The matters to which the court is to have regard in determining an application for an order under section 14 include
(a) the intentions of the person or persons (if any) who created the trust,
(b) the purposes for which the property subject to the trust is held,
(c) the welfare of any minor who occupies or might reasonably be expected to occupy any land subject to the trust as his home, and
(d) the interests of any secured creditor of any beneficiary.
FACTUAL BACKGROUND
"(1) The Parties hereto DECLARE that they hold the property UPON TRUST to sell the same with power to postpone the sale and all the proceeds of sale (after deducting therefrom the costs of sale) and the net rents and profits until sale UPON TRUST for the Parties as tenants in common in the following proportions:
(a) as to the balance to divide the same:
a. as to 20% for Surendra Gandesha absolutely
b. as to 20% for Jayesh Maganlal Gandesha absolutely
c. as to 20% for Hitesh Kumar Gandesha absolutely
d. as to 20% for Narendra Kumar Maganlal Gandesha absolutely
e. as to 20% for Sailaskumar Gandesha absolutely.
(2) The Parties hereby declare that they have purchased the Property as a home for all of the 5 brothers in clause 1 (a) above and for their respective families and during such period as it shall be the home for all of those persons.
(3) The Property is to be kept in good and substantial repair by the Parties jointly who agree to pay equally for the general maintenance, upkeep and for the usual outgoings of the Property.
(4) (a) The Parties hereby declare that the Property shall not be sold whilst any of the Parties remain alive except if all the Parties that remain alive agree unanimously in writing to the sale of the Property.
(c) no sole party or their family shall have a right to demand that the Property be sold.
(6) for the avoidance of doubt, the Parties hereby reserve the right to transfer their share of the Property onto whomsoever they wish."
"We have spoken, and you are all fully aware that in recent months the situation in the family home has become untenable for all parties to remain living there. We do not propose going into detail in this letter as we are all aware of the background.
Regrettably, the family circumstances are now radically different to the circumstances at the time of execution of the Declaration of Trust detailing our respective interests in the property. The situation envisaged by the Declaration of Trust and that which the Trust was designed to protect was that the property should be a family home for all of us and our families but that situation no longer exists "
"The fact that the claimants have chosen to move out of the Property and purchase their own homes elsewhere is no reason to override the terms of the 2015 declaration of trust and the clear intention of the parties."
CONSTRUCTION OF THE DECLARATION OF TRUST
"Pre-1997 authorities often treated the trust for sale as a mere conveyancing necessity, with little influence on the just and equitable result. If a trust for sale is expressly imposed after 1996, then since it is no longer required, the court should give more weight to it than before, as an intention that the land should be sold is manifested."
"If the trustees for sale refuse to sell or to exercise any of the powers conferred by either of the last two sections, or any requisite consent cannot be obtained, any person interested may apply to the court for a vesting or other order for giving effect to the proposed transaction, or for an order directing the trustees the sale to give effect thereto, and the court may make such order as it thinks fit."
"The conversion of the property into a form in which both parties can enjoy their rights equally is the prime object of the trust; the preservation of the house as a home for one of them singly is not an object at all. If the true object of the trust is made paramount as it should be, there is only one order that can be made." [Emphasis added].
"The decision [in that case] is both clear and unsurprising. The role of the court is to act with rather than against the parties' agreement. Equity neither compels nor requires any other approach. If there were some development which changed matters significantly compared with the position at the time of the agreement, it may be that this would justify a different result on the basis that the new situation was outside the contractual expectation or what the parties had in mind when they entered into the agreement. In the course of argument I gave as an example where the income obtainable from a property was no longer sufficient to maintain it so that the property was a wasting asset declining significantly in value, but nothing of that sort has been shown to obtain here."
EXERCISE OF DISCRETION UNDER S.14
THE CLAIM FOR OCCUPATION RENT
"If a tenant in common leaves the property voluntarily but would be welcomed back and would be in a position to enjoy his or her right to occupy, it would normally not be fair or equitable to the remaining tenant in common to charge him or her with occupation rent."
"The basic principle that a tenant in common is not liable to pay an occupation rent by virtue merely of his being in sole occupation of the property does not apply in the case where an association similar to a matrimonial association has broken down and one party is, for practical purposes, excluded from the family home".
"cannot reasonably be expected to live in the same house as those that have in fact made false allegations of forgery and fraud, have made complaints to ACCA which could, if upheld, have destroyed [Jayesh's] career; [and] presented a petition pursuant to section 994 of the Companies Act 2006 containing serious allegations of impropriety and fraud against either [Hitesh or Jayesh] or both."
It was submitted that in those circumstances, on the criteria set out in Davis v Jackson, this was a case in which occupation rent should be paid, subject to a discount in respect of the fact that Hitesh and Jayesh had maintained some limited form of occupation, even if they cannot live there.
CONCLUSION