Ghana Commercial Bank v Chandiram: PC 1960

The bank made an advance to the owner of property in Accra which was used to pay off his indebtedness to Barclays (DC and O) Ltd, secured by an equitable mortgage. The owner executed a legal mortgage in favour of the Ghana Bank, but this was invalidated by a previous attachment of the property by a creditor.
Held: The Ghana Bank was entitled to be subrogated to the equitable mortgage which had been paid off. ‘It is not open to doubt that where a third party pays off a mortgage he is presumed, unless the contrary appears, to intend that the mortgage shall be kept alive for his own benefit.’
Lord Jenkins
[1960] AC 732

  • Cited – Butler v Rice 1910
    The wife owned a Bristol property and a Cardiff property subject to a andpound;450 charge in favour of a bank with whom the title deeds had been deposited. The husband asked the plaintiff to lend him andpound;450 to pay off the mortgage. The . .
    [1910] Ch 277

Cited by:

  • Cited – UCB Group Ltd v Hedworth CA 4-Dec-2003
    The defendant challenged the claimant’s right to possession under a legal charge. She appealed a finding that she had not established the undue influence of her husband, a solicitor.
    Held: A lender who received a voidable security was entitled . .
    [2003] EWCA Civ 1717, Times 09-Jan-04, Gazette 29-Jan-04
  • Cited – Boscawen and Others v Bajwa and Others; Abbey National Plc v Boscawen and Others CA 10-Apr-1995
    The defendant had charged his property to the Halifax. Abbey supplied funds to secure its discharge, but its own charge was not registered. It sought to take advantage of the Halifax’s charge which had still not been removed.
    Held: A mortgagee . .
    Gazette 01-Jun-95, Independent 23-May-95, Times 25-Apr-95, [1996] 1 WLR 328, [1995] 4 All ER 769, [1995] EWCA Civ 15

These lists may be incomplete.
Updated: 09 December 2020; Ref: scu.190508