swarb.co.uk - law index
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Banking - From: 1992 To: 1992
This page lists 9 cases, and was prepared on 03 April 2018.
Lloyds and Scottish Finance Ltd v Cyril Lord Carpet Sales Limited [1992] BCLC 609
1992
HL
Lord Wilberforce, Lord Scarman
Contract, Banking, Company, Insolvency
Lord Wilberforce consideried whether certain assignment of book debts were in substance absolute assignments by way of sale or assignments by way of charge and would be void against a liquidator for non-registration under the Companies Act. He said: "My Lords, the fact that the transaction consisted essentially in the provision of finance and the similarity in result between a loan and a sale, to all of which I have drawn attention, gives to the appellants' arguments an undoubted force. It is only possible, in fact, to decide whether they are correct by paying close regard to what the precise contractual arrangements between them and the respondents were." and "it has to be appreciated that block discounting is essentially a method of providing finance. Commercially and in its economic result, it may not differ from lending money at interest: the 'discounting charge', which represents the finance house's profit, is stated in term of so much per cent per annum, which percentage is no doubt based upon current interest rates. Legally, however, there is no doubt that discounting is not treated as the lending of money and that the asset discounted is not considered as the subject of a charge."
1 Citers
Bank of England v Riley [1992] Ch 475
1992
Banking, Criminal Practice
Exercise of the right of privilege against self-incrimination.
1 Citers
Westfield Holdings Ltd v Australian Capital Television (1992) 32 NSWLR 194; 5 BPR 11,615
1992
Young J
Commonwealth, Banking, Equity
The court concluded, after looking at whether there had been a clog on the equity of redemption in an arm's length commercial mortgage transaction where a mortgagee had obtained the right to purchase the whole of the mortgaged property, that: "There does not appear to be any commercial reason why, in 1992, the court should invalidate any transaction merely because a mortgagee obtains a collateral advantage or seeks to purchase a mortgage property. Quite obviously, equity must intervene if there is unconscionable conduct. Again equity must intervene in a classic case where it can see that a necessitous borrower it not, truly speaking, a free borrower.
In my view, in 1992, the rule [concerning clogs on the equity of redemption] only applies where the mortgagee obtains a collateral advantage which in all the circumstances is either unfair or unconscionable. It may be that the court presumes from the mere fact of a collateral advantage that the transaction is unconscionable unless there is evidence to the contrary, but the principle does not extend to invalidate automatically cases in which the mortgagee has obtained the right to purchase the whole or part of the mortgaged property in certain circumstances or has obtained a collateral advantage where the circumstances show that there has been no unfairness or unconscionable conduct."
Re Atlantic Medical Ltd [1992] BCC 653
1992
Vinelott J
Banking
A charge was granted over hire-purchase agreements, sub-leases and rentals of leased equipment. The charge extended to such agreements as the chargor might enter into in the future. Held: Applying Atlantic computers, the charge was a fixed charge.
1 Cites
1 Citers
Barclays Bank plc v Quincecare Ltd [1992] 4 All ER 363
1992
QBD
Steyn J
Banking
The relationship of banker and customer is that of agent and principal: "Primarily, the relationship between a banker and customer is that of debtor and creditor. But quoad the drawing and payment of the customer's cheques as against the money of the customer's in the banker's hands the relationship is that of principal and agent." and "In my judgment it is an implied term of the contract between the bank and its customer that the bank will observe reasonable skill and care in and about executing the customer's orders. Moreover, notwithstanding what was said in Tai Hing Cotton Mill Ltd v Liu Chong Hing Bank Ltd [1986] AC 80 at 107, a banker may in a case such as the present be sued in tort as well as contract: see Midland Bank v Hett Stubbs & Kemp [1979] Ch 384. But the duties in tort and contract are coextensive, and in the context of the present case nothing turns on the question whether the case is approached in contract or tort."
. . And "it is right to say, that trust, not distrust, is also the basis of a bank's dealings with its customers. And full weight must be given to this consideration before one is entitled, in a given case, to conclude that the banker had reasonable grounds for thinking that the order was part of a fraudulent scheme."
1 Cites
1 Citers
Crockfords Club Ltd v Mehta; CA 8-Jan-1992 - Gazette, 08 January 1992; [1992] 1 WLR 355
Barclays Bank Plc v Khaira and Another; ChD 6-May-1992 - Gazette, 06 May 1992; [1992] 1 WLR 623
Barclays Bank Plc v O'Brien and Another; CA 22-May-1992 - Gazette, 15 July 1992; [1992] 4 All ER 983; [1993] QB 109
Depositors Protection Board v Dalia and Another Gazette, 18 November 1992
18 Nov 1992
ChD
Contract, Banking, Financial Services
Equitable assignees of deposits in a bank where those deposits were protected under the scheme, were entitled to the compensation which would have been paid to the beneficial owners.
Banking Act 1987 59(1)(a)
1 Citers
