Parkash v Irani Finance Ltd: ChD 1970

A search by an intending chargee had not revealed the existence of a caution on the register which protected a charging order. When the chargee attempted to register the charge, the cautioner was informed. It objected to the registration.
Held: The charging order took priority over the later charge, which, being unregistered, took effect only in equity and was therefore necessarily subordinate to the earlier minor interest.
Plowman J said: ‘the appropriate form of protection for a charging order is a caution.’
Plowman J rejected the plaintiff’s argument based on the absence of notice, referring to s.59(6): ‘It is true, as was stressed in the argument before me, that what the ss. says is that a purchaser is not affected by notice, express, implied or constructive, of matters capable of protection by a caution and not so protected and that (unlike the case of a notice of lease under s.48(1) of the Act) it does not say in terms that a purchaser is affected by a notice of matters capable of protection by caution, which are so protected, but that, in my judgment, is implicit in the scheme of the Act and in the subsection.’


Plowman J


[1970] Ch 101


Administration of Justice Act 1956 35


England and Wales

Cited by:

CitedClark and Another v Chief Land Registrar and Another ChD 2-Dec-1992
The defendant had made a mistake resulting in an equitable chargee not being given proper opportunity to object to the registration of a further charge with priority. The chargee sought compensation from the defendant registrar.
Held: The . .
CitedGold Harp Properties Ltd v Macleod and Others CA 29-Jul-2014
The company appealed against an order re-instating to the register leases which the company said it had forfeited for non-payment of rent. After the forfeiture, the landlord had granted new leases. It appealed saying that exceptional circumstances . .
Lists of cited by and citing cases may be incomplete.

Registered Land

Updated: 04 June 2022; Ref: scu.536059