On an interpleader summons by a bank, the question asked was whether the proceeds of sale held by the bank of properties mortgaged should be paid to the mortgagee or paid into court because the mortgagor had a cross-claim against the mortgagee.
Held: The mortgage remained in being despite the existence of the cross-claim and the mortgagee was entitled to the proceeds.
A mortgagor is not entitled to claim to set off an unliquidated claim for damages against a debt, secured by a mortgage, so as to prevent its enforcement and the application of the sale proceeds in discharge of the secured debt.
Megarry J
[1970] 3 All ER 950, [1971] 1 WLR 43
England and Wales
Cited by:
Cited – Platts v Trustees Savings Bank Plc CA 13-Feb-1998
A counterclaim for negligent sale was a valid claim allowing potential against repossessing bank but would not make bank’s claim unliquidated. The Judge could properly hold that there was a liquidated and unsecured debt the subject of the statutory . .
Lists of cited by and citing cases may be incomplete.
Banking
Updated: 20 January 2022; Ref: scu.184796
