Shah v Shah: CA 10 Apr 2001

The court was asked as to the enforceability of a document under the terms of which the defendants were to make a payment of pounds 1.5 million to the claimant. The document was described as a deed and provided for each defendant to sign in the presence of a witness. In the event, although the ‘witness’ signed shortly after the defendants, he did so without having been present when they signed. When, therefore, the claimant brought proceedings against them, the defendants disputed the claim on the basis that the ‘deed’ had not been validly executed.
Held: The defendants were estopped from denying that they had signed the document in the witness’s presence. Public policy could not be used to disallow a party from asserting that a deed was valid despite the fact that the signature had not been properly witnessed, even though it was in the nature of the deed that such witnessing was required by law. Here the witness signature had not been present when he added his signature. The circumstances which might give rise to such a claim would often be solely with the party seeking to avoid liability under a deed, and being permitted to deny his deed would lead to uncertainty and fraud. The party had presented it as his own and properly attested deed and could be estopped from denying it.
Pill LJ said: ‘I bear in mind the clarity of the language of section 1(2) and (3) and also that the requirement for attestation is integral to the requirement for signature in that the validity of the signature is stipulated to depend on the presence of the attesting witness. I also accept that attestation has a purpose in that it limits the scope for disputes as to whether the document was signed and the circumstances in which it was signed. The beneficial effect of the requirement for attestation of the signature in the manner specified in the statute is not in question. It gives some, but not complete, protection to other parties to the deed who can have more confidence in the genuineness of the signature by reason of the attestation. It gives some, but not complete, protection to a potential signatory who may be under a disability, either permanent or temporary. A person may aver in opposition to his own deed that he was induced to execute it by fraud, misrepresentation or, as was unsuccessfully alleged in the present case, duress and the attestation requirement is a safeguard.
I have, however, come to the conclusion that there was no statutory intention to exclude the operation of an estoppel in all circumstances or in circumstances such as the present. The perceived need for formality in the case of a deed requires a signature and a document cannot be a deed in the absence of a signature. I can detect no social policy which requires the person attesting the signature to be present when the document is signed. The attestation is at one stage removed from the imperative out of which the need for formality arises. It is not fundamental to the public interest, which is in the requirement for a signature. Failure to comply with the additional formality of attestation should not in itself prevent a party into whose possession an apparently valid deed has come from alleging that the signatory should not be permitted to rely on the absence of attestation in his presence. It should not permit a person to escape the consequences of an apparently valid deed he has signed, representing that he has done so in the presence of an attesting witness, merely by claiming that in fact the attesting witness was not present at the time of signature. The fact that the requirements are partly for the protection of the signatory makes it less likely that Parliament intended that the need for them could in all circumstances be used to defeat the claim of another party.
Having regard to the purposes for which deeds are used and indeed in some cases required, and the long-term obligations which deeds will often create, there are policy reasons for not permitting a party to escape his obligations under the deed by reason of a defect, however minor, in the way his signature was attested. The possible adverse consequences if a signatory could, months or years later, disclaim liability upon a purported deed, which he had signed and delivered, on the mere ground that his signature had not been attested in his presence, are obvious. The lack of proper attestation will be peculiarly within the knowledge of the signatory and, as Sir Christopher Slade observed in the course of argument, will often not be within the knowledge of the other parties.
In this case the document was described as a deed and was signed. A witness, to whom the third and fourth defendants were well known, provided a form of attestation shortly afterwards and the only failure was that he did so without being in the presence of the third and fourth defendants when they signed.’

Judges:

Pill LJ, Tuckey LJ and Sir Christopher Slade

Citations:

Times 15-May-2001, [2002] QB 35, [2001] EWCA Civ 527, [2001] 3 WLR 31, [2001] 4 All ER 138

Links:

Bailii

Statutes:

Law of Property (Miscellaneous Provisions) Act 1989 1

Jurisdiction:

England and Wales

Citing:

Leave givenShah v Shah and others CA 7-Mar-2001
Renewed application for permission to appeal – whether deed validly signed. . .

Cited by:

CitedWilson v Truelove ChD 25-Mar-2003
The claimants requested a declaration that an option to repurchase land was void under the 1964 Act.
Held: The option to repurchase land was prima facie void. The right arose on the coming into existence of the agreement, or at the latest on . .
CitedCobbe v Yeomans Row Management Ltd and Others ChD 25-Feb-2005
Principles for Proprietary Estoppel
A developer claimed to have agreed that upon obtaining necessary planning permissions for land belonging to the respondents, he would purchase the land at a price reflecting its new value. The defendant denied that any legally enforceable agreement . .
CitedActionstrength Limited v International Glass Engineering In Gl En SpA and others HL 3-Apr-2003
Actionstrength agreed with Inglen to provide construction staff to build a factory for St-Gobain. Inglen failed to pay. Actionstrength claimed against for the amount due. Inglen went into liquidation. The claim was now against St-Gobain. The claim . .
CitedIesini and Others v Westrip Holdings Ltd and Others ChD 16-Oct-2009
The claimants were shareholders in Westrip, accusing the Defendant directors of deliberately engaging in a course of conduct which has led to Westrip losing ownership and control of a very valuable mining licence and which, but for their . .
CitedNo1 West India Quay (Residential) Ltd v East Tower Apartments Ltd ChD 6-Oct-2016
Consent to assignment – delay
Tenants under long residential leases challenged the refusal of the landlord to consent to particular assignments of apartments. The leases contained provisions saying that such consent was not to be unreasonably withheld. The landlord now appealed . .
ExplainedBriggs and Others v Gleeds (Head Office) and Others ChD 15-Apr-2014
The court was asked whether certain documents constituting a pension scheme had been effectively executed. They had been signed, but the signatures lacked the necessary witnessing. The scheme members claimed estoppel against the signatories.
DistinguishedBank of Scotland Plc v Waugh and Others ChD 21-Jul-2014
The defendants had charged a property to the claimant bank to secure a guarantee of borrowings. The signatures were not witnessed as required under section 1(3) of the 1989 Act, and there were other misdescriptions. The bank sought a declaration as . .
Lists of cited by and citing cases may be incomplete.

Land, Estoppel

Updated: 31 May 2022; Ref: scu.147505