Fenland District Council v Sheppard and others [2011] EWHC 2829 (Ch); [2011] WLR (D) 316
“In making a vesting order, pursuant to section 320 of the Insolvency Act 1986, in favour of a statutory chargee whose charge ranked in priority to the mortgagees’ charge over the property, the court was not bound to set aside the mortgagees’ charge where the mortgagees did not themselves apply for a vesting order. Such an order would not effectively benefit only the mortgagees by extinguishing the statutory charge if it could be shown that the statutory chargee intended to preserve the benefit of its charge, or that the extinguishment of its charge would be against the statutory chargee’s interests, in which case there would be a presumption against extinguishment.”
WLR Daily, 3rd November 2011
Source: www.iclr.co.uk
