Eastbrook Holdings Ltd v Caskaway Ltd (2024) - Romford County Court - Rayan Imam
The subject property is an impressive Grade II listed pub. The Claimant landlord forfeited the lease on grounds of non-payment of rent. As at the date of trial, the rent arrears stood at approximately £300,000.
The Defendant resisted the claim for forfeiture. In his defence he advanced:
1) The Lease relied upon by the Claimant was not the ‘true lease’. The “true lease” that governed the relationship between the parties provided for more advantageous terms: a substantially lower annual rent and a 12-month rent-free period, in consideration of the Defendant’s agreement to carry out repair works.
2) The Lease relied upon by the Claimant in the proceedings had been entered into for an unlawful purpose, namely to secure funding from the Claimant’s lender.
3) In any event, there were no arrears of rent and he was in fact in credit to the tune of approximately £19k.
The court rejected the Defendant’s defence to forfeiture and Rayan secured a forthwith possession order.
