Leon v Her Majesty's Attorney General and others

Landlord and tenant – Disclaimer of lease. The second defendant landlord succeeded in its appeal against an order vesting a lease of a flat in London in the claimant, under s 1017 of the Companies Act 2006. The lease had been used as security under a mortgage transferred to the third defendant mortgage company (Kensington), in respect of which the claimant was co-mortgagor. The Crown had disclaimed the lease after the dissolution of a company associated with the claimant, to which the lease had been assigned. The Chancery Division held that the claimant was not 'entitled' to the lease and, accordingly, that no order could be made in his favour under CA 2006 s 1017(2)(a). It further held that an order in favour of the claimant, under s 1017(2)(b), would not satisfy the requirement, in s 1017(3), of compensating the person subject to a liability in respect of a disclaimer, because the claimant was unaffected by the disclaimer. The court ruled that a vesting order should be made in favour of Kensington.

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