Knightsbridge Estates Trust Ltd v. Byrne and Others

[1940] 2 All ER 401

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(Judgment by: Lord Porter)

Between: Knightsbridge Estates Trust Ltd
And: Byrne and Others

Court:

Judges: Viscount Maugham
Lord Atkin
Lord Wright
Lord Romer

Lord Porter

Subject References:
land
Mortgage
Mortgage by company
Principal repayable by instalments over period of 40 years
Postponement of redemption
Reasonableness of postponement
Clog on equity
Rule against perpetuities
Whether mortgage a debenture

Legislative References:
Companies Act 1929 (c 23) - s 74; s 380

Case References:
Levy v Abercorris Slate & Slate & Slab Co - (1887) 37 ChD 260; 7 Digest 31, 156; 57 LJCh 202; 58 LT 218
British India Steam Navigation Co v Inland Revenue Comrs - (1881) 7 QBD 165; 6 Digest 500, 3172; 50 LJQB 517; 44 LT 378
Lemon v Austin Friars Investment Trust Ltd - [1926] Ch 1; Digest Supp; 95 LJCh 97; 133 LT 790
Samuel v Jarrah Timber & Wood Paving Corpn Ltd - [1904] AC 323; 10 Digest 782, 4892; 73 LJCh 526; 90 LT 731; affg [1903] 2 Ch 1
Re Southern Brazilian Rio Grande do Sul Ry Co Ltd - [1905] 2 Ch 78; 10 Digest 733, 4582; 74 LJCh 392; 92 LT 598
Floyer v Lavington - (1714) 1 P Wms 268; 35 Digest 355, 984
Kreglinger v New Patagonia Meat & Cold Storage Co Ltd - [1914] AC 25; 35 Digest 241, 20; 83 LJCh 79; 109 LT 802
Lindsay v Cundy - (1876) 1 QBD 348; 42 Digest 679, 910; 45 LJQB 381; 34 LT 314; on appeal (1878) 3 App Cas 459
Ely (Dean) v Bliss - (1852) 2 De G M & G 459; 42 Digest 679, 908; 20 LTOS 35

Hearing date: 2, 3, 4 April 1940
Judgment date: 22 April 1940

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Judgment by:
Lord Porter

My Lords, I concur.