Landlord’s bankruptcy petition dismissed due to a failure to provide an address for service of notices.
Summary
The High Court found that a petitioning creditor's failure to provide an address for service of notices meant the petition debt was not due immediately or at some certain future time.
Background
A bankruptcy petition was presented by Sunset Limited in respect of rent arrears on four leasehold properties. The petition debt was £248,750.
Landlord and Tenant Act 1987 requirements
Al-Hindi alleged (amongst other defences that were dismissed) that Sunset had failed to supply an address for service of notices. Section 48 Landlord and Tenant Act 1987 states that rent is not due until the landlord furnishes the tenant with an address in England and Wales at which notices can be served. Sunset Properties had supplied an address in Jersey. Sunset argued that its statutory demand had contained the address of solicitors in England, and this was enough to satisfy the requirements of section 48.
The court noted that the address given was expressly limited to communications relating to the statutory demand and was not a ‘general’ address for notices. The court considered section 267 Insolvency Act 1986, which requires a petition debt to be due ‘immediately or at some certain, future time’.
The court's decision
The court dismissed the bankruptcy petition. It held that the provision of a solicitor's address for service in relation to a specific set of proceedings does not imply that the solicitors are authorised to accept service of other notices. Provision of an address after service of the petition could not remedy the defect. This meant the debt was not due immediately or at some certain future time, as a complaint notice might never have been given.
Comments
Bankruptcy petitions for rent arrears are rare, especially for residential tenancies. A landlord will normally bring possession proceedings and obtain a judgment for the debt. This case highlights the need for an address for notices in England and Wales before legal proceedings are commenced, including for possession. An increasing number of landlords are opting to use foreign holding companies as a point of contact, in which case they must supply an alternative address in England and Wales.
Rent is due from the tenant once the address requirement is met. Tenants who rely on this defence are likely to face new court proceedings if they do not bring their rent account up to date or make a proposal acceptable to the claimant.