Vine House Property Management Ltd v Bank of Scotland PLC

Facts

Vine House Property Management Ltd borrowed £1,177,500 from Bank of Scotland plc on 19 July 2002, secured by a legal charge over Vine House, 143 London Road, Kingston upon Thames. Further advances followed: £125,000 in 2003 and £134,421 in 2004. At about the time of a further advance, a solicitor acting for the company signed a debenture dated 18 October 2002 (the date is also given in the judgment as 18 October 2022). The company said the solicitor was also acting for the bank, which the bank disputed. The company said it had not known of the debenture until 3 January 2024. Arrears were said to date from April 2023. They stood at £68,813.40 in May 2024 and at about £61,900 by the time of the hearing, at least £32,725 of which related to the original loan. The bank wrote in December and January threatening, among other steps, to appoint receivers. The company, represented by its director Mr Carter in person, then applied for an injunction to stop the bank appointing a receiver or taking any other enforcement step. It challenged the validity of the debenture and later of the legal charge, disputed how interest was calculated and whether legal costs could be added, and invoked Article 1 and Article 6 rights under the Human Rights Act. No claim form had been issued, but the judge heard the application anyway.