|Source:||All England Reporter|
|Publisher Citation:|| All ER (D) 11 (Feb)|
|Court:||Court of Appeal, Civil Division|
Lord Neuberger MR, Richards and Hughes LJJ (judgment delivered extempore)
|Representation||James Ayliffe QC (instructed by Teacher Stern LLP) for the claimants.|
|Raquel Agnello QC and Philip Hinks (instructed by Lawrence Graham LLP) for the defendants.|
|Judgment Dates:||1 February 2011|
Company - Charge - Priority - Debenture - Claimants being trustees of property unit trust - Trust formed as vehicle for purchase of property - Claimants raising purchase price by way of loan from defendant bank - Security created by deed of guarantee and debenture between trustees and bank - Trustees failing to repay loan and bank appointing receivers - Insufficient funds to repay secured loan in full - Trustees contending right of indemnity ranking in priority to bank's security under debenture - Judge rejecting trustees' contention - Whether judge erring.