Co-Operative Bank plc v Hayes Freehold Ltd (in liquidation) and others; Deutsche Bank AG v Sentrum (Hayes) Ltd (in liquidation) and another [2017] EWHC 1820 (Ch), [2017] All ER (D) 141 (Jul)
Deutsche Bank AG brought a Pt 20 claim against Sentrum (Hayes) Ltd and Sentrum Holdings Ltd, concerning the purported surrender of leases granted in respect of a property. Deutsche Bank had been granted the headlease of the property. It later sub-let the property to Sentrum Hayes, by way of an underlease. Sentrum Holdings was the guarantor under the underlease.
The parties entered into a deed to release them from their respective obligations under the leases. However, due to the existence of a charge in favour of another bank, and the absence of that bank’s consent, the surrender of the headlease was not effective and Deutsche Bank was not released from its liability to pay the head-rent.
The Chancery Division, in dismissing Deutsche Bank’s claim, held that it had not been an implied condition precedent to the release of Sentrum Holdings’ guarantee that the surrender of the
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