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Escape from mortgage covenants

01 January 2010
Issue: 7397 / Categories: Case law , Judicial line , In Court
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When non-compliance is alleged, can the undertaking be enforced by committal?

When an ancillary relief order recites in its preamble an undertaking to the court to use best endeavours to procure a mortgage release and non-compliance is alleged, can the undertaking be enforced by committal? If not, can an order be made for specific performance with a penal notice being attached?

The court has no greater powers to deal with breach of an undertaking than it has to deal with breach of an order (Gandolfo v Gandolfo (Standard Chartered Bank, Garnishee) [1981] QB 359, CA).

There is no power vested in a court dealing with an ancillary relief application to order a party to procure the other party’s release from mortgage covenants and so the court could not commit for breach of such an undertaking. Nevertheless, the breach of the undertaking would give rise to a cause of action in contract and separate civil proceedings would have to be initiated by the party with the benefit of the undertaking.

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