Chatrani v British American Insurance Company Ltd

• Jurisdiction: Barbados
• Court: High Court (Barbados)
• Judge: Williams, C.J.
• Judgment Date: 23 February 1982
• Neutral Citation: BB 1982 HC 14
• Docket Number: No. 5 of 1982
• Date: 23 February 1982

High Court

Williams, C.J. (Ag.)

No. 5 of 1982

Chatrani

and

British American Insurance Co. Ltd.

Mr. G. Allen for the plaintiff

Mr. C.A. Williams for the defendant

Real property - Statutory Interpretation (Barbados Property Act, 1979) — Meaning of Purchaser

Statute - Interpretation — Meaning of Purchaser

Williams, C.J.

1 Mr. Khial Chatrani is purchasing No. 64 Elizabeth Park, Christ Church, from Mr. Samuel Rollock and the British American Insurance Company Limited has agreed to lend him $125,000 to be secured on a mortgage of the property. The Insurance Company by letter dated the 13th day of February, 1981 committed itself to the loan subject to certain terms and conditions one of which is in part as follows:–

“4. Title to the property and other legal matters must satisfy the requirements of the Attorneys-at-Law for British American Insurance Company Limited and the funds are not to be advanced until they can certify that:–

• (a) they have a valid first charge on the property;…………………..”

2 Mr, Chatrani by letter of the 25th day of February, 1981 accepted the terms and conditions subject to which the commitment was given.

3 On the 17th day of June, 1981 Hutchinson and Banfield, Attorneys-at-Law for the Insurance Company, requisitioned Yearwood & Boyce, Attorneys-at-Law for Mr. Chatrani, requesting them to deduce title from Mr. Samuel Rollock to Mr. Chatrani. In particular they indicated that the property was to be released from the burden of an agreement dated the 17th day of April, 1975 and made between Mr. Rollock and his wife whereby Mr. Rollock charged his estate with the payments stipulated to be made by him to his wife under the agreement. This agreement was one made between Mr. and Mrs. Rollock when Mrs. Rollock was considering commencing legal proceedings for a dissolution of their marriage and it provided for ancillary matters arising out of the proceedings, involving –

• (a) custody of the two children of tile marriage, which was to be given to the wife;

• (b) the payment to the wife of maintenancefor the children; and

• (c) the payment of a sum to the wife in full satisfaction of the wife's claim for alimony pending suit, maintenance or secured provision.

4 Clause 9 of the Agreement provides that it shall bind Mr. Rollock, his heirs, executors, administrators and assigns and shall be a charge to his estate.

5 This agreement was recorded in the Registry and Hutchinson & Banfield take the view that any payments due thereunder would rank as a charge on No. 64 Elizabeth Park, Christ Church, with priority over the loan...