DDR v BDR (Financial Remedies, Beneficial Ownership and Insolvency)
[2024] EWFC 278
Ann Nilsson & Anor v Mohammad Babar Iqbal & Anor
17 January 2024
[2024] EWHC 49 (Ch)
High Court
A bankrupt and his ex-wife jointly owned a house. The ex-wife claimed the house was hers alone after their divorce. Because she couldn't prove a formal agreement or that she relied on a promise to her detriment, the judge ruled they each own half.
Key Facts
- •Mr. and Mrs. Iqbal were joint tenants of a property, with an express declaration of trust stating equal beneficial ownership.
- •Mrs. Iqbal claimed an oral agreement in 2017, following an Islamic divorce, granted her 100% beneficial ownership.
- •Mr. Iqbal was declared bankrupt in 2020, and the Trustees sought a declaration of beneficial ownership and possession.
- •Mrs. Iqbal's evidence contained inconsistencies regarding the date of a solicitor's meeting and mortgage payments.
- •Mr. Iqbal did not attend the hearing for cross-examination.
Legal Principles
Section 14(2) of the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) and section 335A of the Insolvency Act 1986 govern possession claims.
TOLATA and Insolvency Act 1986
An express declaration of trust is conclusive unless varied by subsequent agreement or proprietary estoppel.
Stack v Dowden [2007] 2 AC 432
Proprietary estoppel requires a clear assurance, detrimental reliance, and unconscionability.
Thorner v Major
Outcomes
The Trustees and Mrs. Iqbal are beneficially entitled to the property in equal shares.
The oral agreement lacked the necessary formality to vary the express declaration of trust, and proprietary estoppel was not established due to the lack of clear assurance and conclusive detrimental reliance.
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