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Unregistered mortgage is void as against liquidator
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High Court rules that a mortgage that was not registered with the Companies Registration Office before a company went into liquidation was void as against a liquidator, and grants the liquidator injunctions restraining the defendant from taking steps to sell and/or dispose of the mortgaged property and from impeding the liquidator from gaining access to the mortgaged property.
Mortgage in respect of a loan advanced by the defendant to a Company in June 2018 prior to the Company going into liquidation - Mortgage was registered by the defendant with the Property Registration Authority but not with the CRO - priority which should be afforded to the defendant in respect of the Mortgage in circumstances where the Mortgage was not registered with the CRO - relevant legal provisions regarding registration of a charge created by a company - registration requirements are not discretionary in nature - charge however remains enforceable as against the company itself even if not registered - whether the security is enforceable against a liquidator, despite non-registration, where a default has occurred while the company is a going concern and enforcement steps are taken prior to the appointment of a liquidator - loan offer letter – mortgage - whether the defendant validly took possession of the Mortgaged Property - the unregistered Mortgage is now void as against the plaintiff liquidator – statute does not exempt charges/mortgages which are in the process of enforcement – injunction - courts will be slow to grant any relief that is likely to end matters before a plenary action – defendant is unable to continue to rely on the Mortgage as against the liquidator - defendant restrained from dealing with and/or disposing of the Mortgaged Property including taking steps to market or advertise the Mortgaged Property for sale and restrained from impeding the liquidator’s access to the property –
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