This section is from the book "Dart's Treatise On The Law And Practice Relating To Vendors And Purchasers Of Real Estate", by J. Henry Dart . Also available from Amazon: A treatise on the law and practice relating to vendors and purchasers of real estate.
(f) Meux v. Smith, (1840) 11 Si. 410; 12 L. J. N. S. Ch. 209; Bird v. Philpott, 1900, 1 Ch. 822; 69 L. J. Ch. 487; and see Re Connolly Bros., Ltd., 1912, 2 Ch. 25, 28.
(g) Ex p. Rabbidge, (1878) 8 Ch. D. 367; and see Powell v. Marshall, Parkes & Co., 1899, 1 Q. B. 710; 68 L. J. Q. B. 477; Re Wigzell, 1921, 2 K. B. 835; but see inf. pp. 1020, 1023 et seq.
(h) And see s. 203 of L. P. Act, 1925.
(i) Under the County Courts Act, 1888, 8. 70, sums not exceeding 500/. can be paid into the Post Office Savings Bank.
Upon a sale by an owner, under the L. C. C. Act, 1845 (l), the entire purchase and compensation moneys, if amounting to 2001., must be paid into the bank, or (if under 2001. but exceeding 201.), into the bank, or to trustees, and be applied in manner directed by the 69th and following sections of the Act: and no part thereof can be safely paid to such owner. The above provisions extend to money agreed to be paid to him for assenting to, or not opposing, the passing of the bill authorising the taking of the lands; but the Court or the trustees, as the case may be, may allot to him' a portion of the sum so paid, as a compensation for personal injury, inconvenience or annoyance (m). Statutory vendors, having pressed for and received the purchase-money, have been compelled, on the application of the purchasers (who had taken possession but had not obtained conveyance), to bring the money into Court (n). Where, after the amount of the purchase-money has been ascertained or agreed upon, the owner (o) refuses to convey, or cannot be found, or does not make a satisfactory title (p), the purchase-money may be paid into Court (q), and upon the execution of a deed poll by the company, the lands purchased vest in the company (r).
Payment of consideration money upon sale by statutory owners to railway companies, etc.
Where under ss. 99 - 107 of the L. C. C. Act, 1845, compensation for the extinction of commonable rights has been paid to a de facto Committee of Commoners, the only tribunal having jurisdiction is the Ministry of Agriculture, and the
Court has no power to order the money to be paid into Court (s).
Court has no jurisdiction under the L. C. C. Act, over a committee of commoners.
(k) This provision takes the place of s. 5 (1) of the Conv. Act, 1881. See Wolst. & Cherry, 11th ed. vol. i. p. 219; and inf. p. 972.
(l) See now, however, the L. P. Act, 1925, s. 42 (7), sup. p. 463.
(m) S. 73; see Re Duke of Marlborough's Estates, (1849) 13 Jur. 738; Ex p. Rector of Little Steeping, (1848) 5 R. C. 207.
(n) L. & N. W. R. Co. v. Corp. of Lancaster, (1851) 15 Beav. 22.
(o) Douglass v. L. & N. W. R. Co., (1857) 3 K. & J. 173; Wells v. Chelmsford Loc. Bd., (1880) 15 Ch. D. 108; 49 L. J. Ch. 827.
(p) Re Manor of Lowestoft, (1883) 24 Ch. D. 253; 52 L. J. Ch. 912.
(q) S. 76.
(r) S. 77. See Ex p. Winder, (1877) 6 Ch. D. 696; 46 L. J. Ch. 572: Ex v. Burdett Coutts, 1927, 2 Ch. 98.
By s. 69, money so paid into Court is to remain deposited until applied for some one or more of the purposes therein mentioned. The section has been liberally construed (t), and its scope largely extended by s. 76 of the S. L. Act, 1925, which provides that money paid into Court under any Act incorporating wholly or in part the L. C. C. Acts, and liable to be laid out in the purchase of land, to be made subject to a settlement, may be invested or applied as capital money arising under the S. L. Act (u).
How moneys deposited are to be applied under the 69th section.
Money in Court may be dealt with under S. L. Act.
An order for the reinvestment of part of the money in land may also direct that the balance, if less than 20l., be paid to the tenant for life (x): and a balance of 30l., remaining after the purchase of an estate, was ordered to be paid to the tenant for life, on his undertaking to apply it in permanent improvements (y); but where the balance was 20l. 10s., the Court refused to order payment to the tenant for life in liquidation of extra costs beyond those allowed by the Act (z).
Where balance in Court is less than 20l.
Questions arising between tenant for life and remainderman as to the disposition and application of purchase-moneys in which both are interested, are dealt with by s. 74 (a) of L. C. C. Act, provisions analogous to which are contained in s. 79 of the S. L. Act, 1925 (b).
Apportionment of purchase-money as between tenant for life and remainderman.
Sect. 79 of the L. C. C. Act, 1845, provides that as regards title to lands in respect of which money has been deposited, the persons in possession as owners are to be deemed entitled until the contrary is shown, and money deposited is to be paid or applied accordingly (c). But in all applications under Acts of Parliament directing the purchase-money of property sold to be paid into Court, the petitioners claiming to be entitled to the money so paid in, must make an affidavit not only verifying their title, but also stating that they are not aware of any right in any other person, or of any claim made by any other person, to the sum mentioned in the petition, or any part thereof (d). Where the application is made by a married woman, there must be an affidavit of no settlement (e); but her separate examination is now in no case necessary (f)., Where a person entitled to an aliquot share of a sum of money so brought into Court petitions for payment of his share, he need not give notice to the parties entitled to the other shares (g).
On sale under L. C. C. Act, person in possesion is primd facie entitled to purchase money deposited.
(s) Richards v. Be Winton, 1901, 2 Ch. 566; Salmon v. Edwards, 1910, 1 Ch. 552.
(t) For cases on s. 69, see notes to this section in Browne &; Theob. 4th ed. p. 178 et seq.
(u) See notes to s. 76 in Wolst. & Cherry, 11th ed. vol. ii. p. 204.
(x) See s. 72. Re Lord Egremont, (1848) 12 Jur. 618; Ex p. Rector of Little Sleeping, (1848) 5 R. C. 207.
(y) Ex p. Barrett, (1850) 19 L. J. Ch. 415; but see Re Bateman's Estate, (1852) 21 L. J. Oh. 691.
(z) Ex p. Vicar of Bredicot, (1848) 5 R. C. 209; 17 L. J. Ch. 414.
(a) See Browne & Theob. 4th ed. p. 197.
(b) See notes to this section in Wolst. & Cherry, 11th ed. vol. ii. p. 209.
Affidavit necessary on petition for payment out of Court.
Persons " becoming absolutely entitled" within the meaning of s. 69 of the L. C. C. Act, 1845, so as to entitle them to have money in Court paid out to them, include trustees for sale, charity trustees, the official trustee of charitable funds, and a statutory owner (h).
Except when the payment into Court has been occasioned by the wilful default of the owner, the costs of dealing with the money so paid in (other than costs due to litigation between adverse claimants (i)) are generally payable by the undertakers (k).
Who are persona
(c) See case3 cited in the notes to this section in Browne & Theob. 4th ed. p. 202.
(d) R. S. C. 1883, Ord. LII. r. 18; Re Ladyman, (1926) 70 Sol. Jo.
(e) Supreme Court Funds Rules, 1894, r. 61. (f) L. P. Act, 1925, s. 167 (2).
(g) Re Midland, R. Co., (1847) 11 Jur. 1905.
(h) See notes to s. 69 in Browne & Theob. 4th ed.; Re Chelsea Waterworks Co., (1887) 56 L. T. 421; 56 L. J. Ch. 640; Re Morgan, 1900, 2 Ch. 474; 69 L. J. Ch. 735; Re Sheffield Corp., 1903, 1 Ch. 208; 72 L. J. Ch. 71. The rule that a trust fund in Court will not be ordered to be paid out to a sole trustee (except with consent of all the beneficiaries) has been held not to be inflexible (Leigh v. Pantin, 1914, 2 Ch. 701), but queere whether this decision is now law; see L. P. Act, 1925, 8. 27 (2), as amended by the Act of 1926.
An investment in land of a different tenure from that which produced the fund is generally improper (l): but the rule does not prevent the application of money arising from the sale of freeholds (m) in buying up a beneficial lease which forms an incumbrance on other freeholds settled to the same uses (n); and where a freehold chapel vested in trustees had been taken under compulsory powers, the Court authorised an investment in the purchase of a leasehold chapel, a suitable freehold tenement not being readily procurable (o). The Court will ordinarily require the title to be approved by the conveyancing counsel of the Court; but may adopt any other mode of 'satisfying itself of the sufficiency of the title (p); and a strictly marketable title will not always be insisted on (q). Where the fund has arisen from land belonging to an ecclesiastical corporation sole, the income has been ordered to be paid to the petitioning incumbent, so long as he remained incumbent, and afterwards to the incumbent for the time being (r): so, in the case of a charity, the order has been for payment to any two of the trustees for the time being (s).
(i) See Be Hood and West Ham Corp. Act, 1910, W. N. 80.
(k) L. C. C. Act, 1845, 8. 80; and see the note on that Act in Ann. Pr. under Ord. LXV. r. 1. See also Be Griggs, 1914, 2 Ch. 547.
(1) Ex p. Macaulay, (1854) 23 L. J. Ch. 815; Be Liverpool Dock Acts, (1851) 1 Si. N. S. 202; and see Be Brasher's Trusts, (1858) 6 W. R. 406. Cf. S. L. Act, 1925, s. 76; sup. p. 578.
(m) Re Cheshunt College, (1855) 1 Jur. N. S. 995; Dixon v. Jackson, (1856) 25 L. J. Ch. 588.
(n) Be Manchester B. Co., (1855) 2 Jur. N. S. 81; and see Ex p. Bishop of London, (1860) 2 D. F. & J. 14; Ex p. Corp. of Sheffield, (1855) 21 Beav. 162; 25 L. J. Ch. 587.
(o) Re Rehoboth Chapel, (1875) 19 Eq. 180; 44 L. J. Ch. 376; and see Ex p. Trin. Coll. Cam., (1868) 18 L. T. 849.
(p) Be Jones' S. E., (1855) 1 Jur. N. S. 817; Ex p. Vicar of East Dereham, (1852) 21 L. J. Ch. 677; Be Hichin's Estate, (1853) 1 W. R. 505. (q) Sup. p. 82.
(r) Be Archbishop of Canterbury, (1848) 2 De G. & S. 365.
(s) Be Collins' Charity, (1851) 20 L. J. Ch. 168; Ex p. Shrewsbury Hospital, (1852) 9 Ha. App. xlv.; Be Lucas' Charity, V.-c. W., 8th March, 1856; Be Clinton, (1860) 8 W. R. 492. See as to evidence, Be Lowndes's Trusts, (1851) 20 L. J. Ch. 422.
A conveyance to a charity, upon a re-investment in land of the purchase-moneys of their sold estate, must be recorded in the books of the Charity Commissioners (t), unless s. 117 of the Education Act, 1921, applies.
Conveyance to a charity on re-invest ment requires enrolment.
Where purchase-money has been paid into Court by a company, by reason of the vendors failing to make a title, and they subsequently make out a title to part only of the land, an order may be made for the apportionment of the fund in Court, and giving consequent directions (u).
Apportionment of fund in Court, if title shown to part of land.
The Court has no jurisdiction to give to the landowner interest on the amount which has been paid into Court by the company, as the value of land on the assessment of a jury (x).