Cases - Harries v Barclays Bank Plc

Record details

Name

Harries v Barclays Bank Plc

Date

[1997]

Citation

2 EGLR 15

Keywords

Agricultural tenancies

Summary

In 1979 a farmer granted a legal charge to the bank over his agricultural holding to secure his debt. In April 1984 a substantial milk quota was allocated to the holding. Following the appointment of a receiver by the bank, the dairy herd was sold in February 1988. The bank then took possession of the holding under the terms of its charge and had the milk quota registered in its name. Between April 1988 and April 1994 the bank entered into leases of the milk quota. The holding was sold by the bank in April 1994. The farmer claimed that the bank was not entitled to retain the proceeds from the leasing of the milk quota.

The farmer's claim failed. The milk quota was attached to the land that was in the possession of the bank. It was held that the bank was entitled to retain the rents as one of the products of its possession of the mortgaged property, and that this included the income from the milk quota leasing.