HL Deb 21 September 1939 vol 114 cc1103-4

Brought from the Commons, and read 1a.

Then, Standing Order No. XXXIX having been suspended:

3.6 p.m.

THE LORD CHANCELLOR (VISCOUNT CALDECOTE)

My Lords, this Bill, the Possession of Mortgaged Land (Emergency Provisions) Bill, which I will ask you to read a second time, is required for the purpose of amending an Act passed by your Lordships' House on September 1, the Courts (Emergency Powers) Act. That Act placed restrictions upon the exercise of the right of a person to take possession of property or to re-enter upon land. By an oversight, which this Bill is intended to remedy, the protection thus given did not extend to the case of a mortgagor against whom proceedings had been taken by the mortgagee to recover possession. Some cases have already arisen of that sort, and having regard to the large activities of the building societies a great many other cases are certain to arise in the near future, in which it is desirable that the mortgagors should have the protection which I think, without doubt, was intended to be given by your Lordships when passing the Act.

This Bill contains two clauses. In the first place it is necessary to amend the ordinary law, as is proposed by Clause 1 of the Bill, so as to prevent a mortgagee from exercising his right to enter into possession at all, unless the mortgagor is in default. When that alteration in the general law has been made Clause 2 will become operative, and it will provide that even where there has been such default in the payment of money the mortgagee shall only be able to recover possession of the mortgaged premises with the leave of the Court. If your Lordships are able to look at Section 1, subsection (4), of the Act, it will be found that directions are given to the Court that the inability of the mortgagor to discharge his liabilities should be considered in relation to whether that inability was due to the circumstances of the war. In that event the Court may either refuse leave to the mortgagee to enter, or may grant leave with such conditions as the Court may think fit. The duration of this Bill, if passed, will be the same as that of the Act which it is amending—namely, the duration of the emergency in which it is passed. I beg to move that the Bill be now read a second time.

Moved, That the Bill be now read 2a.—(The Lord Chancellor.)

On Question, Bill read 2a: Committee negatived.

Bill read 3a, and passed, and a Message sent to the Commons to acquaint them therewith.