LORDS AMENDMENT IN LIEU OF COMMONS AMENDMENT No. 386 (Hansard, 23 October 1985)

Lord Bruce of Donington
My Lords, I beg to move the amendment standing in my name. The purpose of this amendment is to establish a position where access 1277 to the register is access to highly confidential information. We think that a judge should decide whether or not to allow the application, and not just any insolvency practitioner. I beg to move.

§ Lord Lucas of Chilworth
My Lords, I do not want to take up too much time but I have to say that I regret that I am in fact not able to accept the amendment of the noble Lord. Clause 193 was introduced in your Lordships' House during the Report stage of the Bill and gives effect to the recommendation contained in paragraph 794 of the review committee's report. The introduction of the new clause received your Lordships' full support. Indeed, the noble Lord, Lord Bruce of Donington, said (and I am grateful to him): We on this side of the House entirely support the insertion of the new clauses". That was in Hansard, col. 193, on 2nd April 1985.
It is true that the scope of the clause was extended by Government Amendments Nos. 385 to 388 in the other place to include inspection of the land register by the official assignee for and trustees, liquidators and administrators in Northern Ireland. However, the purpose of the clause remains exactly as it was upon its introduction.
The amendment tabled by the noble Lord would provide that inspection of the land register in England and Wales could only be carried out with the prior leave of the court. If the Government were to accept this amendment, in our view it would seriously lessen the effectiveness of the new provision. For instance, one of the present exceptions to the normal land registry rules about inspection in England and Wales is that contained in Section 112A of the Land Registration Act 1925, and inserted into that Act by Schedule 5(b) of the Administration of Justice Act 1982. This empowers the Official Receiver or trustee or liquidator to obtain a court order for inspection of the register if he can sign a declaration to the effect that he believes that a criminal offence has been committed in relation to the property concerned.
However, it is often only after relevant information has been obtained and inquiries have been made that such a declaration can be signed. In addition, obtaining a court order can prove to be troublesome and expensive, and it is often in the cases where the insolvent estate is completely without funds that information is required but cannot be obtained.
If the procedure suggested by the amendment of the noble Lord, Lord Bruce of Donington, were to be followed, and if the application to the court involved only the relevant office holder, the court would be unlikely to refuse his application if he made a statement equivalent to the certificate required by subsection (2) of new Section 112AA of the Land Registration Act. If it is intended that other parties should be entitled to be heard on the application, that would presumably involve bringing in the registered owner of the property; but he cannot be identified without inspection of the register, and a vicious circle is so created.
1278 As I have said, that provision in the Bill follows that which was recommended by the review committee. We have received no criticism of the clause from any other quarter. I hope that after that explanation the noble Lord will agree with me that his amendment is not as necessary as perhaps he thought it was.

Lord Bruce of Donington
My Lords, I am most grateful to the noble Lord for his explanation. He has taught me a lesson. It has always been my practice in political and social life to believe that my first thoughts were correct—immediate instinct. On this one occasion, where I presumed to think that 1 had previously been wrong I find that I was right after all. I am obliged to the noble Lord for pointing out the fact and showing how dangerous it is to have second thoughts. I beg leave to withdraw the amendment.