Jurisdiction(s):
United Kingdom

Proprietary estoppel denied following informal Islamic divorce; express TR1 declaration of trust upheld; trustee in bankruptcy’s claim continues (Nilsson v Iqbal, England and Wales)

Published on: 02 February 2024

Published by a LexisNexis Restructuring & Insolvency expert

Legal News

Article summary

Nilsson and another v Iqbal and another [2024] EWHC 49 (Ch), [2024] All ER (D) 68 (Jan)

What are the practical implications of the case?

The decision confirms that a potential proprietary estoppel must be addressed even where it is not advanced by formal pleadings. The dispute was determined within a possession and sale application issued by Mr Iqbal’s trustee in bankruptcy, using an Insolvency Act 1986 application notice. Mrs Iqbal relied solely on witness statements to put forward a proprietary estoppel, without any application to serve formalised pleadings. The court nevertheless considered that defence and engaged with the point in its judgment.

The ruling also serves as a reminder that unseating an express declaration of trust in a form TR1 is exceptionally challenging. The starting point is that such a declaration is conclusive.

The three routes to displace the declaration are:

that the declaration was invalid due to fraud, undue influence, coercion, or mistake
that the parties had come to a subsequent written agreement, which complied with the formalities of the Law of Property (Miscellaneous Provisions) Act

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