Sensar Limited & Anor, R (On the Application Of) v The Chief Land Registrar

A restriction may be entered under section 42(1)(a) of the Land Registration Act 2002 to prevent unlawfulness in a disposition, including a breach of a contractual consent requirement linked to a contractual interest in the property. An equitable charge does not prevent such a restriction where the restriction serves the separate purpose of controlling dispositions.

The applicant must identify the relevant title, property and consenting party with precision. The registrar must assess the application neutrally and may raise requisitions where it is unclear or incomplete. A decision based on an inadequate examination of the material, or failing to decide part of the application, is unlawful and should be quashed and remitted.

Sensar Limited and Azdar Limited sought judicial review of the Chief Land Registrar’s cancellation of an application for Form N restrictions over specified plots at Springbank Gardens. The application relied on joint venture documentation under which money had been advanced for development, with provision for a first legal charge and consent before sale.

The Land Registrar treated the application as insufficient because there was no formal charge and because the alleged unlawfulness went beyond the scope of section 42. Permission was granted on two grounds: whether the statutory power to enter a restriction extended to the circumstances relied upon, and whether sufficient grounds had been shown. The central issues were the scope of section 42(1)(a), the effect of the contractual consent provisions, and the adequacy of the registrar’s decision-making.

1. The claim succeeded. The decision dated 8 July 2016 was quashed and the application was remitted for urgent reconsideration by a senior Land Registrar who had not previously participated in the decision.
2. A restriction prevents dispositions or dealings with a registered estate or charge except in accordance with its terms. A notice instead protects the priority of an interest. Although an equitable charge is ordinarily protected by a notice, that does not exclude a restriction directed to preventing unlawfulness in a disposition.
3. Section 42(1)(a) is not confined to unlawfulness inherent in the contract. Where a contract requires consent before the registered proprietor disposes of the estate, and that consent is linked to a contractual interest such as repayment of an investment and an agreed profit, the proprietor’s failure to seek or obtain consent may constitute unlawfulness within the section.
4. The applicants had to establish sufficient interest and formulate the application accurately. Under rule 93 of the Land Registration Rules 2003, the listed persons are not exclusive; sufficient interest is a matter of fact and degree. The registrar had to remain neutral, assess the application as submitted, and raise requisitions where clarification or further documents were reasonably required.
5. The application was materially imprecise because different plots required consent from different applicants, and documents for two plots were missing. Nevertheless, the registrar’s consideration was inadequate, and there had been no decision on one of the registered titles. Those defects justified judicial review, notwithstanding the possibility that a restriction might have limited practical value or been overreached.
6. The remitted decision was to be made on the basis that the application was received on 23 December 2014, taking account of the material before the registrar on 8 July 2016 and supplemented by the joint venture documents for plots 1 and 2. The applicants were to be notified of any entries considered capable of overreaching the proposed restrictions.

• High Court (Administrative Court): The judicial review claim succeeded. The cancellation decision was quashed and the application was remitted to the Chief Land Registrar for reconsideration.
• Permission stage: His Honour Judge McCahill QC granted limited permission on two grounds and refused permission on the remaining grounds.