Re Kaffka

• Jurisdiction: Anguilla
• Court: High Court (Saint Christopher, Nevis And Anguilla)
• Judge: St. Bernard, J.
• Judgment Date: 03 March 1980
• Neutral Citation: AI 1980 HC 2
• Docket Number: 6 of 79
• Date: 03 March 1980

High Court

St. Bernard, J.

6 of 79

Kaffka, Re:

Appearances:

Frank Field for Kaffka

F Kelsick for Chase Manhattan Bank NA

Dr W Herbert for Berglund

Inheritance and Succession - Estate — Debt — Priority of Payment.

St. Bernard, J.

1 These are three applications by three Creditors by way of summons taken together by consent in respect of debts due to them out of the estate of Paul and Vera Randall, deceased. In each case the remedy sought in the application is priority of payment of the debt due to the particular creditor. In the case of the first applicant, Kaffka, the debt claimed amounts to $48,000 US with interest thereon at 9 from 23rd May 1972 to date of this judgment. In the case of Chase Manhattan Bank the debt claimed amounts to $30,391.73 US with interest thereon from 10thNovember 1978 at the rate of 4%, and in the case of Berglund the debt claimed amounts to 388,781 US with interest thereon from date of the judgment debt 28th April 1972.

2 The facts may be briefly summarised as follows: Paul and Vera Randall deceased were the owners of a lot of land of approximately 6 acres at Maundays Bay with a building thereon. Apparently they worked or lived in St Thomas, one of the US Virgin Islands, in 1967 or earlier, where Berglund, the third creditor herein mentioned, loaned them approximately ‘88,000 US. They did not repay the loan and he obtained judgment in Anguilla against them in the High Court on the 24th April 1972. The judgment was entered and no further proceedings matured. On the 23rd May 1972, Paul and Vera Randall mortgaged Maundays Bay to Kaffka to secure a loan of $48,000 US with interest thereon at 9e0 repayable on the 24th May 1977. This loan was not repaid.

3 This mortgage was registered in the Record Office on the 24th May 1972, in Liber D Vol, 4 Fol. 839/852. This debt was later registered on 3rd February 1978 under section 41 of the Registered Land Ordinance, 1974, against Parcel 3 Block 17808 B, the same lot of land herein referred to as owned by the Randalls at that time The Chase Manhattan Bank, NA obtained a judgment against the Randalls on the 19th March 1974, and on the 10th day of September 197';., filed in the High Court an order for sale of Maundays Bay, This application was heard on the 13th September 1974 and an order for sale was made. There was a sale which was aborted an eventually both the Randalls died and the Government of Anguilla acquired the Maundays Bay under the Land Acquisition Ordinance, Chapter 273 of the Laws of Anguilla. A. Board of Assessment was established under the Land Acquisition Ordinance and an award of compensation was made and this award has been deposited for the purpose of paying claims against the estate of the Randalls, hence these applications.

4 Counsel for Kaffka submitted that the debt due to this credit() was paramount and claimed priority of payment amongst the creditors since his debt was the only one registered in accordance with section 41 of the Registered Land Ordinance.

5 Section 41 of the Registered Land Ordinance reads -

• “41 (1) Interests appearing in the register shall have priority according to the Order in which the instruments which led to their registration were presented to the registry, irrespective of the dates of the instrument and notwithstanding that the actual entry in the register may be delayed:

  Provided etc …”

6 Under section 2 of the Registered Land Ordinance “a charge” is defined as an interest in land securing the payment of money or money's worth ………. and includes the instrument creating the charge while “instrument” is defined, as including any deed, judgment, decree order or other document requiring or capable of registration under the Ordinance. In my opinion the paramountcy of payment of a charge, judgment debt or other security takes precedence according to the date and hour of registration under...