Kitchen’s Trustee v Madders and Madders

Subject Matter

BANKRUPTCY — Lease of hotel coupled with sale of goodwill and contents — No consent to lease by building society mortgagee of hotel as required by mortgage — Fraud on tenants by lessor — No payment of rent by tenants — Bankruptcy of lessor — Action by tenants for fraud — Judgment in action for damages to be assessed — Action by trustee in bankruptcy for rent due before and after bankruptcy — Foreclosure summons by building society not recognizing lease or tenants — Assessment of damages in tenants' action for fraud — Amendment by building society of summons by asking for possession only — Claim by tenants to set off damages against rent claimed by trustee — Allegation by tenants of risk of having to pay same instalments of rent once to building society and once to trustee.