Law and Another v Robert Roberts & Company (No. 2)

• Jurisdiction: Ireland
• Judgment Date: 01 January 1964
• Date: 01 January 1964
• Docket Number: (960/1517 P.)
• Court: High Court

(960/1517 P.)

Law and Another v. Robert Roberts & Co. (No. 2).

STEPHEN EDWARD LAW and ADOLPH GARCIA

Plaintiffs

and

ROBERT ROBERTS & CO. (Ireland)LTD., Defendants (No. 2)

Vendor and purchaser - Rate of interest - Contract for sale of premises - Specific performance - Decree - Interest on purchase money from completion date until delivery of possession - Whether "Court rate" of 4% mandatory.

Motion on Notice.

On the 17th April, 1961, Kenny J. gave a decree for specific performance of the contract the subject-matter of this suit. The draft order did not provide for accounts and inquiries as to the rents and profits or for interest on the purchase money pending completion. The plaintiffs now moved to speak to the minutes of the order to provide for these matters.

There is no statutory provision or rule of Court which compels the Court to adopt a rate of interest of 4% on the purchase, money in Court sales or proceedings for specific performance.

So held by Kenny J.

Kenny J. :—

I have already decided that the plaintiffs are entitled to an order for the specific performance of the contract. I regret that I did not know of the decision of the Supreme Court inGodley v. Power(1) (decided in July, 1957, but first reported in September, 1961) when I gave judgment.

The agreement made between the parties provided for completion of the sale in the first week in January, 1961. The order has not yet been completed as the parties are unable to agree on its contents. The purchasers ask for an inquiry as to the occupation rent from the 7th January, 1961, to the date of completion and submit that they are liable to pay interest on the purchase money to the vendors at the rate of 4 per cent per annum from that day until completion. Mr. McGonigal, for the vendors, has argued that the "Court"rate of interest does not apply to a case such as this and that the interest payable by the purchasers should be fixed at the rate of 6 per cent.

At the present time 3 per cent War Loan, which is irredeemable and a trustee security, gives a yield of £6 5s. 0d. per cent and 2¹/₂ per cent Consols give a yield of £5 18s. 0d. per cent. In

most of the sales by private contract which come before the Court the interest payable by a purchaser who does not complete the sale on the day fixed for completion is 6 per cent. I think it undesirable that an unrealistic rate of interest should be adopted in Court sales or in proceedings for specific performance and I do not propose to...