In a recent case in which our office has been acting on behalf of the principal debtor/mortgager and its guarantor the powers of an out of court appointed Administrator/Receiver as per a floating charge have been questioned.
The court held that an Administrator/Receiver, appointed as per a floating charge, could not sell an immovable property through an open invitation for offers -(exercising his powers granted to him by the floating charge)- which was mortgaged prior to the date of the crystallization of the floating charge.
By applying the maxim that "Equity follows the Law", the court held that the Administrator/Receiver shall use the procedure provided in the Transfers and Mortgages of Immovable Properties Law 9/65 to sell the mortgaged property and not any other procedure of sale which is not regulated by legislation.
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