Padwick Properties Limited v Punj Lloyd Limited [2016] EWHC
502 (Ch) is a reminder that conduct of both the landlord and
tenant are relevant to effect surrender by operation of law and
that the return of keys and vacating the premises alone is not
sufficient.
Facts
In 2005, Padwick Properties Limited ("Padwick")
acquired a long lease of a property subject to an underlease. In
2006 the lease was assigned to Simon Carves Limited
("SCL") subject to a guarantee from its holding company
Punj Lloyd Limited ("Punj"). Under the terms of this
guarantee Punj agreed to pay all monies due under the lease and to
take a new lease of the property if the lease was disclaimed.
In 2011 SCL went into administration and ceased trading. Its
assets were purchased by another subsidiary of Punj, Simon Carves
Engineering Limited ("SCEL"). SCEL was granted a licence
to occupy the property and remained in occupation until 28
September 2011. Two days later, SCL's administrators
