Property firm defeats hotel in court clash

Property firm defeats hotel in court clash




A recent court case involving a commercial property firm has seen hotel operator forced to accept failure and eviction.

 A recent court case involving a commercial property firm has seen hotel operator forced to accept failure and eviction.

Sheriff Principal C A L Scott, QC of Glasgow heard on appeal from commercial property firm ELB Securities against now dissolved Prestwick Hotels Ltd (SC023305) in late August.


The latter a now-dissolved hotel business which had a lease on the fifth floor at 166 Buchanan Street, Glasgow. The former is a developer who owns the building. The court decided in favour of the developers, holding that "the pursuers are entitled to enter upon possession of the said premises and to dispose thereof at their pleasure."

The hotel operators appear to have refused to surrender the lease and remained at the premises mentioned above, prompting the commercial property firm to pursue court action. 

The sheriff was unflinching in his decision to evict, ordering "the defenders’ servants, employees, tenants and others summarily to flit and remove themselves and their whole goods, gear and other effects" from the property.

It was stated: "My decision might be seen as somewhat harsh in so far as the defenders are concerned.  However, I would reject any such criticism.  Firstly, in general terms, the construction placed upon the provisions of the 2006 Act simply serves to highlight the importance to be attached to proper compliance with features such as the regular and timeous lodging of company accounts etc.  Dissolution of a company is rightly associated with very significant consequences not only for the company itself but also for other parties with whom they have contracted."

According to the Royal Commission on Ancient and Historical Monuments of Scotland, the property itself is in a building also known as Brittania Assurance Building or Dundas House. It is a 19th Century eccentric Victorian red-brick seven-floor commercial building in central Glasgow's shopping district.

ELB Securities owns several office buildings in Central Glasgow, according to its website. 

 

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