Home Information Cases Bank of Baroda v Shah & Anor (1988)

Skip to content. | Skip to navigation

Bank of Baroda v Shah & Anor (1988)


Bank not under a duty to ensure guarantors have independent advice.


Bank's appeal against dismissal of possession proceedings where judge had held that respondents' guarantee of a relative's company and mortgage of respondents' house had been induced by undue influence, as the respondents had no independent legal advice and the company solicitor who purported to act on their behalf,was not instructed by them.


In the light of Coldunnell Ltd v Gallon & Anor (1986) 2 WLR 466 there was no duty on the bank or its solicitor to ensure the respondents took entirely independent legal advice.The bank was entitled to expect the solicitor to act honestly & was unaffected by any undue influence.
Appeal allowed.

Court of Appeal
Dillon LJ, Neill LJ, Stocker LJ
Judgment date
23 March 1988

[1988] 3 All ER 24 : [1988] Fin LR 403 : (1988) 138 NLJ Rep 98

Previous Members

hh-judge-david-hodge-qc,HHJ David Hodge QC

Practice areas