27—Discharge of incumbrances by the Court on sales or exchanges
(1) Where land subject
to any incumbrance, whether immediately realisable or payable or not, is sold
or exchanged by the court, or out of court, the court may, if it thinks fit,
on the application of any party to the sale or exchange, direct or allow
payment into court of such sum as is hereinafter mentioned, that is to
say—
(a) in
the case of an annual sum charged on the land, or of a capital sum charged on
a determinable interest in the land, the sum to be paid into court shall be of
such amount as, when invested in Government securities, the court considers
will be sufficient, by means of the dividends thereof, to keep down or
otherwise provide for that charge; and
(b) in
any other case of capital money charged on the land, the sum to be paid into
court shall be of an amount sufficient to meet the incumbrance and any
interest due thereon
but in either case there shall also be paid into court such additional amount
as the court considers will be sufficient to meet the contingency of further
costs, expenses and interest, and any other contingency, except depreciation
of investments, not exceeding one-tenth part of the original amount to be paid
in, unless the court for special reason thinks fit to require a larger
additional amount.
(2) Thereupon, the
court may, if it thinks fit, and either after or without any notice to the
incumbrancer, as the court thinks fit, declare the land to be freed from the
incumbrance, and make any order for conveyance, or vesting order, proper for
giving effect to the sale or exchange, and give directions for the retention
and investment of the money in court and for the payment or application of the
income thereof.
(3) The court may
declare all other land (if any) affected by the incumbrance (besides the land
sold or exchanged) to be freed from the incumbrance, and this power may be
exercised either after or without notice to the incumbrancer, and
notwithstanding that on a previous occasion an order, relating to the same
incumbrance, has been made by the court which was confined to the land then
sold or exchanged.
(4) On any application
under this section the court may, if it thinks fit, as respects any vendor or
purchaser, dispense with the service of any notice which under this Act or
otherwise would apart from this subsection be required to be served on the
vendor or purchaser.
(5) After notice
served on the persons interested in or entitled to the money or fund in court,
the court may direct payment or transfer thereof to the persons entitled to
receive or give a discharge for the same on such terms as to delivering up of
deeds or other documents or on such other terms as the court thinks fit, and
generally may give directions respecting the application or distribution of
the capital or income thereof.
(6) This section shall
apply to sales and exchanges, and to incumbrances whether created by statute
or otherwise.