LORD DENNING M.R.J, - (1.) In February, 1966, the plaintiffs, a company called Corinthian Securities Ltd. (which had only been incorporated a month or two) lent money, pounds 2,800, to the defendant Mr. Cato, to help him finance a shipment of plant and machinery to the West Indias. As security he gave them a mortgage on his house, 38, Garrick Avenue, Golders Green, London, N. W. 11. They stipulated for interest at 1 per cent per month (that is, 12 per cent. a year), together with a commitment fee of 2 per cent., that is pounds 56 payable in advance. The terms of repayment were that : 'This facility will be repayable on demand but provided the account is conducted satisfactorily no demand will be made and it is understood that full payment will be effected by two equal instalments of pounds 1,400 each. The first instalment to be made six months from the date of the first advance and continuation of the facility to be subject to the first reduction being made on the due date'.
(2.) AS part of the arrangement, Mr. Cato gave a bankers order for the interest of pounds 28 a month. He gave it on his own bank, the Westminister Bank, payable to Corinthian Securities Ltd. at their bank - the National Provincial Bank. Mr. Cato did not get the full pounds 2,800. He only got pounds 2,650. The remaining pounds 150 was deducted for costs and so forth. Corinthian Securities Ltd. claimed to be bankers. They kept what they called a 'current account' which Mr. Cato. They debited him with the interest as it became due; and afterwards, interest upon interest. Mr. Cato was not able to keep up the terms of repayment. He did not pay, at the end of the first six months, the stipulated pounds 1,400. So in July, 1967, Corinthian Securities Ltd. took proceedings in the county court for possession. They claimed as mortgagees to be entitled to possession. Mr. Cato submitted that Corinthian Securities Ltd. were moneylenders. Judge Leon was referred to United Dominions Trust Ltd. v. Kirkwood, and held that Corinthian Securities Ltd. were bankers. On July 27, 1967, he made an order for possession of the house to give up to the mortgagees, but that order was suspended for six months on terms which were agreed by counsel, namely : Mr. Cato was to pay pounds 2,000 straightaway, and to pay the balance in six months and future interest when it fell due, and so forth. Mr. Cato duly paid the pounds 2,000, but did not manage to pay the rest. So on September 4, 1968, Corinthian Securities Ltd. sought to remove the stay. Counsel then agreed on terms that the stay was to be continued, providing that Mr. Cato paid pounds 1,200 by September 11, 1968; pounds 305, and interest, from July 1 to October 31, 1968, to paid by November 1, 1968; the interest being at 12 per cent. per annum calculated on a day -to -day basis. The costs were also provided for :
(3.) AFTER that agreement of September 4, 1968, the solicitors got out the accounts. On November 20, 1968, an account was submitted by Mr. Catos solicitors on his behalf. This showed a balance due from him of pound 11 0s. 11d., which they paid. They say that settled the accounts up to November 21, 1968. But Corinthian Securities Ltd. said that that was not the right balance. They went to the court again and sought to remove the stay. On May 19, 1969, Judge Beresford held that Mr. Cato had not paid what he ought to have done and made the order for possession. Mr. Cato had not paid what he ought to appeal. Terms were imposed by which he had to pay money into court. He did so. And now he appeals in person to this court. His argument raises a point of considerable interest.;