Two actions were tried together involving a commercial property.
In the first action, the mortgagee sought to enforce a mortgage and claim the balance owing.
In the second action, the mortgagor/landlord claimed rental arrears from the tenant and sought to invalidate the mortgagee's purported sale of the property to itself under power of sale.
The court found that the mortgagee acted in bad faith, failed to obtain a proper price, and violated the rule against a mortgagee selling to itself.
The power of sale was declared void, and the title was rectified.
The court also found that the mortgage had been paid in full through the receipt of rents, dismissing the mortgage action.
The tenant and subtenant were found jointly and severally liable for rental arrears accruing after the mortgage was paid out.
