星空传媒

Mr Coltrane was an assured tenant who paid his monthly rent by posting a cheque to his landlady. He fell several months behind and the landlady brought a claim for possession on the mandatory ground for three months' arrears (ground 8). The trial was fixed for 9 September 2002. On 4 September, the tenant sent a cheque for all the arrears to the landlady's solicitors.

But on 9 September, the cheque had not been presented and cleared. The district judge adjourned the case but on appeal another judge decided that as the rent had not been "paid", possession had to be granted. The cheque later cleared when presented.

The Court of Appeal allowed the tenant's appeal. It ruled that as the parties had agreed payment by cheque, rent was conditionally "paid" when the landlady received a cheque. If it was honoured on presentation the rent was to be treated as actually paid on the date the cheque was received, so there had been no arrears at the date of trial and possession should not have been granted.