Gilje and others v Charlegrove Securities Ltd and another (No 2)

[2003] EWCA 1284 (Ch), 13 May 2003. Appeal by claimant tenants (G) against Master Price's declaration of 12 December 2002 on a preliminary issue that the Landlord and Tenant Act 1985 s20B did not prevent the defendants (C) from charging expenditure by way of service charges in accounting periods ending 25 March 1999 and 25 March 2000, notwithstanding that the expenditure was incurred 18 months prior to the accounts and final demand being served by C. Account payments' considerations came under s19(2) and not s20B. G appealed contending that under cl4(2) of the leases, the issue and supply to the tenants of the accounts and certificates for the relevant year constituted 'the demand for payment of the service charge' within s20B. Appeal dismissed. "Held" appeal dismissed. S20B of the 1985 Act had no application where payments to the lessor on account are made as service charges, where the lessor's actual expenditure does not exceed the above payments and where no request for any further payment needs are in fact made. The supply of accounts and certificates under cl4(2) was in no way a payment demand since there was nothing to demand because the actual expenditure for the year in question was less than the interim payments. (See also Abs65411).