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Case Analysis : Food Distributors Ltd Essay

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Name of case:
D.H.N. Food Distributors Ltd. v Tower Hamlets London Borough Council

Names of parties:
D.H.N. Food Distributors Ltd( Appellant), Bronze Investment Ltd( Appellant); D.H.N. Food Transport Ltd( Appellant)
Tower Hamlets London Borough Council (Respondent)

Court:
The court of appeal (civil division)

Judges:
Lord Denning M.R, Goff LJ and Shaw LJ

Citation:
[1976]1 W.L.R.852.

Essential facts:
D.H.N was a company which ran a business of wholesale grocery and owned all shares of the D.H.N Food transport Ltd as well as Bronze Investment Ltd. Bronze operates no business activities and only owned the premise, the director of the Bronze was the same as that of D.H.N. In February 1966, D.H.N made an agreement with the bank who was a shareholder of the bronze that, the bank would sell all the shares in Bronze to D.H.N at the price of £120,000. Another subcompany was D.H.N. Food transport Ltd who owned vehicles simultaneously used by D.H.N. In 1970, the Tower Hamlets London Borough Council compulsory acquired the premise to build houses. Following this, D.H.N. had no choice but to close down. The compensation from Tower Hamlets London Borough Council, which is equivalent to the 1.5 times of the value of the premise was only paid to the Bronze. So far, the lands tribunal did not support any further compensation is payable to any one of the three companies.

Procedural history: follow three companies’

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