National Australia Bank Limited (ASX:NAB) has dropped a court case, that if they had won, may have set a precedent to allow banks to evict tenants when the landlord defaulted on mortgage payments.
The NAB had taken the Victorian Sheriff’s Office to the state Supreme Court, after it failed to immediately evict tenants of two Melbourne properties when the owners defaulted.
The bank has now withdrawn its application and says it supports the legal rights of tenants and the provision of a 28 day notice period.
The NAB posted a full year net profit of $5.2 billion to September 30, 2011.
