Trade Credit Finance No (1) Ltd. & Anor v Bilgin & Ors [2004] EWHC 2732 (Comm) (03 November 2004)

Trade Credit Finance No (1) Ltd. & Anor v Bilgin & Ors [2004] EWHC 2732 (Comm) (03 November 2004)

The claimants are entitled to summary judgment against the first defendant under the guarantee because the alleged oral assurance, even if made, was suspensory and has ceased to have effect due to the impossibility of a sale to Merkez, and the guarantee expressly provides that the guarantor's obligations are unaffected by any failure to perfect or enforce securities or by any unenforceability of the principal obligation. Arguments based on failure to register title or acquire title in Turkey do not provide a defence under the terms of the guarantee or English law. The second defendant's application for summary judgment is refused as the proprietary claims involve complex factual issues...

Citation
[2004] EWHC 2732 (Comm)
Parties
Claimant: Trade Credit Finance No (1) Limited; Claimant: National Westminster Bank Plc; First Defendant: Dinc Bilgin; Second Defendant: Lime Company Limited; Third Defendant: Coutts & Co
Jurisdiction
England and Wales
Judgment Date
03 November 2004
Procedural Posture
Commercial Claim / Summary Judgment Applications / Interlocutory Applications for Summary Judgment and Continuation of Freezing Injunction
Outcome
Summary judgment granted to claimants against first defendant; second defendant's application for summary judgment refused; continuation of freezing injunction ordered.
Legal Topics
Guarantees and Suretyship, Freezing Injunctions, Summary Judgment, Resulting Trusts, Retention of Title, Assignment of Rights, Beneficial Ownership, Conflict of Laws
Commercial Law Banking Law Equity and Trusts Civil Procedure Guarantees and Suretyship Freezing Injunctions Summary Judgment Resulting Trusts +4 more

Case Brief

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Parties

Trade Credit Finance No (1) Limited

Claimant

National Westminster Bank Plc

Claimant

Dinc Bilgin

First Defendant

Lime Company Limited

Second Defendant

Coutts & Co

Third Defendant

Procedural Posture

Commercial Claim / Summary Judgment Applications / Interlocutory Applications for Summary Judgment and Continuation of Freezing Injunction

Legal Issues

  1. 1 Whether the claimants are entitled to summary judgment against the first defendant under a guarantee for unpaid instalments
  2. 2 Whether the second defendant is entitled to summary judgment dismissing the claimants' proprietary claims to proceeds of sale of property
  3. 3 Whether the freezing injunction should be continued against the defendants

Ratio Decidendi

The claimants are entitled to summary judgment against the first defendant under the guarantee because the alleged oral assurance, even if made, was suspensory and has ceased to have effect due to the impossibility of a sale to Merkez, and the guarantee expressly provides that the guarantor's obligations are unaffected by any failure to perfect or enforce securities or by any unenforceability of the principal obligation. Arguments based on failure to register title or acquire title in Turkey do not provide a defence under the terms of the guarantee or English law. The second defendant's application for summary judgment is refused as the proprietary claims involve complex factual issues...

Court Disposition

Summary judgment granted to claimants against first defendant; second defendant's application for summary judgment refused; continuation of freezing injunction ordered.

Orders

  • Summary judgment for claimants against first defendant for £4,978,547.29 plus contractual interest exceeding £600,000 and continuing to accrue.
  • Second defendant's application for summary judgment dismissed.