Travis Perkins Trading Company Ltd v Bambhra [2022] EWHC 138 (QB) (17 January 2022)

Travis Perkins Trading Company Ltd v Bambhra [2022] EWHC 138 (QB) (17 January 2022)

The guarantee expressly covered all financial obligations of the company to the claimant, including those arising from any increase in the credit limit, and there was no ambiguity in the wording. The alleged changes in trading scope, the construction arguments, and the asserted duties owed to the defendant as guarantor had no real prospect of success. The claimant was entitled to summary judgment and strike out of the relevant defences and counterclaim.

Citation
[2022] EWHC 138 (QB)
Parties
Claimant: Travis Perkins Trading Company Limited; Defendant: Harjit Bambhra
Jurisdiction
England and Wales
Judgment Date
17 January 2022
Procedural Posture
Commercial Claim on Guarantee / Application for Strike Out And/or Summary Judgment; Application for Permission to Amend Defence and Add Counterclaim
Outcome
Summary judgment granted for the claimant; strike out of specified paragraphs of the defence; permission to amend and to add a counterclaim refused.
Legal Topics
Guarantees, Summary Judgment, Strike Out Applications, Construction of Contracts, Directors' Duties
Contract Law Commercial Law Guarantees Summary Judgment Strike Out Applications Construction of Contracts Directors' Duties

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Parties

Travis Perkins Trading Company Limited

Claimant

Harjit Bambhra

Defendant

Procedural Posture

Commercial Claim on Guarantee / Application for Strike Out And/or Summary Judgment; Application for Permission to Amend Defence and Add Counterclaim

Legal Issues

  1. 1 Whether the defendant's amended defences and counterclaim disclose any reasonable grounds or have a real prospect of success against a claim on a personal guarantee for company debts.
  2. 2 Proper construction of the guarantee and whether increases in credit limit or changes in trading scope discharged or limited the guarantee.
  3. 3 Whether the claimant owed any duty to the defendant as guarantor to review the company's account before increasing credit or to act for his protection.

Ratio Decidendi

The guarantee expressly covered all financial obligations of the company to the claimant, including those arising from any increase in the credit limit, and there was no ambiguity in the wording. The alleged changes in trading scope, the construction arguments, and the asserted duties owed to the defendant as guarantor had no real prospect of success. The claimant was entitled to summary judgment and strike out of the relevant defences and counterclaim.

Court Disposition

Summary judgment granted for the claimant; strike out of specified paragraphs of the defence; permission to amend and to add a counterclaim refused.

Orders

  • Specified paragraphs of the defence struck out as disclosing no reasonable grounds or having no real prospect of success.
  • Summary judgment entered in favour of the claimant on the relevant paragraphs.