Brook v Green

Brook v Green

The guarantee expressly excluded any right of discharge for omissions by the creditor, including failure to register the charge. The respondent, as director, was responsible for registration and cannot rely on his own default. All loans were made by or on behalf of the petitioner and are within the guarantee. The interest rate of 3% per month compounded applies to all loans. The petitioner is not fully secured; even after valuing the security, a substantial debt remains due. The statutory demand was overstated but the debt exceeds the bankruptcy threshold. The petition succeeds.

Parties
Petitioner: Eric Arthur Brook; Respondent: Stuart Andrew Green
Jurisdiction
England and Wales
Judgment Date
08 February 2006
Procedural Posture
Bankruptcy Petition / Contested Final Hearing and Judgment
Outcome
Bankruptcy order made against respondent
Legal Topics
Bankruptcy Petition, Personal Guarantee, Loss of Security, Interest Calculation, Statutory Demand, Company Charges, Set Off and Counterclaim
Insolvency Contract Law Guarantees Bankruptcy Petition Personal Guarantee Loss of Security Interest Calculation Statutory Demand +2 more

Case Brief

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Parties

Eric Arthur Brook

Petitioner

Stuart Andrew Green

Respondent

Procedural Posture

Bankruptcy Petition / Contested Final Hearing and Judgment

Legal Issues

  1. 1 Whether the guarantee is discharged pro tanto by loss of security due to non-registration of company charge
  2. 2 Whether the sums claimed are due from the respondent under the guarantee
  3. 3 Whether the interest claimed is due and at what rate

Ratio Decidendi

The guarantee expressly excluded any right of discharge for omissions by the creditor, including failure to register the charge. The respondent, as director, was responsible for registration and cannot rely on his own default. All loans were made by or on behalf of the petitioner and are within the guarantee. The interest rate of 3% per month compounded applies to all loans. The petitioner is not fully secured; even after valuing the security, a substantial debt remains due. The statutory demand was overstated but the debt exceeds the bankruptcy threshold. The petition succeeds.

Court Disposition

Bankruptcy order made against respondent

Orders

  • Bankruptcy order against Stuart Andrew Green
  • Petitioner to file amended petition to comply with procedural rules