New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Creditor misconduct
  • 5 Oct 2012

    BANK OF NEW ZEALAND V SHUKLA HC AK CIV-2012-404-2219

    Citation
    openlaw-884dd862_7199_40bb_b4ca_5aae59e748ce.pdf
    Court
    High Court

    The signed guarantee and incorporated schedule expressly covered future indebtedness and constituted a continuing guarantee; the bank's exercise of rights to demand overdraft reduction and repayment in the face of the company's deteriorating financial position did not amount to bad faith or conduct discharging the guarantor; any past assurances did not create an estoppel that barred the bank from exercising its rights once circumstances changed; accordingly the guarantor had no arguable defence and summary judgment was entered for the bank.