A sole director and shareholder entered into both a personal loan (guaranteed by his company) and a company loan (secured by company property and a personal guarantee). Both loans went into default. The bank sought possession of the company and personal properties. No defence was filed but the following arguments were made by director from the bar table:
- that notwithstanding what the Bank’s loan accounts showed, he had not received the moneys which were said to have been advanced;
- that the Bank had not properly accounted for the receipt by it of $196,000 in June 2008;
- that the Bank had inappropriately charged interest at the default rate, with the consequence that the loans were wrongly regarded as being in default when, in truth, they were not;
- the Bank had failed to send him copies of the account statements; and
- at some unidentified point in time, which seemed to be about June 2008, he had received conflicting information from two bank officers as to whether his accounts were in order, or else substantially in arrears.
The court, after considering evidence and submissions by the bank, determined that none of the matters raised by the director had any substance. Nevertheless the technical basis for entering judgment against the director was the failure to file a defence.