The lender obtained judgment on 9 October 2009. The borrowers obtained several stays and were also allowed back onto the security property by agreement with the lender on several occasions. The borrowers then sought a stay pending hearing of an application to set aside default judgment and file a defence. The borrowers had already been refused a stay three weeks earlier. The Judge dismissed the application on several grounds as follows:
- There had not been a material change in circumstances since the previous stay application;
- The borrowers failed to mention the earlier judgment and therefore did not give full and frank disclosure;
- The borrowers knowingly falsely executed a declaration as to business and investment purposes (and the loan would not otherwise have been made) and therefore did not have clean hands; and
- One of the borrowers was bankrupt and could not prosecute the motion.