Indian Pacific Interiors v Nichols [2008] NSWSC 911

In this case the wife gave a guarantee and her property was used to payout the bank’s mortgage. She then appointed a receiver over her husband’s company using the bank’s charge (she maintained she stood in the banks shoes by virtue of subrogation). The court agreed noting:

Where guarantors, out of their own property, procure the payment of a guaranteed debt directly to the creditor rather than putting the money into the hands of the debtor.. [they] thereby have the benefit of the equitable doctrine of subrogation.

Click here to read the full judgment

Scroll to Top