Hope Capital 2 Limited v Stephen Michael Jones
[2024] EWHC 1308 (Ch)
India Infrastructure Finance Company (UK) Limited v Reliance Naval & Engineering Limited & Ors
4 July 2023
[2023] EWHC 1612 (KB)
High Court
A company lent money, and got guarantees from several people. The borrower didn't pay back. The guarantors said they shouldn't have to pay because things changed later, but the judge said the original agreement was clear and they still had to pay.
Key Facts
- •India Infrastructure Finance Company (UK) Limited (Claimant) sought summary judgment against Reliance Naval & Engineering Limited, Skill Infrastructure Limited, Nikhil Prataprai Gandhi, and Bhavesh Prataprai Gandhi (Defendants) for outstanding loan amounts.
- •The loan was originally to Reliance Naval & Engineering Limited (previously Pipavav Defence), secured by corporate and personal guarantees from the Defendants.
- •A subsequent purchase agreement saw Reliance Defence taking over, agreeing to release the guarantees, but failing to do so.
- •The Defendants argued the Claimant's actions after the purchase agreement released them from the guarantees, pointing to their participation in lender meetings and a refinancing scheme.
- •The Claimant maintained the guarantees remained valid and enforceable.
Legal Principles
Summary judgment is granted if the defendant has no real prospect of successfully defending the claim and there is no other compelling reason why the case should be disposed of at trial.
CPR r.24.2
Outcomes
Summary judgment granted for the Claimant against the Second, Third, and Fourth Defendants.
The court found the Defendants' arguments lacked merit. The court rejected the Defendants' claims that the Claimant's actions released them from the guarantees, finding no evidence of collusion or an obligation on the Claimant to secure alternative security. The court held that the guarantees remained valid and enforceable despite the change in management and subsequent events.