The decision confirms that the discredited US decision First National Bank of Montgomery v Daly, which suggests bank loans are mere bookkeeping entries without real consideration, is 'worthless authority' and reliance on it is frivolous. A mortgagor seeking to set aside a default judgment for possession must demonstrate a defence on the merits to the mortgage claim; complaints about building defects or the conduct of a builder do not constitute a defence to the mortgagee's claim for possession where the borrower has defaulted on repayments.
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