The Court dismissed the liquidator's bank guarantee claims holding that drawn-down proceeds became the property of the respondent contractors, not subject to any trust or proprietary interest of the companies in liquidation. The Court held that while the Hastie entities have a right to return of surplus proceeds from bank guarantees after accounting for the contractors' claims, this was not a pleaded claim and could not be introduced at this stage. The Court ordered costs on the ordinary basis rather than indemnity basis, finding that while the bank guarantee claims were novel and ultimately unsuccessful, they were not pursued in wilful disregard of clearly established law.
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