The Court granted summary judgment to CBA against the borrower, corporate guarantor, and bankrupt personal guarantor, holding that the guarantor's bankruptcy on his own debtor's petition was a material non-monetary default incapable of remedy, satisfying the Banking Code of Practice requirements (cll 80-83) for enforcement. The Court refused to cross-vest CBA's debt recovery and possession claims to the FCFCA, holding those claims arose under general law and were not a 'special federal matter', but ordered transfer of the fifth defendant's cross-claim concerning apportionment of equity between her and the bankruptcy trustees as it arose under the Bankruptcy Act. The Court also held that the fifth defendant, as neither a mortgagor under s 94 nor an incumbrancee under s 95 of the Conveyancing Act 1919 (NSW), had no basis to compel assignment of the mortgage to her upon payment of the guaranteed amount, and struck out that prayer of the cross-claim.
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