The Court held that a personal guarantee covering losses arising from a head contractor's failure to pay for works performed did not extend to cover the failure to repay loans advanced by the subcontractor to fund the head contractor's adjudication and litigation processes, as those losses arose from a separate transaction rather than flowing naturally from the initial failure to pay for works. The Court went behind a consent judgment entered shortly before the debtor's petition to examine the true liability, finding that the close personal relationship between the bankrupt and the creditor's controller, combined with vague and conclusory invoices, required more definitive proof of indebtedness than was provided. The application for a declaration as to voting entitlements was dismissed because even if some lesser indebtedness could be established, it would be insufficient to alter the voting outcome at any creditors' meeting.
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