XCHRX THE KWANGTUNG PROVINCIAL BANK, HONG KONG BRANCH v. TANG POK MAN

HCA 14070/1998

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 14070 OF 1998

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J U D G M E N T

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1. This is an application by a guarantor to set aside a judgment in default against him; the master dismissed the application on 2 June 1999 and the guarantor now appeals. I have to consider, among other things, whether the guarantor has a defence which has a realistic prospect of success.

2. The defence advanced is that, on 2 September 1998, the guarantor was released from his guarantee. The guarantor relies on a comment made at a meeting on that date by the creditor's solicitor that she saw no reason why the creditor would wish to continue with its claims once the guarantor had signed some documents giving the creditor additional security for the payment of the principal debt. The guarantor says that he was thereby led to believe that the creditor's claims were thereby fully settled.

3. In my judgment, this defence has no realistic prospect of success. What was said by the creditor's solicitor on 2 September 1998 was altogether too vague to amount to any release of either the principal debtor or the guarantor; indeed counsel for the guarantor was quite unable to clarify whether what was said was claimed to release the principal debtor, or the guarantor, or both of them.

4. This application is dismissed with costs.