The claimant sought payment under a guarantee issued by the bank. The bank refused to honour the bond, arguing that it had been obtained by some fraud. The claimant was refused summary judgment on the basis that since the defence went to the validity of the bond, arguments about it being similar to a cheque or other promissory note were not effective.
Held: The appeal failed. There was no basis for seeking to extend the principal that such instruments were to be treated like cash to situations where the underlying validity of the bond was being challenged. The bank had a real prospect of establishing its defence, and summary judgment was properly refused.
Judges:
Potter LJ, Mance LJ, Nourse
Citations:
Gazette 19-Jul-2001, Times 31-Jul-2001
Jurisdiction:
England and Wales
Banking, Commercial
Updated: 08 May 2022; Ref: scu.89394
