JUDGMENT

Ravinthran N Paramaguru JCA:

Introduction

[1] The short point that arises in this appeal is this. It is whether the partial protection granted to guarantors in a bankruptcy action can only be availed in a loan case or whether it also applies generally to all guarantors including those who guaranteed a trade debt. In the case at hand, the guarantee in question was given for a trade debt as opposed to a loan. The learned Senior Assistant Registrar held that leave of court must be obtained before bankruptcy action can be instituted against the guarantor. She set aside the bankruptcy notice and creditor petition. The High Court thought otherwise and reversed the Senior Assistant Registrar's decision. Hence this appeal, which is by the guarantor, who is also the judgment debtor. For ease of reference, we shall refer to the pa

Background Facts

[2] The following undisputed background facts are gratefully extracted from the judgment of the High Court.