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ANZ Bank (Vanuatu) Ltd v Noel [1997] VUSC 31; Civil Case 009 of 1997 (29 August 1997)

IN THE SUPREME COURT OF

THE REPUBLIC OF VANUATU

HELD AT LUGANVILLE/SANTO

(Civil Jurisdiction)

Civil Case No.9 of 1997

BETWEEN:

ANZ BANK (Vanuatu) LTD

Plaintiff

AND:

JOHN NOEL

Defendant

Coram: K. Mataskelekele J

C.Thomas - Clerk

Saling Stephens for the plaintiff

Joel Noel, defendant in person

JUDGEMENT

Introduction

(a) On 17 July 1992, the plaintiff entered into a loan agreement with Mr Lulu Livo, the borrower. On the same date a guarantee was signed between the plaintiff and the defendant that the plaintiff under which the plaintiff advanced VT1,080,537 to the borrower.

(b) The borrower defaulted in his repayment of the sum borrowed, and as a consequence the defendant as guarantor became indebted to the plaintiff. On 12 December 1996, the amount owing by the defendant to the plaintiff was VT.764,961.

(c) On 12 December 1996 the plaintiff served a notice of demand on the defendant for payment of the sum of vt764,961 with accrued interest at 16% per annum.

(d) The defendant has not paid the outstanding debt demanded.

(e) A specially Endorsed Writ of Summons and statement of claim of the plaintiff dated 19 June 1997 was filed on the same date.

(f) The court hearing took place on 8 July 1997.

Issue

The first issue is whether the defendant is legally bound to repay the debt guaranteed by him.

The second issue is whether the plaintiff may seize and convert the defendant's leasehold title No.03/0I72/068 as payment for the defendant's debt.

Decision:

The decision of the court is as follows:

1. The defendant is legally bound to pay to the plaintiff the outstanding debt of vt764,961 as well as 16% per annum of that debt commencing from 12 December 1996.

2. The document signed by the defendant on 17 July 1992 acknowledging his deposit of Lease Title No.03/0I72/008 with the plaintiff does not amount to a mortgage agreement and does not entitle the plaintiff to seize the said title as security for the defendant's debt to the plaintiff.

Dated the 29th Day of August 1997.

BY ORDER OF COURT

K. Mataskelekele

Judge

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