The plaintiffs moved for summary judgment to enforce unpaid promissory notes and related guarantees against a corporate borrower and its principal.
The defendants relied solely on a limitation period defence under the Limitations Act, 2002, arguing the claims were statute-barred.
The court held that the promissory notes, which contained fixed maturity dates, were not demand obligations and the limitation period began running at maturity, rendering those claims statute-barred.
However, the guarantees constituted free‑standing demand obligations with no fixed time for payment, and because no demand had been made prior to the action the limitation period had not begun to run.
Summary judgment was therefore granted on the guarantees but dismissed with respect to the promissory notes.
