The plaintiff Bank brought an action against the corporate borrower and personal guarantors for defaulting on a loan.
The defendants argued the action was statute-barred because the borrower had not made a payment in over two years, even though the guarantors had made recent payments under a forbearance arrangement.
The court rejected this argument, holding that payments by the guarantors were credited to the borrower's loan account and thus reset the limitation period.
The court granted judgment for the Bank and dismissed the defendants' counterclaim.
The court also awarded full indemnity costs to the Bank as stipulated in the loan and guarantee agreements.
