The plaintiff bank brought a motion for summary judgment against a co-borrower on two demand loans, while the defendant brought a cross‑motion seeking dismissal of the claim.
The defendant argued the claim relating to a revolving loan was statute‑barred under the Limitations Act, 2002 and asserted defences of change of position, estoppel, and breach of a duty of good faith.
The court held that interest payments automatically debited from a co‑borrower’s account constituted acknowledgements extending the limitation period for a demand loan.
The court further held that internal bank documentation errors and statements by tellers did not amount to representations releasing the defendant from liability, and the change of position defence was unavailable in a contractual debt claim.
Summary judgment was granted in favour of the bank.
