Bankrupt Estate of Piccolo v National Australia Bank Ltd [1999] FCA 386

FEDERAL COURT OF AUSTRALIA

Bankrupt Estate of Piccolo v National Australia Bank Ltd

[1999] FCA 386 MORTGAGE – Bank loan to company – Repayment guaranteed by directors ‑ Mortgage by guarantors to support guarantee – Construction of mortgage – Charging clause apt to pick up advances made to company whether or not at request of mortgagors – Consideration clause requiring request of mortgagors – Whether consideration clause conclusive. GUARANTEE – Circumstances in which guarantors discharged – Guarantee granted to secure bill facility and overdraft – Overdraft cancelled – Fresh facilities granted later – Whether guarantors discharged – Whether fresh facilities a "variation, extension or replacement" of original facilities. Scholefield Goodman & Sons Ltd v Gange (unreported, Supreme Court of New South Wales, 4 December 1979) not followed National Bank of Nigeria Ltd v Awolesi [1964] 1 WLR 1311 applied Bank of India v Patel [1981] 1 Lloyd's Rep 507 applied National Bank of New Zealand Ltd v West [1978] 2 NZLR 451 considered Geelong Building Society v Encel [1966] 1 VR 594 considered Inland Revenue Commissioners v Raphael [1935] AC 96 cited Ankar Pty Ltd v National Westminster Finance (Aust) Ltd (1987) 162 CLR 549 applied Corumo Holdings Pty Ltd v Itoh Ltd (1991) 24 NSWLR 370 applied Morris v Baron & Company [1918] AC 1 applied Tallerman & Co Pty Ltd v Nathan's Merchandise (Vict) Pty Ltd (1957) 98 CLR 93 cited United Dominions Trust (Jamaica) Ltd v Shoucair [1969] 1 AC 340 cited Scarf v Jardine (1882) LR 7 HL 345 cited

RE: JOHN PETER PICCOLO, EX PARTE: DEAN ROYSTON MCVEIGH (Trustee of the Bankrupt Estate of John Peter Piccolo) and NATIONAL AUSTRALIA BANK LIMITED

VG 7566 OF 1997

SUNDBERG J 8 APRIL 1999 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VG 7566 OF 1997