TS&S GLOBAL LIMITED V JOHN FITHIAN FRANKS & ORS

[2007] EWHC 1401 (Ch), Chancery Division, David Richards J, 18 June 2007

Demand guarantee – Surety – Demand – Statutory demand – Whether guarantee contingent on demand or immediately payable

The five defendants were shareholders in a company and had guaranteed its liabilities under a supply contract with the claimant. Statutory demands were served but were set aside by the District Judge on grounds that the guarantees were not immediately payable. David Richards J set aside the order of the District Judge, applying MR Fashions Ltd v BCCI [1993] 3 All E.R. 769 to the effect that the guarantee was immediately payable.