A firm of solicitors borrowed money from the Respondent fund.
The Appellants were jointly and severally liable to repay the debt
as partners in that firm.
The Respondent served statutory demands on the Appellants
following non-payment of the loan. The Appellants unsuccessfully
applied to set aside the statutory demands and appealed to the High
Court. The Appellants argued that the debt was genuinely disputed
as the loan had, in fact, been advanced based on a separate verbal
agreement and/or, the loan was tainted with illegality because
receivers were appointed over the fund and were pursuing
proceedings against various third parties alleging mismanagement of
the fund and fraud.
The Deputy Judge agreed with the Chief Registrar that there was
no evidence on the facts of an oral agreement and, even if there
had been, the Judge would have found that the loan was repayable on
demand, which it had not been. On illegality, the Judge found that
the purported illegality was entirely collateral to the loan
agreement and did not relate to the recovery of this particular
The Appellants also argued that there was an implied
representation given by the Respondent that it was carrying on a
proper business in good faith. The Judge found however that, even
if such a representation could be implied and had been breached,
that would entitle the Appellants to rescind the agreement, but
they would still have to repay the loan, which they
The Judge therefore dismissed the appeal.
Noble and Stott v Axiom (Case numbers 109 and
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