Australia and New Zealand Banking Group Ltd v Manasseh

The Australia and New Zealand Banking Group Limited brought an action against Mr Manasseh, in the Federal Court of Australia, to enforce a guarantee provided by Mr Manasseh in relation to his business dealings. The primary dispute centred on whether ANZ Bank was entitled to demand payment under the guarantee, and whether the principles articulated in the High Court case Ankar Pty Ltd v National Westminster Finance (Australia) Ltd applied to prevent ANZ Bank from enforcing the guarantee. Further, it was argued that any subsequent agreement between the parties amounted to a novation, and that ANZ Bank engaged in misleading and deceptive conduct in relation to the guarantee.

The court was required to determine whether ANZ Bank's actions in enforcing the guarantee contravened the 'Ankar' principle, which prevents a creditor from enforcing a guarantee if they have acted unconscionably in procuring the guarantee. The court also needed to ascertain whether a subsequent agreement between the parties amounted to a novation, and if ANZ Bank engaged in misleading and deceptive conduct. Additionally, the court needed to consider whether the guarantee remained enforceable under the original terms.

The court found that ANZ Bank's conduct did not contravene the 'Ankar' principle, as there was no unconscionable conduct on the part of the bank in procuring the guarantee. The court also found that the subsequent agreement between the parties did not amount to a novation, and that ANZ Bank had not engaged in misleading and deceptive conduct. The guarantee was found to remain enforceable under the original terms, and the plaintiffs' claim was dismissed.