Challenger Managed Investments Limited v Milan Samardic and Stoyan Kiceec

Challenger Managed Investments Limited sought judgment against Milan Samardic and Stoyan Kiceec for personal guarantees they provided on a commercial loan. The company they guaranteed, which was the borrower, defaulted on interest and principal payments, prompting the creditor to call upon the guarantors to remedy the default. After the company's properties were taken possession of, the creditor issued proceedings against the guarantors. The defendants did not appear, and judgment was entered against them. The defendants later sought to set aside the default judgment and to stay the proceedings on the basis of an application under section 56 of the Civil Procedure Act 2005, on the grounds that there were real issues for determination, and on the basis of delay in hearing the proceedings. The court found that the defences did not identify any real issue for determination, and that there was no undue delay in the hearing of the proceedings. The court also noted the contractual entitlement of the creditor to indemnity for legal costs, and ordered that the defendants pay the creditor’s costs on an indemnity basis.