Pepper Finance Corporation Limited v Edwards

In the case of Pepper Finance Corporation Limited v Edwards, the dispute arose after the plaintiff obtained a default judgment against the defendants for the recovery of possession of the mortgaged property. Seven years later, Mrs Edwards applied to set aside the default judgment, alleging reliance on her husband for borrowing from the plaintiff and using part of the funds for a development project. The court was required to determine whether the plaintiff disclosed facts that gave rise to a defence of unconscionability against the mortgagee and whether the defendant has an arguable or prima facie defence on the merits.

The court found that the female defendant had an explanation for her delay in defending the claim, as she was unaware of the proceedings due to her husband's concealment of their difficulties because of her health problems. However, the court concluded that the defendant did not have an arguable or prima facie defence on the merits. The court found that the female defendant's proposed defence was misconceived and premature, as it was necessary to first set aside the default judgment before seeking to amend her defence to claim additional forms of relief.

The court dismissed the application filed on 15 December 2017, granted leave to the plaintiff to start enforcement proceedings to enforce the default judgment against the defendants, and adjourned the question of costs to a later date.