VC George J:

This is the 3rd defendant's appeal against the Senior Assistant Registrar granting O. 14 judgment against him.

The plaintiff bank had granted certain banking facilities to the 1st defendant company which facilities were secured by a debenture dated 11 April 1983 by which all the assets of the 1st defendant including all moveable and immoveable property and undertakings of the company "both present and future" were charged to the bank.

The 2nd and 3rd defendants guaranteed the payment on demand of the monies owing by the 1st defendant.

Due demand was made for payment and on the failure to receive any payments the instant writ was caused to be issued. The 1st and 2nd defendants allowed judgment to be entered against them. The 3rd defendant resisted the claim. He filed a defence and opposed the O. 14 application.

Two aspects of the suggested defence merit consideration. First there is the contention that there was an implied warranty that the bank was obliged to enforce the charge under the debenture before proceeding to enforce the guarantee. The second contention is that the bank not crystalising the debenture and appointing receivers was negligent on its part