Background
Fundit Limited, as trustee of the Banjo Small Business Loan Fund, alleged that it lent TG Canberra Pty Limited $280,000 under a loan agreement dated about 22 March 2024. Sukru Kocak gave Fundit an unconditional and irrevocable written guarantee and indemnity for the borrower’s obligations.
The borrower defaulted. Fundit claimed that $264,451.45 was owing when it commenced proceedings in August 2025, with no payments made by either the borrower or Mr Kocak. Fundit later sought default judgment against Mr Kocak. The claim against a second defendant had already been dismissed without costs.
The Court’s Holding
Harrison AJ entered judgment by default for Fundit against Mr Kocak for $285,535.43. Mr Kocak had been served with the statement of claim on 23 October 2025, but filed and served neither a notice of appearance nor a defence, and did not attend when the matter was called.
The judgment comprised the outstanding loan amount of $264,451.45, prescribed-rate interest under s 100 of the Civil Procedure Act 2005 (NSW) of $16,157.98, and filing, service and solicitor costs.
Key Takeaways
- A lender may obtain default judgment against a guarantor where the guaranteed borrower defaults and the guarantor does not appear or defend.
- The court awarded the debt, prescribed-rate interest and the stated proceeding costs.
- Service of the originating claim, followed by a failure to file an appearance or defence, supported the default judgment.
Why It Matters
The decision is a straightforward enforcement of a personal guarantee in commercial lending. It shows that an unresponded-to claim against a guarantor can proceed to judgment for the unpaid debt, interest and recoverable costs.