Hatton National Bank Limited v. Helenluc Garments Ltd. and Others – sllr 1999 volume 2 page 365

In the case between HATTON NATIONAL BANK LIMITED (plaintiff) and HELENLUC GARMENTS LTD. and others (defendants), the court considered whether claims based on an overdraft facility and a mortgage bond were prescribed, and examined the enforceability of a guarantee clause through which the 2nd to 6th defendants waived the right to plead prescription. It was determined that claims on overdrafts become prescribed three years from the date of each advance, and mortgage bond claims are barred after ten years. The guarantee clause by which guarantors waived the prescription defense was deemed valid and enforceable, regardless of when it was executed. The Commercial High Court’s dismissal for prescription was set aside, and the matter was remitted with instructions to proceed against the defaultin