The court observed that the issue was whether the appellant was liable for
the buyers default and the court held that the institution was to honor the
bond regardless of any dispute arising from the contract in respect of which
the bond was issued.
The court considered a ground that the trial judge’s order to wound up for
inability to pay a debt was not right and guided by the principle that the
court of appeal should not interfere with the exercise of discretion of a trial
judge unless satisfied that the judge misdirected himself on a matter but the
trial judge had found that the appellant was indebted to the respondent.
In the result, the appeal was dismissed.