Credebt Exchange Ltd v Philip Doran

• Jurisdiction: Ireland
• Judge: Ms. Justice Siobhán Phelan
• Judgment Date: 15 December 2025
• Neutral Citation: [2025] IEHC 740
• Court: High Court
• Docket Number: Record No. 2019/1277 S

Between

Credebt Exchange Limited

Plaintiff

and

Philip Doran

Defendant

[2025] IEHC 740

Record No. 2019/1277 S

THE HIGH COURT

EX TEMPORE RULING of Ms. Justice Siobhán Phelan, delivered on the 15 ^th day of December, 2025

INTRODUCTION

1 . This matter comes before me as an application for liberty to enter final judgment in summary proceedings in reliance on a guarantee and indemnity which the Defendant allegedly provided in respect of indebtedness of a company, Rap Fast Limited (hereinafter “the Company”), to the Plaintiff. The Defendant is a litigant in person.

2 . In summary, the Plaintiff sues on foot of a personal guarantee signed by the Defendant on the 16 ^th of February, 2017, in which liability was capped at €300,000. The Plaintiff claims the Company owed €1,009,650.82 to it as of March, 2018, but advances its entitlement to summary judgment with reference to the principal sum traded, namely €898,319.68, to avoid necessity to engage with technical and complex interest and sell-rate calculations.

3 . The Defendant disputes the figures relied upon by the Plaintiff and argues, inter alia, that the Plaintiff's figures are inaccurate, the Plaintiff improperly caused the business of the Company to implode by appointing a receiver prematurely and the Plaintiff is not entitled to summary judgment by reason of delay. The Defendant also contends that the application should not be permitted to proceed having been struck out for non-appearance and reinstated later that same day on the return date on the Motion.

BACKGROUND AND CHRONOLOGY

4 . The following pre-litigation chronology emerges from the papers in this case:

06 May 2016 A Master Agreement was executed between Plaintiff and the Company under which agreement the Plaintiff advanced finance facilities to the Company. In summary, under the terms of the Master Agreement, the Plaintiff financed the supply of raw materials (for onward manufacturing of shrink wrap to the Company), essentially acting a re-seller on agreed terms, with the raw materials being delivered directly to the Company by the supplier, paid for by the Plaintiff and then invoiced by the Plaintiff to the Company. Once the product was manufactured and sold, under the terms of the Master Agreement between the Plaintiff and the Company, the purchase price received in respect of the manufactured product was paid to the Plaintiff with the proceeds of sale being applied first in satisfaction of the sums owing to the Plaintiff and the balance being paid to the Company.

01 Nov 2016 First Debenture granted by the Company to the Plaintiff.

27 Jan 2017 The Defendant (Philip Doran) contacts Plaintiff re: trade transaction in process and it was confirmed the Company owed approximately €470,000.

30 Jan 2017 In correspondence with the Defendant it was confirmed that the Company owed €470,000 as at that date.

15 Feb 2017 The Defendant communicated with the Plaintiff by letter concerning a potential personal guaranteed for the debts of the Company.

16 Feb 2017 Personal Guarantee & Indemnity signed by Defendant (limit €300,000) in respect of Company's indebtedness. The Guarantee and Indemnity as executed by the Defendant defined “ Guaranteed Obligations” as:

“…all monies, obligations and liabilities (including, without limitation in respect of principal, interest, discount commission, fees and expenses, which now are or at any time in the future may be or become due, owing or incurred by the Originator [i.e. Rap Fast Limited] to Credebt Exchange pursuant to the Repayment Agreement and where the context so permits any reference to the “Guaranteed Obligations” includes a reference to any of them; the Guaranteed Obligations will not exceed EUR300,000

Under the terms of the Guarantee and Indemnity (Clause 2.1.1) executed by the Defendant he agreed he:

“irrevocably and unconditionally guarantees to Credebt Exchange, forthwith upon written demand being made by Credebt Exchange (the due and punctual, payment, observance, performance and discharge of, and undertakes to pay or discharge, all of the Guaranteed Obligations;”

He further agreed (Clause 2.5):

“In the event that the Guarantor fails to make any payment due under this Guarantee and Indemnity (the “Liquidated Sum”), the-Guarantor consents to judgment being registered against him in respect of the Liquidated Sum.”

In addition, it was agreed (Clause 4.12) that:

“The parties acknowledge that they have been afforded the opportunity to take Independent legal advice on the terms of this Agreement prior to entering into it. Each party further acknowledges that it understands the effect and implications of this Agreement and that it has entered Into this Agreement without any coercion of any description.”

20 Mar 2017 Second Debenture executed by the Company in favour of Plaintiff.

27 Apr 2017 Receiver appointed over the Company's assets under Debentures.

15 Mar 2018 Demand letter issued by Plaintiff to Company directors for €1,009,650.82. In this letter it was stated:

“We refer to the Loan Agreements. Terms defined in the Loan Agreements shall have the same meaning where used in this letter. We refer also to the facilities made available to you thereunder (the “Facilities”).

We refer also to the security and guarantees (the “Security”) provided and relied upon under and in connection with the Loan Agreements, which Security has been provided to Credebt Exchange Limited (the “Secured Lender”) in respect of all sums due and owing from time to time from you to the Secured Lender, including, without limitation, all amounts owing under the Loan Agreements.

We hereby notify you that an Event of Default has occurred under clause 8.1(a) of the Loan Agreements.

At the close of business on 2018-03-15, the aggregate sum of €1,009,650.82 (one million and nine thousand six hundred and fifty Euro eighty-two cents representing the principal sum of € 886,327.33 together with interest of €123,323.00 was due to the Secured Lender under the Loan Agreements.

We hereby notify you that we are demanding payment forthwith from you of the sum of €1,009,650.82 (one million and nine thousand six hundred and fifty Euro eighty-two cents and all interest thereon to the date of payment of the said sum in full at the rates provided for in the Loan Agreements. Interest is presently accruing at the rate of per day in aggregate.

We hereby give you notice that if such monies and interest are not paid and received by us forthwith, we may exercise all or any of our rights, including without prejudice, our rights to enforce the Security (including without limitation, the personal guarantee of Philip Doran dated 16th Day of February 2017 in respect of the obligations owing by you to the Secured Lender), and appoint a receiver, without giving you further notice or warning, and further, we hereby demand payment of all costs, claims, charges damages, expenses or losses incurred by the Secured Lender whether in making this demand or otherwise.”

23 Mar 2018 In response to the letter of demand, the Company disputed Plaintiff's figures in writing stating:

“Your position of withholding all funds lodged into our account in Credebt caused the implosion of our business.”

24 Apr 2018 The Plaintiff wrote to the Defendant with reference to his Guarantee and Indemnity stating:

“We hereby notify you that an Event of Default has occurred under the Loan Agreements including, without limitation, pursuant to Clause 8.1(a) thereof.

At the close of business on 15 March 2018 the aggregate sum of EUR1,009.650.82 (one million, nine thousand, six hundred and fifty euro and eighty-two cent) representing the principal sum of EUR886,327.33 together with interest of EUR123,323.00 was due to Credebt Exchange under the Loan Agreements.

On 15 March 2018 we demanded from Rap Fast the sum of EUR1,009,650.82 (one million, nine thousand, six hundred and fifty euro and eighty two cent) and this amount has not been paid.

In accordance with the limited recourse provisions contained in the Guarantee, we hereby notify you that we are demanding payment forthwith from you of the sum of EUR300,000 (three hundred thousand euro).

We hereby give you notice that if such monies and interest are not paid and received by us forthwith, we may exercise all or any of our rights, including without prejudice, our rights to enforce the Security and appoint a receiver, without giving you further notice or warning, and further, we hereby demand payment of all costs, claims, charges damages, expenses or losses incurred by Credebt Exchange whether in making this demand or otherwise.”

26 Apr 2018 Arthur Cox Solicitors, for the Plaintiff, rejected the Company's dispute of indebtedness and provided reconciliation data including emails from the Company's own accountant showing the total value of c-ETRs traded and booked in the accounts of the Company from 10 ^th October until 21 ^st of June, 2017 as being a sum of in excess of €2,700,000. A statement was enclosed with this letter and referred to the Plaintiff's online portal which provides access to reports on transactions. In the letter it was confirmed:

“Pursuant to its rights under Clause 6.19 of the Master Agreement, our client applied all payments, reserves and deposits received in reduction of the liabilities owing to it by Rap Fast pursuant to the Loan Agreements. Accordingly, as is shown in the statement attached at Appendix 3, the sums demanded of you by Credebt on 15 March 2018 represent the net amounts owing after those funds have been lawfully applied against the debt owing under the Loan Agreements.”

The letter continued to state:

“Pursuant to the Master Agreement, Rap Fast was accepted as a member of the Exchange and Credebt agreed to acquire and on supply to Rap Fast certain raw materials required to manufacture its products. Rap Past's liability to Credebt with respect to the supply of those raw materials was...