Supreme Court allows recovery of guarantee payments from guarantor when bank releases guarantor's liability.

The Supreme Court allowed the creditor to recover payments made to the guarantor after the bank released the guarantor from liability. The debtor sold assets to a company whose director had provided a guarantee, using the proceeds to pay down debts and secure the bank's release of the guarantor. The court held that the guarantor could claim reimbursement because the bank's release of liability constituted a benefit that the guarantor was entitled to recover.