Glen Steward took out loan from Sanbond. The debt is guaranteed by Hill Samual (the respondent). Glen Anil indemnified the respondent against any loss if Glen Steward should default on the payment to Sanbond. Surety bonds over certain property were provided by Glen Anil to Hill Samual as repayment if the latter would occur. Glen Steward did default on the payment. Six months later Glen Anil is placed under liquidation. The liquidators of Glen Anil argue that the bonds (provided to Hill Samual) does not confer preference. The application was dismissed and an appeal was
