A DEBE dentist has been ordered to repay $125,000 after a High Court judge rejected her claim that she was pressured into guaranteeing a loan for her former partner, who later went to prison and defaulted on the debt.
In a ruling delivered yesterday, Justice Frank Seepersad found that dentist Sharmila Ramroop fully understood the financial arrangement she entered into and could not escape liability under the guarantee she signed.
The lawsuit was brought by Siparia businessman Gerard Tang Foon, who said he lent $250,000 in 2021 to support the operations of Package Taxi Ltd, a company run by Ramroop’s then-common-law partner, Farand Deonanan. Ramroop was also a director of the company and signed on as guarantor.
Only $124,996 was repaid, leaving a balance of $125,004 outstanding. Tang Foon turned to the court after attempts to recover the money failed.
In dismissing Ramroop’s defence, Justice Seepersad rejected her contention that she had acted under undue influence or lacked the mental capacity to appreciate the transaction.
The judge noted the evidence showed Ramroop was the most educated party involved, clearly understood the nature of the agreement, and acknowledged that the funds were injected into a company managed by her partner in which she held a directorship.
While Ramroop had argued that her pregnancy at the time affected her judgment, the court found no evidence to support that claim. Justice Seepersad said the evidence instead showed that she continued to operate her dental practice and was capable of making informed decisions.
“The defendant made an unfortunate choice to align herself with Mr Deonanan, who ultimately ended up in prison,” the judge said, adding that she nonetheless understood the terms of the guarantee she signed.
He emphasised that “every choice made has a resulting consequence”, and ruled that the consequence in this case was that Ramroop must repay the outstanding $125,000.
Deonanan, who later became the subject of media reports after being jailed for larceny linked to fraudulent car sales, did not repay the loan in full and his current whereabouts remain unknown.
Justice Seepersad found that the guarantee was valid and enforceable, and ordered Ramroop to repay the balance owed.
Tang Foon was represented by attorney Abdel Mohammed; while Ramroop was represented by Robin Ramoutar.
Elroy Latson
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