Rathner (Liquidator), in the matter of PE Capital Nominees Pty Ltd (In Liq) v Runner Investment Limited [2023] FCA 754
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File number(s): |
VID 585 of 2021 |
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Judgment of: |
MCEVOY J |
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Date of judgment: |
5 July 2023 |
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Catchwords: |
MORTGAGES AND SECURITIES – where trustee company legally owned land which was the subject of three registered mortgages – company defaulted and went into liquidation – application by liquidators for orders in relation to trust assets – cross claims in relation to the land by mortgagees – where first mortgagee refused to exercise power of sale under s 77 of the Transfer of Land Act 1958 (Vic) – where second mortgagee sought to exercise the power of sale – where first and third mortgagees contended that the second mortgagee could not exercise the power of sale by reason of the terms of a priority deed – whether first mortgagee could enforce the priority deed to prevent the sale of the land by the second mortgagee – whether first mortgagee had the benefit of the priority deed under a trust – validity of notice of default issued under s 76 of the Transfer of Land Act 1958 (Vic) by second mortgagee – whether first and third mortgagee entitled to discretionary relief – whether second mortgagee could validly exercise power of sale by discharging first mortgage debt from proceeds of sale – when first mortgagee's entitlement to interest ends – whether utility in granting relief – where second mortgagee would have been entitled to relief had the first mortgagee not subsequently disposed of the land |
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Legislation: |
Corporations Act 2001 (Cth) s 468; Sch 2, s 90-15 Interpretation of Legislation Act 1984 (Vic) s 38 Transfer of Land Act 1958 (Vic) ss 45(2), 76, 77, 90(3), 116A Trustee Act 1958 (Vic) s 63 Property Law Act 1958 (Vic) ss 18, 50, 56(1), 78, 86, 222 Property Law Act 1969 (WA) s 11(1) Federal Court (Corporations) Rules 2000 (Cth) r 2.2 Federal Court Rules 2011 (Cth) r 16.05(2) Conveyancing and Law of Property Act 1881 (UK) s 5 Law of Property Act 1925 (UK), s 56(1), 78(1), 205(ix) |
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Cases cited: |
Accordent Pty Ltd and Portellos v Bresimark Nominees Pty Ltd [2008] SASC 196 ASIC v PE Capital Funds [2022] FCA 76 Australia and New Zealand Banking Group v Bangadilly Pastoral Co Pty Ltd (1978) 139 CLR 195 Bahr v Nicolay (No 2) (1988) 164 CLR 604 Barns v Queensland National Bank Ltd (1906) 3 CLR 925 Boensch v Pascoe [2019] HCA 49; 268 CLR 593 Clarke v Burnie City Council [2008] TASSC 75 Commonwealth Bank of Australia v Lee (1966) 22 ACSR 574 Consolidated Trust Co Ltd v Naylor (1936) 55 CLR 423 DBB16 v Commonwealth of Australia [2022] FCA 783 Deguisa v Lynn [2019] SASCFC 107 Equus Financial Services Ltd v RMBL Investments Pty Ltd (1996) 22 ACSR 744 Evans Marshall & Co Ltd v Bertola SA [1973] 1 WLR 349 Fincore v Webb [2020] VSC 831 Fitt v Luxury Developments Pty Ltd [2000] VSC 258 Foran v Wight (1989) 168 CLR 385 Forsyth v Blundell (1973) 129 CLR 477 Gulic v Boral Transport Ltd [2016] NSWCA 269 Gumland Property Holdings Pty Limited v Duffy Bros Fruit Market (Campbelltown) Pty Ltd (2008) 234 CLR 237 Gunn v Commonwealth Bank of Australia [1922] Tas LR 26 Henry Roach (Petroleum) Pty Ltd v Credit House (Vic) Pty Ltd [1976] VR 309 Hensley v Reschke (1914) 18 CLR 452 In the matter of Australian Property Custodian Holdings Limited (in liquidation) (receivers and managers appointed) (as responsible entity of the Prime Retirement Aged Care Property Trust) [2012] NSWSC 679 Jacobson v National Australia Bank (unreported, Supreme Court of Victoria, 15 April 1994) Jones v Bartlett [2000] HCA 56; (2000) 205 CLR 166 Korda v Australian Executor Trustees (SA) Limited (2015) 255 CLR 62 Kravchenko v The Rock Building Society (2009) 26 VR 400 Massoud v Nationwide News Pty Ltd [2022] NSWCA 150 MBF Investments Pty Ltd v Nolan [2011] VSCA 114 McDonald's Australia Limited v Bendigo and Adelaide Bank Limited and Benalla Retail Investments Pty Ltd [2014] VSCA 209 McLellan v Sharantelli Pty Ltd [2000] VSC 174 Measures v McFadyen (1910) 11 CLR 723 Midland Brick Company Pty Ltd v Welsh [2006] WASC 122; (2006) 32 WAR 287 Netglory Pty Ltd v Caratti [2013] WASC 364 Paciocco v Australia and New Zealand Banking Group Ltd [2015] FCAFC 50; (2015) 236 FCR 199 Partridge v McIntosh & Sons Ltd (1933) 49 CLR 453 Pendlebury v Colonial Mutual Life Assurance Society Ltd (1912) 13 CLR 676 Pethybridge v Stedikas Holdings Pty Ltd [2007] NSWCA 154 Pirie v Registrar-General (1962) 109 CLR 619 Price v Spoor [2021] HCA 20; (2021) 270 CLR 450 Quadramain Pty Ltd v Sevastapol Investments Pty Ltd (1976) 133 CLR 390 Queensland Premier Mines Pty Ltd v French (2007) 235 CLR 81 Re Wily as Liquidator of Anglican Insurance Ltd [2009] NSWSC 696 Services Board v Gillespie-Jones (2013) 249 CLR 493 Simmons v Lee [1998] 2 Qd R 671 Specialist Diagnostic Services Pty Ltd v Healthscope Ltd (2012) 41 VR 1 State Bank of Victoria v Parry and Others (1989) 7 ACLC 226 Tipperary Developments Pty Ltd v Western Australia [2009] WASCA 126; (2009) 38 WAR 488 Toohey v Gunther (1928) 41 CLR 181 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107 Ultimate Property Group Pty Ltd v Lord (2004) 60 NSWLR 646 Westpac Banking Corporation Ltd v Kingsland (1991) 26 NSWLR 700 Whild v GE Mortgage Solutions Pty Ltd [2012] VSC 212 Wilson v Darling Island Stevedoring & Lighterage Co Ltd (1956) 95 CLR 43 Winterton Constructions Pty Ltd v Hambros Australia Limited (1991) 101 ALR 363 Yarrangah Pty Ltd v National Australia Bank Ltd [1999] NSWSC 97 Bank of New South Wales v O’Connor (1889) 14 App Cas 273 Beswick v Beswick [1968] AC 58 Bishop v Church (1751) 2 Ves Sen 371; 28 ER 238 Chelsea and Waltham Green Building Society v Armstrong [1951] 1 Ch 853 Cheltenham and Gloucester plc v Krausz [1997] 1 WLR 1558 Chesterfield and Midland Silkstone Colliery Co (Ltd) v Hawkins (1865) 3 H & C 677 China and South Sea Bank Ltd v Tan Soon Gin (Alias George Tan) [1990] 1 AC 536 Co-operative Insurance v Argyll Stores Ltd [1997] UKHL 17; [1998] AC 1 Devon Nominees Ltd v Hampstead Holdings Ltd [1981] 1 NZLR 477 Downsview Nominees Ltd v First City Corporation Ltd [1993] AC 295 Federated Homes Ltd v Mill Lodge Properties Ltd [1980] 1 WLR 594; (1980) 1 All ER 371 Formby v Barker [1903] 2 Ch 539 Graham v Seal (1918) 88 LJ Ch 31 Gyles v Hall (1726) 2 P Wms 378; 24 ER 774 Hunter v Macklew (1846) 67 ER 902 Harmer v Armstrong [1934] 1 Ch 65 In re Schebsman; Official Receiver v Cargo James v Rumsey [1879] 11 Ch D 398 Superintendents (London) Ltd [1944] Ch 83 Kaolim Private v United Overseas Land Ltd [1983] 1 WLR 472 London City Council v Allen [1914] 3 KB 642 Lord Midleton v Eliot (1847) 15 Sim 531 Lord Strathcona Steamship Co Ltd v Dominion Coal Co Ltd [1926] AC 108 Manser v Dix (1857) 8 De GM & G 703; 44 ER 561 Noakes v Rice [1902] AC 24 P & A Swift... |
