Citadel Financial Corporation Pty Ltd v Elite Highrise Services Pty Ltd (No 2) [2014] NSWSC 1769

Citadel Financial Corporation Pty Ltd v Elite Highrise Services Pty Ltd (No 2) [2014] NSWSC 1769

Where there are competing claims to goods subject to a sale, and possible proprietary interests notified on the PPSR, removal of disputed goods should be restrained until the court can determine the claims at a scheduled interlocutory hearing, even if there is some detriment to receivers or third party purchasers.

Parties
Plaintiff/applicant: Citadel Financial Corporation Pty Limited ACN 106 654 844; First Defendant/first Respondent: Elite Highrise Services Pty Limited (Receivers and managers appointed) ACN 155 992 573; Second Defendant/second Respondent: Murray Roderick Godfrey and David Nicholas Iannuzzi (as receivers and managers of Elite Highrise Services Pty Limited (receivers and managers appointed) ACN 155 992 573); Third Respondent: CML Payroll Pty Limited ACN 150 688 476; Fourth Respondent: Skyline Apartments Pty Limited ACN 001 451 332 and Pacific Hoardings Pty Limited ACN 134 060 950
Jurisdiction
Australia
Judgment Date
08 December 2014
Procedural Posture
Application to Vary Order / Interlocutory (procedural Application Prior to Interlocutory Hearing)
Outcome
Order of 3 December 2014, as varied 4 December 2014, further varied to prohibit removal of scaffolding until 12 December 2014.
Legal Topics
Interlocutory Relief, Injunctions, Variation of Court Orders, Receivership, Security Interests, Third Party Interests
Equity Civil Procedure Interlocutory Relief Injunctions Variation of Court Orders Receivership Security Interests Third Party Interests

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Parties

Citadel Financial Corporation Pty Limited ACN 106 654 844

Plaintiff/applicant

Elite Highrise Services Pty Limited (Receivers and managers appointed) ACN 155 992 573

First Defendant/first Respondent

Murray Roderick Godfrey and David Nicholas Iannuzzi (as receivers and managers of Elite Highrise Services Pty Limited (receivers and managers appointed) ACN 155 992 573)

Second Defendant/second Respondent

CML Payroll Pty Limited ACN 150 688 476

Third Respondent

Skyline Apartments Pty Limited ACN 001 451 332 and Pacific Hoardings Pty Limited ACN 134 060 950

Fourth Respondent

Procedural Posture

Application to Vary Order / Interlocutory (procedural Application Prior to Interlocutory Hearing)

Legal Issues

  1. 1 Whether the order should be varied to prevent removal of sold scaffolding until an interlocutory hearing
  2. 2 Whether interests of third parties and receivers outweigh applicant's and fourth respondent's claimed security interests

Ratio Decidendi

Where there are competing claims to goods subject to a sale, and possible proprietary interests notified on the PPSR, removal of disputed goods should be restrained until the court can determine the claims at a scheduled interlocutory hearing, even if there is some detriment to receivers or third party purchasers.

Court Disposition

Order of 3 December 2014, as varied 4 December 2014, further varied to prohibit removal of scaffolding until 12 December 2014.

Orders

  • Leave granted to applicant to file notice of motion.
  • Order 3, made 3 December 2014 as varied 4 December 2014, be varied by amending '8 December 2014' in the proviso to '12 December 2014'.