Williams, C.J. & Anor v National Australia Bank Ltd [1995] FCA 364

Williams, C.J. & Anor v National Australia Bank Ltd [1995] FCA 364

The motion was dismissed because, although there was a triable issue about whether a demand was made in January 1995 and therefore whether Jenner's appointment was valid, the evidence at that stage suggested that an earlier demand had been made, the debt and security were not disputed, the debt remained unpaid, NAB could reappoint a receiver while default continued, NAB's financial standing meant damages would be readily recoverable, and the applicants were not prepared to bring the debt amount into Court; accordingly damages were adequate and the balance of convenience lay heavily against interlocutory relief.

Jurisdiction
Australia
Judgment Date
30 May 1995
Procedural Posture
Application Under S 418 a of the Corporations Law With Interlocutory Notice of Motion / Interlocutory Motion to Restrain the Receiver and Manager From Selling or Otherwise Dealing With Selmoore's Assets and Undertaking Pending Determination of the Application
Outcome
Motion dismissed.
Legal Topics
['validity of Appointment of Receiver and Manager' 'demand Under Debenture' 'event of Default' 'standing of Directors Under S 418 A' 'adequacy of Damages' 'balance of Convenience']
['corporations Law' 'receivership' 'secured Transactions' 'interlocutory Injunctions'] ['validity of Appointment of Receiver and Manager' 'demand Under Debenture' 'event of Default' 'standing of Directors Under S 418 A' 'adequacy of Damages' 'balance of Convenience']

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Procedural Posture

Application Under S 418 a of the Corporations Law With Interlocutory Notice of Motion / Interlocutory Motion to Restrain the Receiver and Manager From Selling or Otherwise Dealing With Selmoore's Assets and Undertaking Pending Determination of the Application

Legal Issues

  1. 1 ["Whether there was a serious question to be tried as to the validity of Jenner's appointment as receiver and manager of Selmoore on 26 April 1995." "Whether NAB made a demand on Selmoore in January 1995 before Jenner's appointment, thereby giving rise to an event of default under debenture no 439909." "Whether interlocutory relief restraining Jenner from dealing with Selmoore's assets should be granted pending determination of the application." 'Whether damages would be an adequate remedy and where the balance of convenience lay.']

Ratio Decidendi

The motion was dismissed because, although there was a triable issue about whether a demand was made in January 1995 and therefore whether Jenner's appointment was valid, the evidence at that stage suggested that an earlier demand had been made, the debt and security were not disputed, the debt remained unpaid, NAB could reappoint a receiver while default continued, NAB's financial standing meant damages would be readily recoverable, and the applicants were not prepared to bring the debt amount into Court; accordingly damages were adequate and the balance of convenience lay heavily against interlocutory relief.

Court Disposition

Motion dismissed.

Orders

  • ['The motion should be dismissed.']