Allatech Pty. Limited & Anor. v. Law Mortgage Queensland Pty. Limited [1999] NSWSC 925

Allatech Pty. Limited & Anor. v. Law Mortgage Queensland Pty. Limited [1999] NSWSC 925

There is a serious question to be tried as to whether the interest was payable otherwise than from a draw-down without reasonable notice. The balance of convenience favours granting an interlocutory injunction, as the consequences for plaintiffs of the appointment of a receiver are serious and the defendant’s security appears more than adequate to ensure repayment.

Parties
Plaintiff: Allatech Pty. Limited; Plaintiff: Kalidome Pty. Limited; Plaintiff: Whitehall Property Holdings Pty. Limited; Plaintiff: Blue Hills Management Pty. Limited; Defendant: Law Mortgage Queensland Pty. Limited
Jurisdiction
Australia
Judgment Date
08 September 1999
Procedural Posture
Application for Interlocutory Injunction / Interlocutory Stage (hearing of Application for Injunction)
Outcome
Interlocutory injunction granted restraining the defendant from exercising remedies under the mortgage until 21 February 2000 or further order.
Legal Topics
Injunctions, Balance of Convenience, Mortgages, Default Under Loan Agreement
Equity Banking and Finance Property Law Injunctions Balance of Convenience Mortgages Default Under Loan Agreement

Case Brief

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Parties

Allatech Pty. Limited

Plaintiff

Kalidome Pty. Limited

Plaintiff

Whitehall Property Holdings Pty. Limited

Plaintiff

Blue Hills Management Pty. Limited

Plaintiff

Law Mortgage Queensland Pty. Limited

Defendant

Procedural Posture

Application for Interlocutory Injunction / Interlocutory Stage (hearing of Application for Injunction)

Legal Issues

  1. 1 Whether there is a serious question to be tried in relation to the alleged defaults under the loan agreement justifying the defendant exercising remedies including appointment of a receiver
  2. 2 Whether the balance of convenience supports the grant of an interlocutory injunction restraining the defendant from exercising remedies under the mortgage

Ratio Decidendi

There is a serious question to be tried as to whether the interest was payable otherwise than from a draw-down without reasonable notice. The balance of convenience favours granting an interlocutory injunction, as the consequences for plaintiffs of the appointment of a receiver are serious and the defendant’s security appears more than adequate to ensure repayment.

Court Disposition

Interlocutory injunction granted restraining the defendant from exercising remedies under the mortgage until 21 February 2000 or further order.

Orders

  • Plaintiffs to provide notice of proposed settlements and application of proceeds to the defendant (7 days’ notice).
  • Defendant to provide notice if it intends to treat any settlement as a default (7 days’ notice).