Aquamore Credit Equity Pty Ltd v Hung; First on First Development Pty Ltd v Aquamore Credit Equity Pty Ltd [2021] NSWSC 1681

Supreme Court New South Wales

Medium Neutral Citation: Aquamore Credit Equity Pty Ltd v Hung; First on First Development Pty Ltd v Aquamore Credit Equity Pty Ltd [2021] NSWSC 1681 Hearing dates: 4, 5 and 6 May 2021 Date of orders: 21 December 2021 Decision date: 21 December 2021 Jurisdiction: Common Law Before: Meagher JA Decision: See [150] Catchwords: CONTRACTS — loan agreement — where deed of amendment varied date for repayment — whether condition precedent to that deed satisfied CONTRACTS — loan agreement — where Lower Rate of interest of 2.5% per month — where Higher Rate of 5% whilst event of default subsists — whether event of default occurred — whether clause imposing Higher Rate unenforceable as penalty MORTGAGES AND SECURITIES — mortgages — where mortgagee purportedly exercised power of sale — whether mortgagee authorised to exercise power of sale — whether mortgagee breached equitable and statutory obligations in that exercising power Legislation Cited: Corporations Act 2001 (Cth), ss 9, 420A Real Property Act 1900 (NSW), ss 57, 58 58A Cases Cited: 2-6 First Ave Pty Ltd v Aquamore Credit Equity Pty Ltd [2018] NSWSC 980 Andrews v Australia & New Zealand Banking Group Ltd (2012) 247 CLR 205; [2012] HCA 30 Arab Bank Australia Ltd v Sayde Developments Pty Ltd (2016) 93 NSWLR 231; [2016] NSWCA 328 Artistic Builders Pty Ltd v Elliot & Tuthill (Mortgages) Pty Ltd [2002] NSWSC 16; (2002) 10 BPR 19,565 Artistic Builders Pty Ltd v Elliot & Tuthill (Mortgages) Pty Ltd [2002] NSWSC 16; (2002) 10 BPR 19,565 Bevham Investments Pty Ltd v Bellgot Pty Ltd (1982) 149 CLR 494; [1982] HCA 45 Boz One Pty Ltd v McLellan [2015] VSCA 68; (2015) 105 ACSR 325 Cavendish Square Holding BV v Makdessi [2016] AC 1172 CME Properties (Australia) Pty Ltd v Prime Capital Securities Pty Ltd [2016] WASC 231 Commonwealth Bank of Australia v Hadfield (2001) 53 NSWLR 614; [2001] NSWCA 440 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 GE Capital Australia v Davis (2002) 180 FLR 250; [2002] NSWSC 1146 Hoole v Smith (1881) 17 Ch D 434 In the matter of Australasian Barrister Chambers Pty Ltd (in liq) [2017] NSWSC 597 Integral Home Loans Pty Ltd v Interstar Wholesale Finance Pty Ltd (2007) 2 BFRA 23; [2007] NSWSC 592 Investec Bank (Australia) Ltd v Glodale Pty Ltd (2009) 24 VR 617; [2009] VSCA 97 James v Australia & New Zealand Banking Group Ltd (2018) 97 NSWLR 663 Kellas-Sharpe v PSAL Ltd (2013) 2 Qd R 233; [2012] QCA 371 Lordsvale Finance Plc v Bank of Zambia [1996] QB 752 Notaras v Sly & Weigall; Notaras v Newman Psaltis [2005] NSWCA 275 O'Dea v Allstates Leasing System (WA) Pty Ltd (1983) 152 CLR 359; [1983] HCA 3 Paciocco v Australia & New Zealand Banking Group Limited (2016) 258 CLR 525; [2016] HCA 28 Ringrow Pty Ltd v BP Australia (2005) 224 CLR 656; [2005] HCA 71 Robophone Facilities Ltd v Blank [1966] 1 WLR 1428 Stockl v Rigura Pty Ltd [2004] NSWCA 73; (2004) 12 BPR 23,151 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Category: Principal judgment Parties: Aquamore Credit Equity Pty Ltd (Plaintiff, 2019/371915; First defendant, 2020/341930) Edgar Hung (First defendant, 2019/371915) Trevor Chappell (Second defendant, 2019/371915) First on First Development Pty Ltd (Plaintiff, 2020/341930) Allen Hsu (Second defendant, 2020/341930) Zachary Chang (Third defendant, 2020/341930) Representation: Counsel: B Le Plastrier and R Sud (Plaintiff, 2019/371915; Defendants, 2020/341930) F Corsaro SC (Defendants, 2019/371915; Plaintiff, 2020/341930)