Takemura v National Australia Bank Ltd [2003] NSWSC 339

Reported Decision : (2003) 21 ACLC 608

New South Wales Supreme Court

CITATION : Takemura v National Australia Bank Ltd [2003] NSWSC 339 HEARING DATE(S) : 01/04/03 JUDGMENT DATE : 24 April 2003 JURISDICTION: Equity Division JUDGMENT OF : Young CJ in Eq DECISION : Plaintiff is entitled to mortgages over the surplus monies from the first mortgage and also because of marshalling the proceeds of the sale of AIS's business.

CATCHWORDS : MORTGAGE [16]- Equitable mortgage- Promise to grant mortgage- Money actually lent- Interest rate over 60%- Whether excessive- Effect of high interest rate on equity granting specific performance to mortgagee- Significance of repeal of usury laws. MORTGAGE [66]- Marshalling- Bank holding mortgage over land and business- Plaintiff holding mortgage over land only- Doctrine applies. Conveyancing Act 1919, s 91 Corporations Act 2001, ss 262(7), 588FD, 588FE, 588FF LEGISLATION CITED : Moneylenders Act 1927 Usury, Bills of Lading and Written Memoranda Act 1902, s 3 Usury, Bills of Lading and Written Memoranda (Repeal) Act 1990 Barrett v Hartley (1866) LR 2 Eq 789 Chambers v Goldwin (1804) 9 Ves 254; 32 ER 600 Eyre v Hughes (1876) 2 Ch D 148 Hart v Hart (1881) 18 Ch D 670 CASES CITED : In re Drax [1903] 1 Ch 781 MacDonald v Levy (1833) 1 Legge 39 Pryce v Bury (1853) 2 Drew 41; 61 ER 633 Re O'Leary; ex parte Bayne (1985) 61 ALR 674 Reading Trust Ltd v Spero [1930] 1 KB 492 Wight v Haberdan Pty Ltd [1984] 2 NSWLR 280 Tokuzui Takemura (P) National Australia Bank Ltd (D1) PARTIES : AIS International Pty Ltd (In liquidation) (D2) Southpac Corporate Services Pty Ltd (In liquidation) (D3) Sushi Roll Pty Ltd (in liquidation) (D4) Esanda Finance Corporation Ltd (D5) FILE NUMBER(S) : SC 3751/01 COUNSEL : J E Armfield (P) Miss M Sneddon (D2, 3 & 4) SOLICITORS : Gells (P) Peter Kemp Solicitors (D2, 3 & 4)