Elnic Holdings Pty Ltd v New Wave Development (NSW) Pty Ltd [2005] NSWSC 1226

New South Wales Supreme Court

Elnic Holdings Pty Ltd v New Wave Development (NSW) Pty Ltd [2005] NSWSC 1226 CITATION : This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 12 September 2005

JUDGMENT DATE : 12 September 2005

JUDGMENT OF : Brereton J

CATCHWORDS : MORTGAGES - EQUITY - remedies - injunctions – injunction to restrain exercise of power of sale – whether rule in Inglis' case allows for mortgagee to be sufficiently protected without payment in - EQUITY - equitable doctrines - marshalling - application by purchaser from mortgagor to restrain prior mortgagee from selling – whether owner of subsequent equitable interest can enforce equity to marshal against prior mortgagee.

Baglioni v Cavalli (1900) 83 LT 500 Bank of New South Wales v City Mutual Life Assurance Society Ltd [1969] VR 556 Commonwealth Trading Bank v Colonial Mutual Life Assurance Society Ltd [1970] Tas SR 120 Flint v Howard [1893] 2 Ch 54 Inglis v Commonwealth Trading Bank (1972) 126 CLR 161 Jenkins v Brahe & Gair (1902) 27 VLR 643 CASES CITED : Manks v Whitely [1911] 2 Ch 448 Mir Bros Projects Pty Ltd v Lyons [1977] 2 NSWLR 192 Noyes v Pollock (1886) 32 Ch D 53 The Chioggia [1898] P 1 Union Bank of Georgetown v Laird 15 US 390 (1817) Wallis v Woodyear (1855) 2 Jur NS 179 Webb v Smith (1885) 30 Ch D 192

Elnic Holdings Pty Ltd (first plaintiff) James Lee (second plaintiff) Sing Wai Lee (third plaintiff) New Wave Development (NSW) Pty Ltd (first defendant) PARTIES : Vincent Newey (second defendant) James Lal, Prem Lal & Vince Lal (third defendants) Kantoam Pty Ltd (fourth defendant) Eclipse Prudent Mortgage Corporation Ltd (fifth defendant)