Toyota Finance Australia Ltd v Easy Dollar Pty Ltd [2011] NSWSC 828

Supreme Court New South Wales

Medium Neutral Citation: Toyota Finance Australia Ltd v Easy Dollar Pty Ltd [2011] NSWSC 828 Hearing dates: 1 August 2011 Decision date: 01 August 2011 Jurisdiction: Equity Division - Duty List Before: Slattery J Decision: Upon the plaintiff providing an undertaking to the Court to pay to the defendant any surplus proceeds of sale of the goods, the defendant will be directed to notify the Director General of the Department of Fair Trading that its interest in the goods has ceased to be a registrable interest so as to allow the Director General to cancel that interest in the Goods Act register. Directions are given to notify the defendant of this amended form of relief before final orders are made. Catchwords: STATUTES - acts of parliament - operation and effect of statutes - Registration of Interests in Goods Act 1986 ("the Goods Act") - Registration of Interests in Goods Regulation 2004 - plaintiff has a registered mortgage interest in goods under the Goods Act which has priority over the defendant's registered interest in the same goods - plaintiff takes possession of the goods and seeks the exercise of its power of sale - goods unsaleable if offered for sale subject to defendant's subsequent registered interest - plaintiff offers an undertaking to the Court to pay to the defendant any surplus proceeds of sale of the goods, if the defendant's registered interest is cancelled in the register - no statutory mechanism exists under Goods Act to permit a sale free of the defendant's subsequent interest - whether Court can direct the cancellation of the defendant's interest. Legislation Cited: Registration of Interests in Goods Act 1986 (NSW) Registration of Interests in Goods Regulation 2004 (NSW) Cases Cited: Deputy Commissioner of Taxation v Horsburgh (1983) 2 VR 591 Heid v Reliance Finance Corp Pty Ltd Limited (1983) 154 CLR 326 King v Gousettis (1986) 5 NSWLR 89 Lane v Horlock (1853) 61 ER 576 Sovar v Henry Lane Pty Ltd (1967) 116 CLR 397 Texts Cited: E.Tyler, P.Young and C.Croft, Fisher and Lightwood's Law of Mortgage, Butterworths 1995, Chapter 24, Priorities of Mortgages Category: Interlocutory applications Parties: Plaintiff - Toyota Finance Australia Limited Defendant - Easy Dollar Pty Limited Representation: Plaintiff - D.M.Farrar, FARRAR Lawyers Defendant - No appearance File Number(s): 2011/223305 Publication restriction: No