Commonwealth Bank of Australia v Pascoe and Scott as trustees of the estate of Usha Wati Charan [2018] NSWSC 1332

Supreme Court New South Wales

Medium Neutral Citation: Commonwealth Bank of Australia v Pascoe and Scott as trustees of the estate of Usha Wati Charan [2018] NSWSC 1332 Hearing dates: 10 August 2018 Date of orders: 31 August 2018 Decision date: 31 August 2018 Jurisdiction: Equity - Applications List Before: Parker J Decision: See [55] Catchwords: BANKRUPTCY – effect of bankruptcy on property and proceedings – vesting in trustee by operation of sequestration order – Bankruptcy Act 1966 (Cth), ss 60, 116 – bankrupt's proprietary rights not a "personal injury or wrong"

EQUITY – equitable remedies – account – account between mortgagor and mortgagee – discussion of circumstances where an account between parties is taken

MORTGAGES AND SECURITIES – sale of properties by mortgagee – surplus paid into court – competing claims to surplus – intervening equitable interest – equity of exoneration

PRACTICE AND PROCEDURE – Supreme Court procedure – Trustee Act 1925 (NSW), s 95 – payment of monies into court – procedure compared to interpleader proceedings brought by stakeholder Legislation Cited: Bankruptcy Act 1966 (Cth), ss 60, 116 Real Property Act 1900 (NSW), ss 57, 58 Trustee Act 1925 (NSW), s 95 Uniform Civil Procedure Rules 2005 (NSW), Pt 46 Cases Cited: Bofinger v Kingsway Group Ltd (2009) 239 CLR 269; [2009] HCA 44 Commonwealth Bank of Australia v Hadfield (2001) 53 NSWLR 614; [2001] NSWCA 440 Daemar v Industrial Commission (NSW) [No 2] (1990) 22 NSWLR 178 De La Rue v Hernu, Peron & Stockwell Ltd [1936] 2 KB 164 Farrugia v Official Receiver in Bankruptcy (1982) 58 FLR 474 Moss v Eaglestone (2011) 83 NSWLR 476; [2011] NSWCA 404 Parsons v McBain (2001) 109 FCR 120; [2001] FCA 376 Pendlebury v Colonial Mutual Life Assurance Society Ltd (1912) 13 CLR 676; [1912] HCA 9 Residential Housing Corporation v Esber (2011) 80 NSWLR 69; [2011] NSWCA 25 St George Bank v Meredith [2017] NSWSC 961 Ultimate Property Group Pty Ltd v Lord (2004) 60 NSWLR 646; [2004] NSWSC 114 Texts Cited: J D Heydon and M J Leeming, Meagher, Gummow and Lehane's Equity: Doctrines and Remedies (LexisNexis Butterworths, 5th ed, 2015) 924 [26-140] Category: Procedural and other rulings Parties: Commonwealth Bank of Australia (Plaintiff) Scott Darren Pascoe & Andrew John Scott the Trustees of the property of Usha Wati Charan, a former Bankrupt (First Defendants) William Paul Cotter as the trustee of the bankrupt estate of Prabhakar Charan (Second Defendant) Prabhakar Charan (Third Defendant) Representation: Counsel: I Hoskinson (First Defendant) R Notley (Second Defendant)