In the matter of Beechworth Land Estates Pty Ltd (admins apptd) and Griffith Estates Pty Ltd (admins apptd); ; Cussen and of Beechworth Land Estates Pty Ltd v Douglas Estate Holdings Pty Ltd and Others [2019] NSWSC 1129

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Beechworth Land Estates Pty Ltd (admins apptd) and Griffith Estates Pty Ltd (admins apptd); ; Cussen and of Beechworth Land Estates Pty Ltd v Douglas Estate Holdings Pty Ltd and Others [2019] NSWSC 1129 Hearing dates: 4, 5, 11 and 12 December 2018 Date of orders: 30 August 2019 Decision date: 30 August 2019 Jurisdiction: Equity - Corporations List Before: Parker J Decision: See [104]. Catchwords: CORPORATIONS — Voluntary administration — Administrator — Right to indemnity – whether Administrators' remuneration and disbursements takes priority over secured and unsecured creditors – Corporations Act 2001 (Cth), ss 443D, 443E(3)(c) – whether Administrators otherwise entitled to equitable lien – no determination sought on quantum.

EQUITY — Equitable charges and liens — Lender's lien – Whether deposit of certificates of title in context of debtor-creditor relationship gives rise to equitable security over mortgagor's rights – priority between mortgagor's equitable security interest and earlier grant of security over funds advanced – postponing conduct – later equitable security prevails over earlier legal charge.

CORPORATIONS — Debentures, charges and mortgages — defectively drafted and incomplete loan documentation – no distinct security interest created where deed drafted "in aid" of separate mortgage instrument. Legislation Cited: Corporations Act 2001 (NSW), ss 442C, 443D, 443E Land Transfer Act 1958 (VIC) Personal Property Securities Act 2009 Cases Cited: Bank of New South Wales v O'Connor (1889) 14 App Cas 273 Barry v Heider (1914) 19 CLR 197 Coad v Wellness Pursuit Pty Ltd (In Liq) (2009) 40 WAR 53; (2009) 226 FLR 91; (2009) 71 ACSR 250; [2009] WASCA 68 Hamilton v Donovan Oates Hannaford Mortgage Corp Ltd (2007) 207 FLR 163; (2007) 61 ACSR 82; (2007) 25 ACLC 95; [2007] NSWSC 10 Re Universal Distributing Co Ltd (1933) 48 CLR 171 Theodore v Mitstford (2005) 221 CLR 612; [2005] HCA 45 Texts Cited: J D Heydon, M J Leeming and P J Turner Meagher, Gummow and Lehane's Equity Doctrines and Remedies (5th ed, 2015) Category: Principal judgment Parties: 2014/229138 Neil Robert Cussen and Ezio Marco Senatore in their capacity as former Joint and Several Administrators of Beechworth Land Estates Pty Ltd (in Liquidation) (ACN 160 808 631) (Respondent)