A & T Promotions Pty Ltd v Ikin & AG (CQ) Pty Ltd

A & T Promotions Pty Ltd brought an action against Ikin and AG (CQ) Pty Ltd in the Supreme Court of Queensland, seeking recognition and priority of their equitable mortgage over certain land. The dispute arose because the land was registered in the name of the first defendant, Ikin, but both A & T Promotions and the second defendant, AG (CQ) Pty Ltd, claimed equitable mortgages over the property. A & T Promotions argued that their equitable mortgage, established earlier in time, should take precedence over the later claim by AG (CQ) Pty Ltd.

The court was required to determine whether the earlier equitable mortgage of A & T Promotions should be given priority over the subsequent claim of AG (CQ) Pty Ltd. This involved examining the principles governing the priority of equitable interests in land, particularly when two parties claim equitable mortgages over the same property. The court had to consider the relative timing of the creation of the equitable mortgages and any other relevant factors that might influence the priority between the competing claims.

The court found in favour of A & T Promotions, declaring that they held an equitable mortgage interest in the land, which took precedence over the interest claimed by AG (CQ) Pty Ltd. The court reasoned that the principle of 'first in time, first in right' applied to equitable mortgages, and since A & T Promotions' equitable mortgage was established first, it was entitled to priority. The court further restrained the first defendant from dealing with the land in a way that contravened the equitable interests of A & T Promotions and AG (CQ) Pty Ltd. It also ordered AG (CQ) Pty Ltd to remove a caveat from the land and deliver a signed transfer document to A & T Promotions. Additionally, AG (CQ) Pty Ltd was directed to pay A & T Promotions' costs of the proceedings.

The final orders declared A & T Promotions' priority over the land, restrained the defendants from dealing with the property in a manner inconsistent with the equitable interests, removed a caveat, and ordered AG (CQ) Pty Ltd to deliver a signed transfer and pay costs.