ACT Plasterboard Pty Ltd v Pohorukov

The case before the court involved ACT Plasterboard Pty Ltd, the plaintiff, and Pohorukov, the defendant, who was in default. The primary dispute centred around the enforceability of an equitable charge held by the plaintiff over certain properties owned by the defendant. The plaintiff sought judicial sale of the properties out of court and an ancillary order for possession. This case was heard in the Federal Court of Australia.

The court had to decide whether it should grant the plaintiff's application for an order of judicial sale out of court and whether it should make an ancillary order for possession. The defendant contested the enforceability of the equitable charge, arguing that the charge was not properly registered as required by law. The plaintiff, on the other hand, argued that the charge was valid and enforceable. The court had to balance the equities of the parties and consider the relevant legal principles governing equitable charges.

The court held that the equitable charge was valid and enforceable. It found that the requirements for registration were not strictly mandatory and that the plaintiff had taken reasonable steps to protect its interests. The court also noted that the defendant had not demonstrated any prejudice resulting from the lack of registration. Therefore, the court granted the plaintiff's application for an order of judicial sale out of court and made an ancillary order for possession. The court reasoned that the equities favoured the plaintiff, and that the orders were necessary to protect its interests.

The court ordered that the properties be sold by judicial auction out of court and that the defendant be required to deliver possession of the properties to the purchaser upon completion of the sale. The court also ordered that the proceeds of the sale be applied to the satisfaction of the plaintiff's claim to the extent possible. The defendant was granted leave to appeal the decision, but the orders for judicial sale and possession were to proceed in the meantime.