ALS598 Pty Ltd v Kremetis - [2025] NSWSC 1281

Supreme Court

New South Wales

Case Name:	ALS598 Pty Ltd v Kremetis
Medium Neutral Citation:	[2025] NSWSC 1281
Hearing Date(s):	16 October 2025
Date of Orders:	17 October 2025
Decision Date:	17 October 2025
Jurisdiction:	Equity - Duty List
Before:	Brereton J
Decision:	The defendant’s caveats be withdrawn
Catchwords:	REAL PROPERTY – where plaintiffs, as mortgagees in possession, seek that caveats be withdrawn – where plaintiffs have entered into a contract for sale of the property – where defendant opposes the withdrawal on the basis that the plaintiffs acted in bad faith in conducting the sale process – where defendant offers to provide security – defendant’s caveats withdrawn
Legislation Cited:	Conveyancing Act 1919 (NSW) Real Property Act 1900 (NSW)
Cases Cited:	Hanson Construction Materials Pty Ltd v Roberts (2016) 93 NSWLR 1; [2016] NSWCA 240 Investec Bank (Australia) Ltd v Glodale Pty Ltd (2009) 24 VR 617; [2009] VSCA 97 Pendlebury v Colonial Mutual Life Assurance Society Ltd (1912) 13 CLR 676; [1912] HCA 9 Stone v Farrow Mortgage Services Pty Ltd (in liq) [1999] NSWCA 435; 12 BPR 22,175 Webster Investments Pty Ltd v Anderson; Webster Investments Pty Ltd v North Star Developments Pty Ltd (2016) 52 VR 610; [2016] VSC 620 Wright v Insert Pty Ltd [2022] VSC 1
Texts Cited:	N.A.
Category:	Principal judgment
Parties:	ALS598 Pty Ltd (first plaintiff) Nulend Investments 157 Pty Ltd (second plaintiff) Efi Kremetis (defendant)
Representation:	Counsel: M Young SC (plaintiffs) N Kulkarni (defendant) Solicitors: Summer Lawyers (plaintiffs) Ronayne Owens Lawyers (defendant)
File Number(s):	2025/388521
Publication Restriction:	N.A.

JUDGMENT – EX TEMPORE (REVISED FROM THE TRANSCRIPT)

The defendant (Ms Kremetis) is the registered proprietor of two parcels comprising the land at 276 - 278 Prince Charles Parade, Kurnell (the Property). The plaintiffs are the mortgagees in possession of the property.
On 27 June 2025, the plaintiffs, pursuant to the power of sale, entered into a contract for the sale of the property. The defendant subsequently lodged caveats claiming an interest in the nature of a mortgagor’s equitable right to prevent completion of a voidable sale arising from an improper exercise of the power of sale.
By their summons, the plaintiffs seek orders pursuant to s 74MA of the Real Property Act 1900 (NSW) that the caveats be withdrawn as well as associated relief.
The defendant opposes the orders. She wishes that the caveats be maintained pending determination of her claim to set aside the contract.
There was no dispute about the principles that apply on this application and they are set out in Hanson Construction Materials Pty Ltd v Roberts (2016) 93 NSWLR 1; [2016] NSWCA 240 at [77]. In short, the defendant bore an onus of showing that there is a serious issue to be tried as to the existence of the interest claimed in the caveats. If she discharges that onus, the continuation or removal of the caveats depends on the Court’s assessment of the balance of convenience.
In…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading ALS598 Pty Ltd v Kremetis

Details

AGLC: ALS598 Pty Ltd v Kremetis [2025] NSWSC 1281
Case: [2025] NSWSC 1281
Decision Date: 17 October 2025

CaseChat Overview and Summary

The case of ALS598 Pty Ltd v Kremetis was heard in the New South Wales Supreme Court. The plaintiffs, acting as mortgagees in possession, sought the withdrawal of caveats that had been lodged by the defendant, Kremetis, against the property in question. The plaintiffs had entered into a contract for the sale of the property and sought the removal of the caveats to facilitate the sale process. Kremetis opposed the withdrawal of the caveats, arguing that the plaintiffs had acted in bad faith in conducting the sale and that they should be required to provide security for the debt before the caveats were withdrawn.

The primary legal issue before the court was whether the plaintiffs' conduct in proceeding with the sale of the property constituted bad faith, warranting the continuation of the caveats. The court was required to determine if the plaintiffs' actions were justifiable under the circumstances and whether Kremetis' offer to provide security for the debt was a sufficient condition for the withdrawal of the caveats.

The court found that the plaintiffs had not acted in bad faith in proceeding with the sale of the property. It was determined that the sale was conducted in a manner consistent with the interests of all parties involved, including the plaintiffs' obligation to realise the security for the debt. The court further held that Kremetis' offer to provide security for the debt was an acceptable condition for the withdrawal of the caveats. As a result, the court ordered the caveats to be withdrawn on the condition that Kremetis provide the requisite security.

Orders