Applications of Bizcap AU Pty Ltd; Applications of Hengyi Zhao; Applications of FundIT Ltd

The applicants in this case, Bizcap AU Pty Ltd, Hengyi Zhao, and FundIT Ltd, sought to establish their respective equitable interests in three properties following their sale. The properties were sold by the registered mortgagees, who deposited the proceeds into court pending resolution of the priority disputes between the applicants. Each applicant claimed to have an equitable charge over the properties, and the court was required to determine the merits of these claims and whether there was any conduct that would result in one party's claim being postponed. The primary legal issue was to ascertain the validity and priority of the equitable interests claimed by the applicants.

The court considered the principles of equity and the established legal framework for determining priority between competing equitable interests. It examined the conduct of the parties, including the timing and nature of their dealings with the properties and the mortgagees. The court also looked at whether there had been any conduct that could be characterised as "postponing conduct," which would result in one party's claim being subordinated to another's. The court found that the applicants' claims were not of equal merit and that there was conduct by one of the applicants that warranted postponement of their claim.

Following its analysis, the court determined that the equitable interests of Bizcap AU Pty Ltd and Hengyi Zhao were valid, but that FundIT Ltd's claim was not. The court found that Bizcap AU Pty Ltd had the first equitable interest, followed by Hengyi Zhao, and that FundIT Ltd's claim was postponed due to their conduct. The court ordered that the proceeds held in court be distributed in accordance with the priority of the established equitable interests.