Aquamore Finance Pty Ltd v Blank Canvas Communications Pty Ltd

Aquamore Finance Pty Ltd sought to enforce a writ of possession against Blank Canvas Communications Pty Ltd. The dispute centred on the ownership and possession of a commercial property which Blank Canvas was occupying, with Aquamore claiming to have acquired the property through a mortgagee sale. Blank Canvas resisted the enforcement of the writ, arguing that it had a legitimate interest in the property as it was in the process of selling the property to a third party. The matter was brought before the Federal Circuit Court of Australia.

The court was required to determine whether there were any circumstances that would warrant staying the execution of the writ of possession. This involved balancing the interests of the mortgagee in enforcing the writ with Blank Canvas's interest in completing the sale of the property. The court had to consider whether Blank Canvas's pending sale was genuine and if it was in the interest of justice to allow the sale to proceed.

In determining the matter, the court noted the importance of allowing businesses to continue operating without unnecessary disruption. The court held that where there was a genuine sale in progress, and the sale would not prejudice the rights of the mortgagee, it was appropriate to grant a stay of execution of the writ of possession. The court found that Blank Canvas had a legitimate interest in completing the sale and that the sale was genuine and not a mere tactic to delay the mortgagee's rights. Accordingly, the court granted the application for a stay of execution of the writ of possession.

The court's final orders included a stay of execution of the writ of possession until such time as the sale to the third party was completed, or for a period of six months, whichever occurred first. This allowed Blank Canvas to complete the sale of the property while protecting the rights of Aquamore to ultimately enforce the writ if the sale did not proceed.