Australia and New Zealand Banking Group Limited v State of Queensland

The case of Australia and New Zealand Banking Group Limited v State of Queensland involved the dispute over the vesting of a property in the hands of the applicant, the banking group, following the bankruptcy of the mortgagor, Elizabeth Jane McKenzie. The trustee in bankruptcy disclaimed the property, and the dispute arose over whether the bank, as the registered mortgagee, was entitled to a vesting order under section 133(9) of the Bankruptcy Act. The Queensland Supreme Court was the venue for this case.

The primary legal issue before the court was whether the bank, as the registered mortgagee, was entitled to a vesting order of the property in question under section 133(9) of the Bankruptcy Act. The court had to determine if the bank could exercise its powers as a mortgagee in possession without having to serve a notice of default or demand, and if it could include the disclaimed property in the calculation of the debt secured by the mortgage. Additionally, the court needed to decide the order of priority for the application of the proceeds of any sale of the property.

The court found in favour of the bank, concluding that the statutory provisions allowed the bank to obtain a vesting order without the need to serve a notice of default or demand. The court reasoned that the disclaimed property could be included in the calculation of the debt secured by the mortgage, and the bank was entitled to apply the proceeds of any sale in the order specified in the orders granted. The court's decision was based on the statutory language and the purpose of the Bankruptcy Act, which aimed to ensure that creditors were fairly compensated for debts owed by bankrupts.

The final orders granted the bank the right to vest the estate in fee simple in the property, allowed the bank to deal with the property as a mortgagee in possession, and specified the order of priority for the application of the proceeds of any sale. The bank was also required to provide an account of its payments and receipts to the trustee of the bankrupt estate, the bankrupt herself, and the Registrar of the Court.