Australia and New Zealand Banking Group Ltd v Bangadilly Pastoral Co Pty Ltd

Australia and New Zealand Banking Group Ltd (ANZ) appealed to the High Court of Australia against a decision of the Supreme Court of New South Wales, which had granted an injunction restraining ANZ from exercising its power of sale over certain land owned by Bangadilly Pastoral Co Pty Ltd (Bangadilly). The dispute arose from a mortgage granted by Bangadilly to ANZ, and ANZ's subsequent attempt to sell the mortgaged property due to alleged defaults under the mortgage agreement.

The High Court was required to determine whether the Supreme Court had erred in granting the injunction. Specifically, the court had to consider whether Bangadilly had established a sufficient equitable right to an injunction, which typically requires demonstrating a serious question to be tried and that the balance of convenience favoured granting the injunction. This involved examining the nature of the alleged defaults, the terms of the mortgage, and the adequacy of damages as a remedy.

The High Court held that the Supreme Court had erred in granting the injunction. Their Honours reasoned that Bangadilly had not demonstrated a serious question to be tried regarding the validity of ANZ's exercise of its power of sale. The court found that the alleged breaches of the mortgage agreement were not of a nature that would entitle Bangadilly to equitable relief, particularly in circumstances where the bank was acting within its contractual rights. The principles applied centred on the established requirements for obtaining an interlocutory injunction, particularly the need for a strong prima facie case or a serious question to be tried, and the court's reluctance to restrain a mortgagee's power of sale without compelling grounds.

Consequently, the High Court allowed the appeal, set aside the injunction granted by the Supreme Court of New South Wales, and ordered that Bangadilly pay ANZ's costs of the appeal.