Australian Mortgage v Baclon

The case of Australian Mortgage Securities Limited v Baclon [2021] FCAFC 26 involved a dispute concerning the validity of a notice to complete, a notice of termination, and the enforceability of a deed of licence. The Full Court of the Federal Court of Australia was asked to determine whether the respondents were in breach of their obligations under a loan agreement by failing to provide documents related to development approval, and whether the lender was entitled to terminate the loan agreement and demand completion of the mortgagee's sale of land. The respondents argued that the request for documents was not a requisition, that they were ready and willing to complete, that the time given for completion was unreasonable, and that the notices were not validly served. The lender contended that the deed of licence could be terminated without notice.

The court considered the nature of the requisition, the readiness and willingness of the respondents to complete, the reasonableness of the time given for completion, the validity of the notices, and the enforceability of the deed of licence. The court held that the request for documents was not a requisition, as it did not seek the production of documents to enable the lender to complete the mortgagee's sale of land. The court found that the respondents were not ready and willing to complete, as they had not provided the necessary documents and had failed to take reasonable steps to obtain them. The court held that the time given for completion was reasonable, as it allowed the respondents to obtain the documents and complete the sale. The court also held that the notices were validly served, as they were in writing and complied with the requirements of the deed of licence. Finally, the court held that the deed of licence could be terminated without notice, as it contained a clause allowing for termination in the event of a breach of any term or condition.