Auzhair Supplies Pty Ltd (In Liq) v Gerace

In *Auzhair Supplies Pty Ltd (In Liq) v Gerace*, the plaintiff, Auzhair Supplies Pty Ltd (in liquidation), sought an extension of the operation of a caveat lodged against certain land. The interest claimed by the plaintiff was an equitable charge that secured payment of a judgment. However, this judgment had subsequently been set aside on appeal to the Court. The plaintiff was also in the process of seeking special leave to appeal to the High Court of Australia.

The primary legal issue before the Court was whether the operation of the caveat should be extended, notwithstanding that the underlying judgment it secured had been nullified. This required the Court to consider the plaintiff's prospects of success in its application for special leave to appeal to the High Court and the potential for the plaintiff to establish a caveatable interest in the land.

The Court, applying the principles governing the extension of caveats, noted that it was accepted that the plaintiff had a reasonably arguable case for the grant of special leave to appeal to the High Court. In light of this, and upon the plaintiff undertaking to the Court in terms set out in short minutes of order, the Court determined that it was appropriate to extend the operation of the caveat. The extension was granted until the plaintiff's application for special leave to appeal was heard and determined, and if special leave was granted, until the substantive appeal proceedings in the High Court were concluded.

The Court ordered that the costs of the application be costs in the proceedings and remitted the proceedings to the Equity Division of the Court.