B Pty Ltd & Anor and Batavia & Anor

In the Supreme Court of Victoria, Justice Cronin considered an application by B Pty Ltd and another (the Plaintiffs) against Batavia and another (the Defendants). The dispute concerned the entitlement to proceeds from the sale of a property located at D Street, Suburb E, Victoria, and the distribution of funds held in a controlled monies account.

The court was required to determine the extent of the Plaintiffs' beneficial ownership interests in the property and the proceeds of its sale, and to establish the nature and priority of the First Defendant's equitable charge over those proceeds. Furthermore, the court needed to ascertain the correct distribution of funds from the controlled monies account, including the satisfaction of the Plaintiffs' claims, interest, and costs, as well as the claims of the Australian Taxation Office.

Justice Cronin granted the Plaintiffs' application, declaring their entitlement to specific amounts from the property sale proceeds based on their beneficial ownership. The court also found that the First Defendant's interest in the proceeds was subject to an equitable charge in favour of each Plaintiff for specified sums. The court then ordered the distribution of funds from the controlled monies account, prioritising payments to the Plaintiffs, followed by the satisfaction of interest and costs awarded against the First Defendant. The remaining balance was to be applied towards the ATO's garnishee notice, subject to other proceedings.