Chiu & Wei and Anor

The proceeding concerned an application by the plaintiffs, Chiu and Wei, for an interlocutory injunction to restrain the defendant from proceeding with the sale of certain property. The plaintiffs sought to prevent the sale on the basis that they had a proprietary interest in the property, which they alleged was being transferred in breach of an agreement. The application was heard in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the plaintiffs had established a sufficient proprietary interest in the property to warrant the grant of an interlocutory injunction. This required the Court to consider the nature of the agreement between the parties and whether it created a registrable interest or an equitable interest that could be protected by injunction. The Court also had to assess whether the balance of convenience favoured the granting of an injunction, considering the potential harm to both parties.

In its reasoning, the Court examined the terms of the agreement and the conduct of the parties. It applied principles relating to the creation of equitable interests in land, particularly in circumstances where a formal legal interest had not yet been registered. The Court considered whether the plaintiffs had demonstrated a strong prima facie case that they held such an interest, and whether damages would be an inadequate remedy for any breach. The assessment of the balance of convenience involved weighing the potential loss to the plaintiffs if the sale proceeded against the potential loss to the defendant if the sale were restrained.

The Court ultimately granted the interlocutory injunction, restraining the defendant from selling the property pending the final determination of the proceedings. The Court was satisfied that the plaintiffs had established a sufficient proprietary interest and that the balance of convenience favoured the grant of the injunction.