City Garden Australia Pty Ltd (subject to deed of company arrangement) as trustee for the Ming Tian City Garden Unit Trust v Gemi 130 Pty Ltd

In the Supreme Court of New South Wales, City Garden Australia Pty Ltd, acting as trustee for the Ming Tian City Garden Unit Trust and subject to a deed of company arrangement, sought an interlocutory injunction against Gemi 130 Pty Ltd. The dispute concerned the actions of a receiver and manager appointed over properties owned by City Garden, which were subject to security interests held by third and fourth respondents.

The primary legal issue before the court was whether the receiver and manager should be restrained from dealing with rental income and sale proceeds derived from the properties pending the determination of an appeal. The court was asked to consider if an injunction was warranted to preserve the status quo in relation to these funds and assets.

Meagher JA granted the interlocutory injunction, finding that it was appropriate to restrain the receiver and manager from paying away moneys or dealing with property held in that capacity to the direction of Gemi 130 and Bridge Street until the conclusion of the appeal hearing. The court's reasoning, though not extensively detailed in the provided text, appears to have been guided by the need to preserve assets pending the resolution of the appeal, indicating a consideration of the potential prejudice to the applicant if the appeal were successful and the assets had already been dissipated. The court also directed a process for any party seeking to amend the terms of the injunction.