CME Properties (Australia) Pty Ltd v Prime Capital Securities Pty Ltd

The case involved a dispute between CME Properties (Australia) Pty Ltd, the mortgagor, and Prime Capital Securities Pty Ltd, the mortgagee. The mortgagor sought to prevent the mortgagee from exercising its power of sale under section 420A of the Corporations Act. The dispute was heard in the Federal Court of Australia. The mortgagor argued that the mortgagee was not acting in good faith and for the purposes conferred by the Act when exercising the power of sale.

The primary legal issues before the court were whether the mortgagor had established a prima facie case for an interim injunction and whether the balance of convenience favoured the grant of such an injunction. The court considered these issues in light of section 132A of the Corporations Act and relevant principles of common law and equity. The mortgagor had not made any payment into court, which influenced the court's assessment of the prima facie case. The court also evaluated the balance of convenience, considering the specific facts of the case.

The court found that the mortgagor had not established a prima facie case for an interim injunction. The court held that the balance of convenience did not favour the grant of an injunction, as the considerations turned on the unique facts of the case. The court emphasised the duty of the mortgagee to exercise the power of sale in good faith and for the purposes conferred by the Act. Given these findings, the court dismissed the application for an interim injunction.