Equititrust Limited v Bosiljevac

The case of Equititrust Limited v Bosiljevac involved a dispute over a mortgage held by the plaintiff, Equititrust Limited, over a property located at 1 Marseille Court, Sorrento, Queensland. The defendants, who are shareholders and directors of a company, had granted a mortgage over the property to secure their obligations as guarantors of loans made to the company. The dispute arose when the company and the defendants defaulted under the deeds of loan, guarantee, and mortgage. The plaintiff sought to recover possession of the property, arguing that the mortgagee had the right to possession due to the default.

The primary legal issue before the court was whether the mortgagee, Equititrust Limited, was entitled to recover possession of the property following the default by the mortgagors. This involved determining the rights and liabilities of the parties under the mortgage agreement, particularly focusing on the consequences of the mortgagors' default. The court had to consider the terms of the mortgage and whether they provided a right to possession upon default.

The court found in favour of the plaintiff, holding that the mortgagee had the right to recover possession of the property upon the mortgagors' default. The court based its decision on the clear terms of the mortgage agreement, which stipulated the consequences of default. The court emphasised that the mortgage provided the mortgagee with the right to take possession of the property to secure the outstanding debt. Consequently, the court ordered that the plaintiff recover possession of the specified property and that the defendants pay the plaintiff's costs of the action.