Impact Traders Pty Ltd v Australia and New Zealand Banking Group Limited

In the case of Impact Traders Pty Ltd v Australia and New Zealand Banking Group Limited, the dispute involved a credit card merchant facility agreement between the plaintiff, Impact Traders, and the defendant, ANZ Bank. Impact Traders sought various orders concerning the agreement after it was terminated by the bank, including an injunction preventing the bank from terminating a business overdraft facility also provided to Impact Traders. The matter was heard in the Federal Court of Australia.

The court was required to determine the principles governing the discretion to grant interlocutory relief, particularly in relation to the grant of mandatory injunctions. The key legal issues were whether the court should grant an injunction to prevent the bank from terminating the business overdraft facility and whether the principles governing the grant of such injunctions applied in this case. The court also needed to consider the nature of the relationship between the parties under the Merchant Agreement and the bank's right to terminate the agreement and associated facilities.

The court found that the principles governing the grant of mandatory injunctions required the plaintiff to demonstrate a serious question to be tried, a balance of convenience favouring the grant of the injunction, and irreparable loss or damage if the injunction was not granted. The court held that the bank had not acted unreasonably in terminating the Merchant Agreement and that the principles did not apply in this case. The court also noted that the bank had the right to terminate the business overdraft facility and that the plaintiff had not established the necessary criteria for an injunction. Consequently, the court dismissed the plaintiff's application.

The court ordered that Impact Traders pay ANZ Bank's costs of the application.