In the matter of Alleta Pty Ltd

Alleta Pty Ltd applied for an injunction to restrain the auction sale of a property and the disbursement of the proceeds. The dispute between the parties centred on the beneficial ownership of shares in the company that held the property. The court was required to determine whether the applicant had a serious question to be tried, whether the balance of convenience favoured the grant of an injunction, and whether the risk of prejudice to the defendant outweighed any prejudice to the applicant if the injunction were granted.

The court considered the speculative nature of the property's potential appreciation and the impact of mortgage outgoings on its value. The court found that the prospect of appreciation of the property was speculative, and the impact of mortgage outgoings on the property’s value could result in a sale at an undervalue. The court concluded that the balance of convenience favoured the defendant, and the risk of prejudice to the defendant of granting the injunction outweighed any prejudice to the applicant of not granting the injunction.

Accordingly, the court refused the application for an injunction to restrain the auction sale of the property. However, the court granted an injunction to restrain the disbursement of the proceeds of the sale pending the final determination of the dispute.