Khattar v Hills Shoppingtown Pty Ltd (subject to a deed of company arrangement)

The matter before the court involved a dispute between Khattar and Hills Shoppingtown Pty Ltd, which was subject to a deed of company arrangement. The plaintiff sought to enforce a judgment against the defendant through the appointment of a receiver to take possession of property. The Federal Circuit Court was tasked with determining whether the court should exercise its equitable jurisdiction to appoint a receiver to aid in the execution of the judgment, or if all legal remedies should be exhausted before seeking such an equitable remedy.

The central issue before the court was whether it should appoint a receiver to aid in the execution of the judgment or require the plaintiff to exhaust all legal remedies before seeking an equitable remedy. The court had to balance the principle that equitable remedies should not be invoked until all legal remedies have been exhausted, against the need to ensure that a judgment creditor receives the full benefit of their judgment.

The court found that the principles governing the appointment of receivers in aid of execution were well-established. While it was generally accepted that all legal remedies should be exhausted before resorting to equitable remedies, this principle was not absolute. The court could consider appointing a receiver if it was necessary to prevent a wasting asset or to ensure the effective execution of a judgment. In this case, the court determined that appointing a receiver was appropriate as it would prevent the wasting of the property and ensure that the judgment creditor received the full benefit of their judgment.

The court ordered the appointment of a receiver to take possession of the property, and directed the receiver to sell the property and apply the proceeds towards the satisfaction of the judgment. The court also ordered that the defendant pay the costs of the application.