Lesic v Gippsreal Ltd

The case of Lesic v Gippsreal Ltd involved the mortgagor, Lesic, and the mortgagee, Gippsreal Ltd. The dispute centred on the mortgagee's right to exercise its powers of sale over a property, and the mortgagor's attempt to seek an injunction to restrain this action. The matter was heard in the Federal Court of Australia.

The legal issues that the court was required to address included whether an offer of redemption and payment into court were prerequisites to obtaining an injunction to restrain a mortgagee from exercising their powers of sale. The court also considered whether there were circumstances in which the court could grant an injunction without such an offer and payment, and what factors it should consider in determining whether to do so.

In its decision, the court found that the traditional approach of requiring an offer of redemption and payment into court was not an absolute rule, but rather a principle that could be departed from in appropriate cases. The court held that it could grant an injunction if it was satisfied that the mortgagee was acting oppressively or unconscionably, or if there were other factors that warranted such relief. The court also noted that it could take into account the nature of the security, the conduct of the parties, and the likelihood of the mortgagor being able to redeem the mortgage in determining whether to grant an injunction.

The court found that Gippsreal Ltd was acting oppressively by threatening to exercise its powers of sale in a manner that was likely to cause significant prejudice to Lesic. It also held that Lesic had demonstrated a real prospect of being able to redeem the mortgage. Accordingly, the court granted an injunction restraining Gippsreal Ltd from exercising its powers of sale.