Metro Chatswood Pty Ltd v CRI Chatswood Pty Ltd (In Liquidation) (Receivers and Managers Appointed)

Metro Chatswood Pty Ltd sought an interlocutory injunction pending an appeal against CRI Chatswood Pty Ltd (in liquidation). The dispute concerned the restraint of the second respondent from notifying Suncorp-Metway Ltd that it desired payment of the whole or any part of a sum guaranteed by a bank guarantee. The application was heard by Meagher JA.

The primary legal issue before the court was whether to grant an interlocutory injunction to restrain the second respondent from calling upon a bank guarantee, pending the determination of an appeal. This involved an assessment of the balance of convenience.

Meagher JA granted the injunction upon the applicant providing the usual undertaking as to damages and complying with specific security requirements. The court ordered the applicant to pay a sum, calculated by a specified formula involving the BBSY rate and 3.5%, into a controlled moneys account nominated by the second respondent by certain dates. This security was to be held on terms that the balance would be paid in accordance with any further order of the court or agreement between the parties. The costs of the application were reserved as costs in the appeal.