Mottershead Investments Pty Ltd v Aircraft Support Industries Engineering Pty Ltd (in Liquidation) and Ors (No.3)

Mottershead Investments Pty Ltd (the applicant) sought orders against Aircraft Support Industries Engineering Pty Ltd (in liquidation) and its liquidators (the respondents) concerning the accrual of interest on a debt. The dispute centred on the correct date from which interest should be calculated, particularly in light of the respondents' contention that the applicant had unreasonably delayed in resolving the dispute. The matter came before Judge Driver in the Supreme Court of New South Wales.

The primary legal issue before the Court was to determine the date from which interest should accrue on the debt owed to the applicant. This involved considering whether the applicant's conduct had caused an unreasonable delay in the resolution of the dispute, which might impact the commencement date for the accrual of interest. The Court also made observations regarding the appropriate rate of interest to be applied.

Judge Driver reasoned that the statutory provisions governing interest on judgments and orders, specifically section 100 of the Civil Procedure Act 2005 (NSW), allowed for interest to accrue from the date of the judgment or order unless the court otherwise ordered. His Honour found that while a party's conduct could influence the court's discretion regarding the commencement date of interest, the respondents had not established that the applicant's actions had caused an unreasonable delay that warranted departing from the general rule. The Court also noted that the prescribed rate of interest under the relevant legislation was generally applied unless specific circumstances justified a different approach.

The Court ordered that interest was to accrue from the date of the judgment.