Oakland Property Holdings Pty Ltd v BNY Trust (Australia) Registry Limited as Trustee for the Allfinance Funding Trust No. 1

Oakland Property Holdings Pty Ltd, the plaintiff, brought an action against BNY Trust (Australia) Registry Limited as Trustee for the Allfinance Funding Trust No. 1, the defendant, regarding a charge over property owned by the plaintiff. The dispute involved the interpretation of a deed of charge and whether the defendant had any entitlement to a charge over the property. The case was heard in the Supreme Court of New South Wales.

The court was required to decide whether the defendant was entitled to a charge over the property currently owned by the plaintiff. This involved interpreting the deed of charge and determining the rights and obligations of both parties under the agreement. Additionally, the court had to consider an interlocutory application for an injunction to prevent the completion of a sale of the property at a discounted price, which the plaintiff argued would be made with the intent to defraud creditors.

In determining the legal issues, the court found that there was no serious question to be tried that the completion of the sale of the property would be a transaction made with the intent to defraud creditors. However, if there were a serious question to be tried, the balance of convenience would not justify the grant of an injunction. The court recognised that substantial losses would be incurred if the completion of the sale was restrained. As a result, the court found that the defendant was not entitled to a charge over the property, and the caveats over the property owned by the plaintiff were removed.

The court's final orders included the removal of the caveats over the property owned by the plaintiff and a determination that the defendant was not entitled to a charge over the property. The court also dismissed the plaintiff's application for an interlocutory injunction to prevent the completion of the sale of the property at a discounted price.