Perkins v National Australia Bank No. Scgrg-98-1212 Judgment No. S280

The appeal was brought by the National Australia Bank (the Bank) against a decision of the trial judge who found that a Deed of Debenture and a Debtor Finance Facility Agreement (DFF) were invalid and of no effect. Frederick Charles Perkins, as liquidator of Sparrow Green Pty Ltd (the company), was the plaintiff. The validity of the documents was crucial to determine whether the Bank was a secured or unsecured creditor of the company. The trial judge found that Mr Green, one of the directors, did not have actual or ostensible authority to bind the company and the Bank had knowledge of the true extent of Mr Green's authority, disentitling it from relying on ostensible authority. The Bank argued that Mr Green had actual or ostensible authority to bind the company. However, the Full Court found that the trial judge correctly concluded that Mr Green had neither actual nor ostensible authority to bind the company. The Full Court dismissed the appeal, holding that the documents were not validly executed.

The orders of the Full Court were that the appeal be dismissed, and the orders of the primary judge be affirmed.