Thambiappah v Commonwealth Bank of Australia

Thambiappah v Commonwealth Bank of Australia was a case in which the plaintiff sought compensation for loss of chattels allegedly disposed of by the defendant bank prior to exercising its power of sale. The dispute centred on the interpretation of the mortgage terms and the bank's liability for the disposition of chattels. The case was heard in the Supreme Court of New South Wales.

The legal issues in this case included whether the mortgagee was authorised by the terms of the mortgage to dispose of chattels, whether the power to dispose of chattels was limited to the power to sell, whether the plaintiff had established title to sue, and whether the exclusion of liability operated to defeat the claim for loss of chattels. Additionally, the court examined whether the bank was liable in damages for a "wrongful sale" due to the failure to serve notice of default pursuant to s 57(2)(b) of the Real Property Act 1900.

The court found that the mortgagee was not authorised to dispose of chattels prior to exercising its power of sale, and the power to dispose of chattels was limited to the power to sell. The plaintiff did not establish title to sue, and the exclusion of liability operated to defeat the claim for loss of chattels. Furthermore, the court held that the mortgagor was limited to a suit for accounts, and there was no causal connection between the alleged breach and the loss in any event. As there was no evidence of loss or damage, the mortgagor's claims were dismissed.

The Supreme Court of New South Wales dismissed the plaintiff's claims in their entirety, holding that the bank was not liable for damages in respect of the alleged wrongful sale. The court also found that the notice of default was not properly served, and the plaintiff was not entitled to any compensation.