Volkswagen Financial Services Australia Pty Ltd v Victorian Inspection Testing and Compliancing Services Pty Ltd

Volkswagen Financial Services Australia Pty Ltd initiated proceedings against Victorian Inspection Testing and Compliancing Services Pty Ltd on 2 April 2024, seeking declarations regarding their rights under the Personal Property Securities Act 2009. The Applicant, Volkswagen Financial Services Australia Pty Ltd, holds a security interest in a vehicle, which is currently in the possession of a third party, Victorian Inspection Testing and Compliancing Services Pty Ltd. The Applicant aims to obtain possession of the vehicle and seeks a declaration allowing it to enter the premises where the vehicle is held. The dispute centres on the legal rights of the Applicant to reclaim the vehicle and the appropriateness of entering the premises controlled by the Respondent.

The court was tasked with determining whether it had the jurisdiction to make the sought declarations and whether such declarations would interfere with the rights of third parties or amount to trespass. The court considered the precedent set by Judge Ladhams in Volkswagen Financial Services Pty Limited v Glass Shop Perth Pty Limited, and the caution expressed by Fagan J in Senworth Capital Proprietary Limited v Galleria SUV Pty Limited against making orders that might infringe on third parties' rights or constitute trespass without their involvement.

The court found that it could make the declarations sought by the Applicant, considering the existing legal framework and the rights of the Applicant under the Personal Property Securities Act 2009. The court determined that the declarations would not amount to trespass or infringe on the rights of third parties, as the declarations pertain to the Applicant's rights under the Act. Consequently, the court made the orders sought by the Applicant, allowing them to take possession of the vehicle and enter the premises where it is held.

The final orders include declarations that Volkswagen Financial Services Australia Pty Ltd is entitled to take possession of the vehicle and may enter the premises over which Victorian Inspection Testing and Compliancing Services Pty Ltd has apparent control. The court also granted liberty to apply for costs, reserving the matter for further consideration should the Applicant successfully recover possession of the vehicle.