Webuildem Pty Limited v Lord

Webuildem Pty Limited sought an injunction to prevent the auction of properties mortgaged to the second defendant bank, with the first defendants acting as the bank's agents in possession. The plaintiff claimed it had a conditional offer of refinancing, which could potentially secure the debt and satisfy the bank's interests. The court had to determine if the bank had adequately marketed the properties for sale, and if the plaintiff had a prima facie case against the mortgagee under the Corporations Act 2001, s 420A. The balance of convenience was also a crucial consideration in deciding whether to grant an interlocutory injunction.

The court examined the general rule that an injunction will not be granted unless the mortgage debt is paid into Court, but noted that exceptions to this rule might apply. The exceptions considered were whether the amount of the debt was in dispute or if a refinancing proposal was available. The court also assessed whether damages would be an adequate remedy for the plaintiff. The central issue was whether the plaintiff's conditional offer of refinancing and the disputed amount of the debt justified an exception to the general rule.

The court found that the balance of convenience did not favour the grant of an interlocutory injunction. The bank had taken reasonable steps to market the properties, and the plaintiff had not shown a strong enough case to warrant an exception to the general rule. The court concluded that the amount of the debt being in dispute and the conditional offer of refinancing did not sufficiently shift the balance of convenience in favour of the plaintiff. Consequently, the application for an injunction was dismissed.

The court did not make any specific orders beyond dismissing the application for an interlocutory injunction. The decision emphasised the need for the plaintiff to address the balance of convenience and the adequacy of damages as a remedy in any future applications. The court's ruling underscored the stringent requirements for granting an injunction in mortgage disputes, particularly in cases involving disputed debt amounts and conditional refinancing offers.