This week's TGIF considers the decision in Six Bruce Pty Ltd v Jadig
Finance Pty Ltd [2018] VSC 552, where the Victorian
Supreme Court granted a last minute injunction to restrain a
mortgagee's power of sale despite the mortgagor not making any
payment into Court.
It considers also how this decision reflects a relaxation of the
High Court's strict rule in Inglis v Commonwealth Trading
Bank of Australasia that a mortgagor will only be entitled to
restrain a valid power of sale where the mortgagor has paid all
funds owing into Court.
WHAT HAPPENED?
The property-developer borrower re-financed property in Toorak,
Victoria with funds advanced by the financier, who took a
first-ranking mortgage over the property as security. Shortly after
the re-financing, the borrower defaulted on the loan. The financier
subsequently took possession of the property as mortgagee in
possession and arranged to sell it at auction.
