The High Court recently considered an application for an urgent interim injunction to restrain a mortgagee sale. The hearing was held on the eve of the mortgagee auction. The applicant was second mortgagee of the secured property and sought an injunction on grounds that a valid PLA notice had not been served, that the marketing campaign was inadequate to satisfy the first mortgagee's duty to exercise reasonable care to obtain the best price and that the first mortgagee was not acting in good faith.
The Court had no difficulty in dismissing the application on all grounds. Although some time had lapsed since the PLA notice was issued, there was no evidence that the first mortgagee had waived its entitlement to rely on the notice and the default had not been remedied. As to the marketing campaign, the Court was satisfied that the first mortgagee was acting reasonably in all the circumstances and the allegations to the contrary were unsupported by any compelling evidence. On the final point, the evidence clearly showed that the first mortgagee was acting primarily for the purpose of recovering its long-standing debt. The Court also held that the balance of convenience weighed heavily in favour of the first mortgagee.
The auction proceeded the following day.
The full judgment is available here.