AVS Property Pty Ltd v McMaster [2010] FCAFC 81

CORPORATIONS – winding up – genuine dispute between mortgagee and receivers as to amount secured by mortgage – dispute jeopardised timely sale of land – court ordered discharge with proceeds of sale to be held in an interest bearing account pending resolution of dispute – amount secured by mortgage subsequently determined by court and principal paid to mortgagee – whether mortgagee entitled to interest on principal held in account at mortgage rate

REAL PROPERTY – mortgages – court ordered discharge to be provided – proceeds of sale held in interest bearing account pending resolution of dispute as to amount secured by mortgage – amount secured by mortgage subsequently determined by court and principal paid to mortgagee – whether mortgagee entitled to interest on principal held in account at mortgage rate

EQUITY – consideration of Court’s discretion in imposing condition on which proceeds held in interest bearing account – obligation to consider whether condition just and reasonable between the parties